Power Sources

Power sources can be divided into two types

Formal Power: Organizations have formal hierarchy that depicts certain level of relationships of employees with each other at different levels in the hierarchy. Formal power depends on the position one individual holds in that organizational chart. The organizational chart basically shows the line of authority and responsibilities. Formal power is derived from either one’s ability to coerce or reward others. Formal power may be categorized into three types, which are as follows:

1. Coercive power: The source of this power is fear. It is derived from the ability to influence others through threats or punishments. This form of power has majorly contributed towards the negative connotation of power. In an organizational framework, managers use coercive power in a way to directly or indirectly threaten the people who work for them, in case they are not working in accordance with the norms. Mindtools.com states that coercive power can cause unhealthy behaviour and dissatisfaction in the workplace. It is basically related with punishing subordinates for not meeting performance expectations by withholding pay increase, or demoting, or firing the subordinates
2. Reward Power: This type of power is opposite to coercive power. It is the extent to which a manager can use organizational resources to reward the employees who are contributing efficiently for the accomplishment of the organizational goals. The greater the perceived value of such rewards, greater will be the power of the manager. These rewards can be extrinsic in nature with tangible values, or can be intrinsic in nature like praise and recognition. Rewards might come in the form of job assignments, schedules, pay increases or benefits, recognition, praise, promotions, etc. Both coercive power and reward power are actually counterparts of  each other.
3. Legitimate power: The third base of position power is legitimate power or formal authority. This sort of power stems from manager’s position in the organization and the authority that lies in that respective position. It basically depicts the formal authority to control and use organizational resources. This kind of power corresponds to the term ‘authority’. Subordinates acknowledge the legitimate power that comes from being in a leadership position in an organization. It is related to person’s title and job responsibilities. It is lost when a person loses the job title.

Personal Power: This type of power resides in the individual and it is completely unassociated with the individual’s position. In this perspective, power comes from the individual’s unique characteristics and charisma. Personal power can be further divided into two subparts:

1. Expert power: When other people believe that an individual has some sort of relevant expertise or specialized knowledge, which others do not possess, the individual acquires power. This makes a subordinate follow his/her superior because of the expertise of the superior. Now a days, when jobs are becoming more specialized, one has to depend upon the experts to accomplish the ultimate goals of the organization. The influence therefore is completely based on special skills or knowledge.

2.  Referent power: Referent power comes from being trusted and respected by others. This is the ability to control another’s behaviour because others wish to be identified with the person. This sort of power basically develops out of admiration of others. It cannot be acquired but gets developed because of the personal charisma. In the organizational context, a subordinate might obey his/her superior he/she likes the superior and wants to emulate him/her.