What does power signify in a workplace setting? When you think of power, you may think of someone abusing their roles just for their own benefit, or perhaps a dictator assigning tons and tons of work while they chill in their office. Although power often exerts a negative connotation, power can actually bring benefits to an organization if utilized correctly. First of all, how exactly is power defined? Power is defined as a possession of authority, control, or influence of others. In the business context, having power can come from roles in the workplace, the amount of knowledge one has, or one’s charismatic nature (Dahl, 1957). Take your stereotypical manager for example, an ideal manager would exercise his power in a way where employees have a sense of motivation to work. Or even better, managers can help employees develop a sense of security and comfort at work. On the other hand, a horrible manager leaves their employee in the dust, exhausts them emotionally, and creates an inhospitable environment. Luckily, however, having authority is not only for those of higher status or those who have a higher position, employees can also maintain power and use it to their advantage (Paterson, 2022). Let’s examine the different types of power.

           In the business industry, there are 7 types of power: legitimate, coercive, referent, expert, reward, moral, and connection (Murphy, 2017). Legitimate power refers to the hierarchy within the company (Bertram, 1958). The CEO would be on top of the company, followed by the manager, and then employees. These are the classic positions that follow the authority levels of the company. The CEO would have the most power and run the entire company. The manager manages a smaller sector of the company and is responsible for ensuring that their sector performs well. They are responsible for the employees, making sure they’re on task, have the right environment, and are motivated. 

           This leads to the second type of power: coercive. This type of power is responsible for discipline and motivation (Quain, 2019). For example, a manager can threaten to fire an employee if they do not correct their behavior, or if they are not performing well. A manager does this not to scare the employee or make them feel unmotivated, but rather to help them stay on track and focus on the company’s goals. 

The next type of power is referent power. You could see this as a role model or a person who helps inspire fellow workmates through interpersonal skills. A person of this caliber gets to know others on a personal level and earns the respect of their workmates. This could also be known as charisma, or how charismatic a person is, and can help with their referent power (Murphy, 2017). 

           Expert power is specializing in a specific field that can influence others to trust and rely on them (Giang, 2013). For example, an office setting managing the finances of a company might need help when a computer runs down or it ceases to work. A person who is knowledgeable in IT or computer hardware can earn the respect of others as a reliable person. 

           Another way of earning respect is through the means of reward. Reward power refers to motivating employees by rewarding or offering incentives (Murphy 2017). This is important because having authority alone or threatening employees will not help in the long run. Instead, offering motivation through tangible objects or providing mental aid, will help the employee thrive in the long run. When me and my family go on vacation, my Dad always buys souvenirs and local snacks to bring home. At that time, I wondered why he did that, but he would visit his employees' houses and give them their gifts. They would always light up and appreciate his gift no matter how small it was. 

           Moral power is having strong ethics and values to influence people. This can be seen as the nature of a true leader, who can guide their employees to success while not abusing their roles (Murphy, 2017). For example, I sometimes go to my parent’s workplace and it gets rowdy in the middle of the afternoon, where chaos fills the room. People run from one place to another, phone calls are made at every station, and computer sounds fill the room. Yet with just a few claps and a speech, the manager is able to keep everyone on track and help calm them down in the middle of chaos. 

           Finally, connection power is defined as having access to resources and networks through influential people. Usually, CEOs have a strong connection power to make startups and hold conferences (Giang, 2013). More resources can help a company’s efficiency and increase its chances of success. As a business individual, my Dad always invites guests over to our house to talk and sometimes to even host meetings. I came to find out that these individuals are relationships my Dad has formed over many years of being in the business industry. Those people helped influence and shape my Dad into the successful person that he is today. 

           With power, an individual can enhance their ability to exert influence and control over others. Although it might seem obstructive, power is the internal source that drives a company forward. Without power, a company is liable to other competitors and lacks a solid pillar that holds employees, managers, and CEOs accountable. That leads to the question, does power lead to a company’s success or downfall? But most importantly, what type of power would you like to build on to enhance your own influence? 

 

 

 

 

 

References:

Dahl, R. (1957). University of North Carolina at Chapel Hill. The Concept of Power. http://fbaum.unc.edu/teaching/articles/Dahl_Power_1957.pdf 

Paterson, T. (2022, April 26). Council post: Power has shifted to employees: What leaders can do about this opportunity. Forbes. https://www.forbes.com/sites/forbesbusinesscouncil/2022/04/25/power-has-shifted-to-employees-what-leaders-can-do-about-this-opportunity/?sh=f758e542fa00 

Murphy, M. (2017, March 20). You need to know the 7 types of power if you want to succeed. Forbes. https://www.forbes.com/sites/markmurphy/2017/03/19/you-need-to-know-the-7-types-of-power-if-you-want-to-succeed/?sh=37d9a067536d 

Bertram, R. (1958, June). Apa PsycNet. American Psychological Association. https://psycnet.apa.org/record/1959-08103-001 

Quain, S. (2019, February 4). The advantages of coercive power in the Workplace. Small Business - Chron.com. https://smallbusiness.chron.com/advantages-coercive-power-workplace-18511.html 

Giang, V. (2013, July 31). The 7 types of power that shape the workplace. Business Insider. https://www.businessinsider.com/the-7-types-of-power-that-shape-the-workplace-2013-7