What is the meaning of power in business and what sources of power?

Power is the ability to get things done. Power can influence the behavior of the other to achieve some goal or objectives. Sometimes people resist attempts to make them do certain things, but an effective leader can overcome that resistance. Although people sometimes feel that power became evil or corrupt, power is a fact of organizational life and in itself is neither good nor bad. Leaders can use power as strength and constrain them, to serve the organization’s goals or undermine them. Another way to view power is as a resource that people use in relationships. When a leader influences subordinates, it is called downward power. We can also think of this as someone having power over someone else. On the other hand, subordinates can also exercise upward power by trying to influence the decision of their leader. Indeed, leaders depend on their teams to get things done and in a way are subject to the power of team members. Leaders have immense power it depends on how they use it effectively as a strength of the business and use it for growth as a business. Power and authority play a crucial role in business and there are several sources of power. The sources of power Power comes in several ways, each of which has different effects on the target of that power. Some derive from individual characteristics; others draw on aspects of an organization’s structure. The major sources of power are six types that are listed below. Legitimate power Legitimate power is also known as positional power. This is power when people have power with their status and a certain position held in an organization. The organization gives certain power to coordinate and directs the activities of the subordinate. Legitimate power usually involves formal authority delegated to the holder of the position. The strength of the power is also depending on the structure of the organization and position location. For example, a high power level exercises a high position, and a low level of power exercises a low level of position. The distribution of power is relying on the organization because the organizations vary in how much they want to grant to individuals. Reward power Reward power refers to the power that comes from the ability to confer valued material rewards or create other positive incentives. The power depends on the reward such as the great the perceived values of rewards, the great power achieve for example promotion, increment in payment, and many more. It refers to the degree to which individuals can provide external motivation to others through benefits or gifts. It can be achieved, the manager who uses praise and recognition has also great sources of getting this type of power. Referent power Referent power refers to the ability of an individual to attract others and build loyalty and respect. It depends on the personality and interpersonal skills of the power holder. A person may be admired because of specific personality traits, such as charisma or likeability, and many more. People want to follow that person emotionally and willingly to follow the respected person. People may be respectful to the referent power holders because of their genuine actions toward them. These positive feelings became the basis for interpersonal influences. Expert power Expert power is referring to the skill, knowledge, and experience of a person. This power comes with a certain person when the organization needs particular expertise and knowledge. The area of this type of power is very limited because of the person who takes expertise in a particular area and field. Coercive power Coercive power refers to those powers that are used for punishment or sanction and other negative consequences. Coercive power will help in controlling employees and ensuring that they adhere to the organization’s policies and norms. It is seeking to force or compel behavior rather than to influence it by persuasion. Employees are forced by the authority to comply with their orders. These can include direct punishment or the withholding of desired resources or rewards. Coercive power relies on fear to induce compliance. Informative power Informative power comes from access to facts and knowledge that others find useful or valuable. That access can indicate a relationship with other power holders and convey status that creates a positive impression. Information power may serve as the basis for beneficial exchange with others who seek that information. But the information power is short-term power, for the achievement of this power does not require any credibility. Power tactics People use a variety of power tactics to push or prompt others into action. We can group these tactics into three categories- behavioral, national, and structure. Behavioral tactics Behavioral tactics can be soft or hard. Soft tactics refer to direct and interpersonal and also include several collaborations or social interactions. On the other hand, the hard tactics can be harsh, forceful, and directly related to concrete outcomes. Rational tactics Rational tactics refer to making use of reasoning, logic, objective judgment, and many more. But the nonrational tactics rely on emotionalism and subjective, for example, every person bargaining and persuasion (rational), evasion (non-rational). Structural tactics Structural tactics exploit aspects of the relationship between individual roles and positions. Bilateral tactics, such as collaboration and negotiation, involve reciprocity on the parts of both the person influencing and the target. Unilateral tactics, on the other hand, are enacted without any participation on the part of the target.