Types of Power for Every Business

 

Business leaders have influence over those who report to them at work. However, not all authority is created equal, and if misused, it can harm a leader’s standing in general regardless of the type of business or product you sell. There are five different categories of social power, including those that influence commercial connections, according to psychologists John French and Bertram Raven. Leaders and employees can both get insight into the dynamics of the workplace by learning which sorts of power have the ability to both favorably and negatively affect people.

Power that is legal or tiular

In addition to legitimate authority, a person may also have titular power, which refers to an official title they may possess. Those with higher titles have more authority over those with lower-status titles or no titles at all within an organization‘s framework. A department director, for instance, has more authority than a manager but less than a vice president.

The Exercise of Force

Coercive power is used when a manager threatens or punishes employees to control their behavior. To achieve a project deadline, a management could have an employee put in extra hours and threaten to terminate them or give them a terrible performance review if they don’t live up to expectations.

Utilizing Reward Power to Motivate

On the other hand, leaders can use reward power to adopt a more constructive stance. Employers utilize this strategy to encourage employees to work more diligently or quickly. For hitting new production levels, rewards can come in the form of pay raises or bonuses. For reaching sales targets, rewards can come in the form of promotions or special awards.

Utilizing Referent Power

When others love being around them or even aspire to be like them, that person has legitimate power. The charismatic leaders and celebrities tend to radiate this power. People are quick to give them what they want, sometimes even just because they are polite, so they can exploit this to their advantage.

The Importance of Expertise

Somebody is frequently referred to as an expert when he possesses unique knowledge or abilities in a field. An individual will stand out in the workplace if he has a unique ability or area of knowledge, which will give him a particular level of importance.