5 Types of Power in Leadership

At the most basic level, power is the ability to influence others. This can be achieved through persuasion, coercion, manipulation, charisma, or by exercising authority.

The power of leadership takes many forms, each with its own unique influence on how to motivate, guide, and inspire their teams. A thorough understanding of the various types of power used in leadership is crucial for being an effective leader. It enables leaders to customize their approaches to maximize their impact and foster a positive work environment for everyone involved in the business.

In this article, we will review the definition of leadership power, different types of power, and share details that make each unique.  Power for a leader is different from leadership skills, although there are some important connections. An influential leader can move smoothly between types of power, including personal power and formal power, to achieve positive results, offer rewards, contribute to the bigger picture, and create overall better outcomes for individuals and the company as a whole.

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What Is Leadership Power?

This is the ability of a leader to control resources, people, and events to reach objectives and overcome various challenges. Understanding power is crucial for building relationships with teams and allows them to achieve results and deliver on the goals set.

Leaders are responsible for team members' performances and productivity, and how they handle situations makes them unique. How they use their power can help improve employees or negatively impact them. Again, the most powerful leaders in any particular area can pivot smoothly as necessary because they have the knowledge to do so.

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2. Expert Power

This power is derived from your expertise, skill set, knowledge, and years of experience. It is a type of informational power. Employees assume that executives and leaders possess the knowledge and skills others lack. Expert power is more of a personal power, as anyone can hold it irrespective of their position or job title.

For example:

• An individual with a Master's or PhD in marketing and sales management will have the respect and ear of their colleagues because of their years of experience and expertise, which gives them power and influence.

When to use expert power:

• When providing technical guidance or subject matter expertise.
• When problem-solving complex issues that require specialized knowledge.
• When training or developing the skills of a team member.

Drawbacks of expert power:

• Those with high expertise may look down on team members, believing other's ideas are inferior.
• It may limit the ability to adapt to new situations or technologies.
• It can create a sense of elitism or distance from the rest of the team.
• It may be undermined if the leader's expertise becomes outdated or irrelevant.

3. Reward Power

This power results from a leader's ability to reward team members for compliance. Rewards may include promotions, raises, training opportunities, and desirable accomplishments. These rewards are usually controlled by people in higher positions, giving those in them the influence to give team rewards and wield reward power.

For example:

• A team leader rewards their team for completing a project, or a supervisor can offer bonuses, promotions, or public recognition to motivate employees to achieve higher performance.

When to use reward power:

• To motivate and incentivize high-performance.
• When acknowledging and recognizing exceptional contributions.
• To attract and retain top talent.

Drawbacks of reward power:

• Can create a culture of short-term, extrinsic motivation.
• May result in entitlement and expectations of constant rewards.
• Can be costly and unsustainable for the organization.
• May not be effective for complex or intrinsically motivated tasks.

4. Legitimate Power

Compared to other forms of power, legitimate power is based on a hierarchical system in an organization. Formal power establishes a clear line of authority that ensures stability. Effective leaders using this power maintain fairness and transparency, ensuring that formal authority is respected and followed.

For example:

• A school principal sets policies on educational goals and ensures they are consistently applied and followed throughout a school year.
• Another example is a CEO  who has the right to set strategic directions and make decisions that can impact the bottom line and workplace culture.

In a modern workplace, we are told that anyone can navigate the hierarchy to wield this power, although systemic inequalities mean that is not always the case. It's a power ideally given to individuals with the skill and experience to lead teams effectively. It follows that when abused, it can be taken away. This makes it different from other types of power.

When to use legitimate power:

• When establishing authority and setting the overall direction for the organization.
• When making decisions that require formal approval or adherence to policies.
• When delegating tasks and responsibilities within the organizational hierarchy.

Drawback of legitimate power:

• Bureaucracy: Relying on formal power may cause bureaucratic hurdles that hinder decision-making, suppressing positive change and communication.
• Potential for abuse: Those with this power can mislead and mistreat others to do their bidding, disrupting the work environment.
• Resistance and resentment: Unfair use of this power can negatively affect employee morale and engagement and may lead to resistance to the leader in the position of power.

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