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Formal/Position based-Power
Formal power is based on an individual’s position in an
organization.
Four categories of formal power:
1. Coercive Power
a person who has control over a situation imposes
penalties/punishment on his/her followers when they failed to fulfill
the instruction given.
Control others by using fear of punishment/threat of negative outcomes
Examples of penalty or fear are:
– Verbal abuse
– Loss of promotion
– Possibilities that name is dropped from dealing in mega important
projects
– Possibilities of job losses
– Delayed for promotion
2. Reward Power
Happens when a leader has the ability and power to reward or
share positive values with his/her followers.
Benefits or rewards can be given through financial or non-financial
rewards.
– Financial rewards: Pay rises and bonuses
– Non-financial rewards:
• Recognition for a job well done (a box of chocolates or gift
vouchers)
• Opportunity to work in the organization’s mega projects
• Trust in relationship
4. Information Power
Information power is when a person has access to
key information in the organization.
Under information power, the person is in power as:
– He/She controls the flow of information to others.
– He/She has the ability to manage and control
environmental uncertainties
• Uncertainties can be managed through
prevention, forecast and absorption
Personal/person-based Power
Personal power is when a person exercises power derived
from their unique individual characteristics.
Categories of personal power:
1. Expert Power
The ability to influence other people based on the expertise and
knowledge which one has.
A person who obtains special skills and knowledge, or is an expert in
certain areas (often an experienced person in organization though they
are not managers/supervisors).
Having special skills, knowledge and expertise allows him/her to be in
control.
Organizational Behaviour Second Edition All Rights Reserved
© Oxford Fajar Sdn. Bhd. (008974-T), 2017 8–14
BASES OF POWER (cont.)
2. Referent Power
The ability of a leader to influence a follower
because of the follower’s loyalty, respect, friendship,
admiration, affection, or a desire to gain approval.
This situation happens when followers tend to like,
respect and admire their leader (the follower desire to be
like the leader (personal liking, charisma and reputation)