Unit 7
I. Information for study.
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How leaders influence others
Why do people accept the influence of a leader? One major reason is that leaders have power. In this section, we examine the major sources of power and the ways that leaders can effectively use the power they potentially have available.
Sources of Leader Power
Power is the capacity to affect the behavior of others. Leaders in organizations typically rely on some or all of six major types of power: legitimate, reward, coercive, expert, information, and referent.
Legitimate Power. Legitimate power stems from a position's placement in the managerial hierarchy and the authority vested in the position. When we accept a job with an organization, we usually are aware that we will be receiving directions related to our work from our immediate boss and others in the hierarchy. Normally, we accept such directions as legitimate because these persons hold positions of authority. Hence legitimate power relates to the position, rather than to the person per se.
Reward Power. Reward power is based on the capacity to control and provide valued rewards to others. Most organizations offer an array of rewards, including pay raises, bonuses, interesting projects, promotion recommendations, a better office, support for training programs, assignments with high visibility in the organization, recognition, positive feedback, and time off. The greater a manager's control over valued rewards, the greater that manager's reward power.
Coercive Power. Coercive power depends on the ability to punish others when they do not engage in desired behaviors. Forms of coercion or punishment include criticisms, terminations, reprimands, suspensions, warning letters that go into an individual's personnel file, negative performance appraisals, demotions, and withheld pay raises. The greater the freedom to punish others, the greater a manager's coercive power.
Expert Power. Expert power is based on the possession of expertise that is valued by others. Managers often have considerable knowledge, technical skills, and experience that can be critical to subordinates' success. To the extent that a leader possesses expertise and information that is needed or desired by others, the leader has expert power.
Information Power. Information power results from access to and control over the distribution of important information about organizational operations and future plans. Managers usually have better access to such information than do subordinates and have some discretion over how much is disseminated to work-unit members. The greater the control over important information, the greater the information power.
Referent Power. Referent power results from being admired, personally identified with, or liked by others. When we admire people, want to be like them, or feel friendship toward them, we more willingly follow their directions and exhibit loyalty toward them. Some observers argue that Lee Iacocca’s initial success in turning around the Chrysler Corporation was based partially on the fact that he possessed referent power in relation to the work force. The more that a leader is able to cultivate the liking, identification, and admiration of others, the greater the referent power.