The_Essential_Manager_s_Handbook

66 / LEADING OTHERS

Types of power

Your power within an organization can

come from a variety of sources. Use these

different types of power in their correct

contexts to maximize your effectiveness

as a manager.

-^ Legitimate power This derives from
your position in the hierarchy of a
company and is enhanced by a clear
chain of command and corporate
structure in the organization.
-^ Coercive power The threat of sanction
or punishment confers power, but
should be used very carefully—when
the organization is in difficulty or crisis.

Ways to use managerial

power to obtain desired

outcomes

Legitimate power derives

from your position in the

hierarchy of a company,

and is enhanced by a clear

chain of command and

corporate structure

-^ Referent power This form of^
power derives from being respected
and admired by subordinates, and
encouraging them to behave in
imitation of your style. In this
situation, giving subordinates
responsibility for their own actions
enhances your power. It works best in
small workplaces, where one-on-one
relationships can be fostered.

• Reward power This comes from^
  the ability to provide incentives
  and rewards, such as praise or
  promotion, to subordinates.

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