In popular literature, power is often described as a personal characteristic, and a frequent topic is how one person can influence or dominate another person. Managers have five sources of personal power.
Legitimate power is the authority granted by the organization to the formal management position a manager holds. Reward power stems from the ability to bestow rewards—a promotion, raise, or pat on the back—to other people. The authority to punish or recommend punishment is called coercive power. Expert power derives from a person’s greater skill or knowledge about the tasks being performed. The last, referent power, is derived from personal characteristics: people admire the manager and want to be like or identify with the manager out of respect and admiration. Each of these sources may be used by individuals within organizations.
Power in organizations, however, is often the result of structural characteristics.Organizations are large, complex systems that may contain hundreds, even thousands, of people. These systems have a formal hierarchy in which some tasks are more important regardless of who performs them. In addition, some positions have access to more information and greater resources, or their contribution to the organization is more critical. Thus, the important power processes in organizations reflect larger organizational relationships, both horizontal and vertical.
Reference: Daft, R. L. (2010). Understanding the Theory and Design of Organizations.SOUTH-WESTERN. Cengage Learning.
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