Power and the illusion of control
Niro Sivanathan's latest research investigates why power creates the illusion of control over uncontrollable situations, perhaps leading to some of the risky decisions that contributed to the global financial crisis
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In a new podcast Niro Sivanathan, Assistant Professor of Organisational Behaviour at London Business School, explains: "Power can over inflate self-esteem to the extent that people believe they have more control over outcomes than they actually do."
Niro's initial work into power explored how individuals cope with the sudden acquisition or loss of power, and found that rapid increases in power can prompt individuals to overreact to their new-found power with potentially disastrous consequences.
Recent studies carried out by Niro and his colleagues found that people in power believed themselves to have control over uncontrollable situations, such as predicting the outcome of a die roll, even when this power was merely imagined or remembered.
The dangerous effects of sudden power can have disastrous effects for individuals, companies and even entire nations. Niro offers examples of companies that have collapsed after the overambitious decisions of those ‘drunk on power', as well as political leaders whose overestimation of their strength has led them into thoughtless protracted conflict.
Niro explains: "Power deeply transforms our psychological state by simplifying our thinking and diminishing our ability to take other's perspective. This psychological state of power causes us to engage in impulsive and risky behaviours. The present work suggests that the engine driving this behaviour is the illusion of control."
Listen to the podcast for more information on Niro's research into power and control.