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Power resides in both
people and positions

Power is the ability to influence the behavior of others. Production line supervisors may want more attention to quality control instead of a previous emphasis on quantity alone. They have power if their wishes are followed and if the company increases its commitment to quality control. Bank managers may want to increase the number of credit cards issued to customers. They are successful with their use of power if tellers persuade large numbers of depositors to accept the bank's offer of credit cards.

Power can reside in company positions or in the people who wield power.

There are three types of position power: legitimate, coercive, and reward. With legitimate power, certain individuals are recognized as having the right to direct the behavior of others. Bank managers can turn down applicants for loans. Policemen can approach an unruly crowd and ask its members to "break it up." City mayors can set priorities, such as spending money on filling potholes rather than sponsoring weekend community events at various beaches.

With coercive power, certain individuals can force others to behave in certain ways and have the right to administer punishment.

A company's managers can fire new hires any time during an agreed upon probationary period. Coaches can bench players who break team rules. Internal Revenue Service Agents can fine people who do not file their tax returns in a timely manner.

With reward power, certain individuals can distribute resources that people desire. Company managers can offer pay raises and promotions to employees who meet desired performance standards. College professors can award high grades to students who turn in insightful and well-written term papers. Policemen can give commendations to citizens who help in the fight against crime.

There are two types of power associated with people rather than the positions that they hold: expert and referent.

With expert power, people influence others because of the knowledge and skills that they possess. Such people earn the respect of others. Office workers who know advanced computer technology that allows many employees to do their work more effectively have expert power. Pharmacists who know about interactions among various prescription drugs, and who can alert physicians to the dangers of certain drug combinations, also have this type of power.

Some people are influential because they have referent power. This type of power is based on their personalities and on various types of personal attractiveness. People with referent power are often exciting, interesting people who are willing to share their resources with others. In thinking about people with referent power, others make conclusions about qualities that make them good leaders.

"These people are very charismatic. They have clear visions about a better company and they communicate their ideas clearly. They are very persuasive when they talk about what they would like to see in the future. They behave in ways that I think leaders should act. They represent the sort of person I want to be if I ever enter the ranks of leaders and powerholders."

Problems can arise when people in leadership positions are unclear about the sources of their power.

For example, their status may be position-based and they may be seen as having legitimate power given their job title. But if they feel that others are deferring to them because of their personalities and other features of referent power, they may develop inflated views of themselves.

Such a mistake is a major reason why some people become intoxicated and begin to abuse the power associated with their company positions.

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