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Human beings are social animals; they gather, influence, and often compete with each other. To exercise and expand their influence and manipulation on others, and thus to gain their own benefits, they grasp various types of power. In the case of National Australian Bank, Catherine Walter, the head of the audit committee, and Graham Kraehe, then Chairman of the board of directors, both exerted their influence and their publicizing the scandal demonstrated the extension to which power conflict and politics within an organization could end up.
Power
In regard to the powers, we could easily identify two major powers Kraehe and Walter hold: positional and personal. Positional power can be defined as rights officially provided and recognized by the organization. It thus can be narrowed down into four minor bases-legitimate, reward, coercive, and information. In this case, both Kraehe and Walter possess all four. For Kraehe, he was the Chairman of the Risk Committee, while Walter was the Chairperson of the Risk Committee, and both of them were independent non-executive directors, and members of the Nomination Committee (Principal Board Risk Committee Charter, 2006; Principal Board Audit Committee Charter, 2006) They had their legitimate power to oversight and exercise their influence. In addition, their being the Chairperson of their department reveals they had formal control over the information from their part. As members of the Nomination Committee, that they were responsible for selection and removal of Directors shows that they had the reward and coercive powers to control the Board, and thus the organization (Principal Board Nomination Charter, 2005).
In terms of personal power, it can be divided into three sources: expert, referent, and prestige. To analyzing an individual's personal power, we could focus on their work experience and field of specialization. Kraehe has extensive business and management experience. In his 40 years of managerial career, not only has he been the CEO of a number of famous wine and automobile corporations, but also had the ability to lead an diversified manufacturing company to become a successful public company. He was an expert in risk management and was admired for his years of experience and success. On the other hand, Walter has been a solicitor for over 20 years and moved into an extraordinary range of public and private-sector boardrooms. She also served as a Commissioner of the City of Melbourne. In the break
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