Power and

Leadership

1
 The essence of leadership is influence over
others. But, influence is not unidirectional.
 Power is the engine that drives the ability to
influence.
 To understand leadership effectiveness
therefore, an analysis of the complex web of
power relationships and influence processes in
organizations is essential. We also need to
examine the sources of power and the
relationship of different power sources to
leadership effectiveness.

2
POWER IN ORGANIZATIONS:
DEFINITION AND
CONSEQUENCES
The terms power, authority and influence
are often used interchangeably and
sometimes in different ways by different
writers.

3
Influence:
The success of an influence attempt can
be distinguished among qualitatively
distinct outcomes: commitment,
compliance, and resistance.
In general, influence is understood as the
effect of one party (the agent) on another
(the target).

4
 Commitment: This is a result in which the
target agrees with a request or decision from
the agent and strives carryout the request or
implement the decision effectively.
 Compliance: This is an outcome in which the
target is willing to do what the agent asks, but
is apathetic rather than enthusiastic about it.
 Resistance: The target is opposed to carrying
out the agent’s requests and decisions.

5
Power:
Basically, power is the ability of one
person (the agent) influencing the
behavior and/or attitudes of others (the
target).
Thus, power is not exclusive to leaders
and managers.
Authority on the other hand, is the
power vested in a position and therefore,
is exclusive to that position.
6
SOURCES OF INDIVIDUAL POWER

 Legitimate power: From holding a formal

position. Others comply because they accept the

legitimacy of the position of the power holder.

 Reward power: Target complies in order to

obtain rewards controlled by the agent.

7
Coercive Power: Compliance is to avoid
punishments controlled by the agent.
Expert Power: Based on a person’s
expertise, competence, and information in a
certain area.
Referent Power: The target person comply
because they respect and like the power
holder (agent).

8
 Another conceptualization of power
sources is as follows:
Position Power: Formal authority, control
over rewards, control over punishments,
control over information and ecological
control.
Personal Power: Expertise, friendship or
loyalty and charisma.
Political Power: Control over decision
processes, coalitions, co-optation and
institutionalization.
9
 SOURCES AND
CONSEQUENCES OF POWER
The first three sources of power
–legitimate, reward and coercive- are
position powers.
Managers and executives generally hold
all these three sources of power.
The expert and referent sources of
power are personal.

10
 POTENTIAL REACTIONS TO
INDIVIDUAL SOURCES OF POWER

Coercive Power Resistance

Reward Power

Legitimate Power Compliance

Expert Power

Referent Power Commitment

11
 INFLUENCE TACTICS
 Rational persuasion (Expert, info)
 Inspirational appeal (Referent)
 Consultation (All)
 Ingratiation (Referent)
 Personal appeal (Referent)
 Exchange (Reward and info.)
 Coalition building (All)
 Legitimate tactics (Legitimate)
 Pressure (Coervice)
12
 ORGANIZATIONAL
SOURCES
OF POWER
 Coping with uncertainty

 Centrality

 Dependency

 Substitutability

13
POWER SOURCES FOR TOP
EXECUTIVES

 Legitimate power and position

 Access to resources

 Control of decision criteria

 Centrality in organizational
structure 14
 LEADERSHIP FACTORS IN
EMPOWERMENT

Create a positive emotional atmosphere

 Set high performance standards
 Encourage initiative and responsibility
 Reward openly and personally
 Practice equity and collaboration
 Express appropriate confidence in
subordinates 15
ORGANIZATIONAL FACTORS
IN EMPOWERMENT
 Decentralize structure
 Select and train leaders appropriately
 Select and train employees
appropriately
 Remove bureaucratic constraints
 Reward empowering behaviors
 Create fair and open organization
policies 16
QUESTIONS?

17