Unveiling the 5 Key Sources of Organizational Power
Discover the 5 sources of power in an organization Legitimate power, expert power, coercive power, referent power, and reward power are all crucial to understanding how power dynamics work within a company Learn how each type of power influences decision making and team dynamics
In business, the term "power" is often associated with international politics, war, or sports. However, it is important for management to understand the Five Sources of power within an organization. These sources of power include authority, influence, and certain skills that enable a business to gain a competitive advantage and establish a unique identity. Typically, these powers are utilized to manage employees and maintain discipline and decorum within the organization.
Power can be a valuable tool when used for good. By leveraging power to address injustices, organizations can benefit greatly. Having power can also facilitate positive outcomes in life. Leaders can use their power to guide their team, managers can use their power to analyze and implement strategies, and executives can use their power to benefit their company. With multiple sources of power available, it's essential for everyone to have access to power in order to achieve their goals. In 1959, sociologists Bertram Raven and John French identified and categorized five sources of power, which have since become deeply ingrained in organizational structures.
Five sources of power in an organization are
1) Legitimate Power
Legitimate power, also referred to as positional power, is derived from a person's position within an organization and is deemed as valid. For instance, a manager who supervises a team is accountable for assigning tasks to subordinates, as well as assessing their work and providing constructive feedback.
A manager's power is derived from their position, known as 'legitimate power.' This power is established through job descriptions that outline reporting relationships and team leadership responsibilities. In order for legitimate power to be effective, a manager must possess the necessary qualifications, experience, and expertise required for the job, such as a CEO.
2) Expert Power
Expert power is derived from an employee's knowledge and expertise, as the name suggests. In today's complex and specialized business world, organizations highly value employees with unique specializations and extensive research experience. Possessing expert power can open doors for employees to gain legitimate power within a company. Demonstrating a good and acceptable display of expert power can lead to promotions and make an employee indispensable. This can result in gaining legitimate or positional power, as seen in the case of Medico-Legal experts.
3) Coercive Power
Coercive power can be a dangerous tool in the workplace. It is the power a person holds to coerce or threaten their fellow employees. This type of power is often used to enforce strict deadlines or rules, and can result in negative consequences for those who fail to comply. Unfortunately, the use of coercive power can create a culture of fear and mistrust among employees.
4) Referent power
While it is true that bosses need to maintain a level of discipline in the workplace, using threats such as salary cuts, leave cuts, or terminations can have negative effects on employee morale and motivation. Instead, bosses can use their coercive power in a more positive way by setting clear expectations and goals, providing constructive feedback, and offering support and resources to help employees improve their performance. When employees feel valued and supported, they are more likely to challenge themselves and strive for excellence in their work.
Referent power is derived from a person's personality, their ability to build relationships with colleagues, and their charismatic presence. This results in a level of respect and approachability towards them. Additionally, having close connections with senior leaders or those in positions of authority can also contribute to referent power.
5) Reward Power
They can motivate them to work harder and achieve targets by offering incentives such as salary hikes, bonuses, paid leave, company sponsored vacation or even promotions. Reward power is a valuable tool for managers to recognize and reward employees for their hard work and dedication. By utilizing this power effectively, managers can encourage employees to increase their productivity and overall performance.
