Power in Organization

Power
• Social psychologists John French and Bertram Raven studied this
phenomenon more than half a century ago.

• Over the years, research helped us to understand why some

leaders influence us, how prepared we are to accept their
power, and – if you are a leader – how you can develop new
power bases to get the best from your people.
Understanding Power
5+1 bases of power (French and Raven, 1959)

• Legitimate – This comes from the belief that a person has the
formal right to make demands, and to expect others to be
compliant and obedient.

• Reward – This results from one person's ability to compensate

another for compliance.

• Expert – This is based on a person's high levels of skill and

knowledge.

• Referent – This is result of a person's perceived attractiveness,

worthiness and right to others' respect.
Understanding Power
• Coercive – This comes from the belief that a person can punish
others for noncompliance.

• Six years later, Raven added an extra power base (6th):

• Informational – This results from a person's ability to control

the information that others need to accomplish something.

• By understanding these forms of power, you can use the positive

ones to full effect, while avoiding the negative power bases that
managers can instinctively rely on.
The Bases of Power
• Let's explore French and Raven's bases of power in 2 groups –
positional and personal.

I. Positional Power Sources

1. Legitimate Power
• President, PM, or a CEO has legitimate power. Electoral
mandates, social hierarchies, cultural norms, and organizational
structure all provide the basis for legitimate power.
• This type of power, however, can be unpredictable and unstable.
If you lose the title or position, your legitimate power can
instantly disappear, because people were influenced by the
position you held rather than by you.
• Also, the scope of your power is limited to situations that others
believe you have a right to control.
• Eg., Fire chief instructing people to stay away from a burning
building, for example, they'll likely listen.
The Bases of Power
2. Reward Power

• People in power are often able to give out rewards -

Increments, promotions, desirable assignments, training
opportunities, and simple compliments – controlled by people
"in power."

• The problem with this power base is that it may not be as strong
as it first seems. Supervisors rarely have complete control over
salary increases, or promotions. Even CEOs need permission
from their Boards of Directors for some actions.

• Also, when you use up rewards, or when the rewards do not

have enough perceived value, your power weakens.
The Bases of Power
3. Coercive Power

• This source of power is also problematic, and can be abused.

What's more, it can cause dissatisfaction or resentment among
the people it is applied to.

• Threats and punishment are common coercive tools. You use

coercive power when you imply or threaten that someone will be
fired, demoted or denied privileges.

• While your position may allow you to do this, though, it does not
mean that you have the will or the justification to do so. You may
sometimes need to punish people as a last resort but if you use
coercive power too much, people will leave. (You might also risk
being accused of bullying them.)
The Bases of Power
4. Informational Power

• Having control over information that others need or want puts

you in a powerful position. Having access to confidential financial
reports, being aware of who is due to be laid off, and knowing
where your team is going for its annual “away day” are all
examples of informational power.

• In the modern economy, information is a particularly potent form

of power. The power derives not from the information itself but
from having access to it, and from being in a position to share,
withhold, manipulate, distort, or conceal it.

• With this type of power, you can use information to help others,
or as a weapon or a bargaining tool against them.
The Bases of Power
II. Personal Power Sources
• To be a true leader, you need a more robust source of power
than a title, an ability to reward or punish, or access to
information.

5. Expert Power
• When you have knowledge and skills that enable you to
understand a situation, suggest solutions, use judgment, and
generally outperform others, people will listen to you, trust
you, and respect what you say. As a subject matter expert,
your ideas will have value. Others will look to you for leadership
in that area.

• You can expand your confidence, decisiveness and reputation

for rational thinking into other subjects and issues. This is a
good way to build and maintain expert power, and to improve
your leadership skills.
The Bases of Power
6. Referent Power (antecedent)

• Referent power comes from one person liking and respecting

another, and identifying with them in some way. Celebrities have
referent power, which is why they can influence everything from
what people buy to which politician they elect. In a workplace, a
person with referent power often makes everyone feel good, so
he tends to have a lot of influence.

• Referent power can be a big responsibility, because you don't

necessarily have to do anything to earn it. So, it can be
abused quite easily. Someone who is likeable but who lacks
integrity and honesty, may rise to power – and use that power to
hurt and alienate people as well as to gain personal advantage.

• Relying on referent power alone is not a good strategy for a

leader who wants longevity and respect. When it is combined with
expert power, however, it can help you to be very successful.