Every organization is a living organism with a set of peculiarities that should be taken into consideration while creating and operating it. Surely, there is a set of regulations all members of the organization have to comply with. However, there is also a set of tendencies, processes and phenomena that are present in every social group united by one business activity without anyone’s wish or effort. An organization is first of all a group with its dynamics of development, with the processes of distributing power and authorities, with its hierarchical structure, influence and expertise of some members etc. Thus, it is highly important to understand all these processes when dealing with organizational structure, management and leadership issues. Correlation of power and politics within an organization can acquire critical importance at times. It goes without saying that in some cases the major part of conflicts in a company may arise from the inconsistency of power, or wrong politics exercised inside its structure, or the wrong policies of exercising power adopted in a certain company. This is why it is necessary to realize the fact that adequate understanding of relations of power and politics in an organization is really essential for building up sound power relations that will assist managers as well as employees to conduct their everyday working activities well and comply with the regulations of the company, its ethical code and other standards. At the very beginning of the discussion, it is necessary to find the key difference between power and influence – according to the opinion of Schermerhorn et al. (2005), the essence of power is in the ability to make a person do what somebody wants, while influence is the behavioral response to the realization of power. Power comes from two sources – the leading position in the hierarchy of the organization the person occupies, thus being entitled to some privileges and being given the authority (positional power) and the power one gets because of some individual qualities that make him or her attractive for others giving him or her influence over them (personal power). It is important to remember that the person who occupies a leading (managerial) position always possesses positional power because the position he or she occupies in the company already presupposes having it. Nevertheless, even the representative of senior management may not have personal power, which will negatively influence their interrelations with colleagues: people accept positional power as a must and it does not raise any commitment or motivation in them; however, the impact of personal power on people is partly subconscious, thus creating empathy towards the leader and the genuine wish to assist him or her. There are different types of positional power that require thorough consideration: these are reward power (influencing subordinates through a set of rewards for well-accomplished tasks), coercive power (influence through different kinds of punishment – verbal or financial, detention etc.), legitimate power (influence through the inherent right to control actions of subordinates), process power (authority to control the production process and interfere with any stage thereof), information power (regulated access to information) and representative power (t