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Managing Power

Leadership (Intermediate)

INDEX

Managing Power

Developing Trust

Empowering Employees

Types of Power

Managing Power: French & Raven’s Five Forms of Power

What distinguishes leadership from power? The answer may not be as straightforward as it initially appears. Upon deeper reflection, you might come to see that leadership and power can often overlap. In scenarios where someone is recognized as the 'leader,' that individual typically holds significant decision-making authority. If you occupy a leadership role in your organization, it's fair to say that you possess a considerable amount of power too.

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Types of Power

Reward Power

You can achieve this when you find yourself recognized for your expertise, whether through your knowledge or experience.

Reward Power is one of the most prevalent forms of power.

The research on the 'Five Forms of Power' was carried out by John French and Bertram Raven in 1959, and it holds significance as it aimed to identify what factors contribute to an individual's power in various situations. By outlining the five distinct types of power, you can evaluate your own leadership skills.

Expert Power

Leaders often manage their team members through the ability to impose consequences rather than through rewards.

It can be likened to an 'x-factor' because it represents a type of influence that arises without any clear explanation.

It is often the most recognized type of authority and leadership, primarily because it is associated with a specific role.

Referent Power

Legitimate or Title Power

Coercive Power

In today's unpredictable landscape, a key focus for leaders is cultivating trust and credibility, both of which can be quite delicate. Before diving into strategies for leaders to enhance trust and credibility, it's essential to understand what these concepts entail and their significance. Honesty stands as the cornerstone of credibility. Research consistently highlights honesty as the top trait admired in leaders. “Honesty is essential to leadership. If people are going to follow someone willingly, whether it be into battle or the boardroom, they first want to assure themselves that the person is worthy of their trust.”

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Developing Trust

Trust is essentially the belief in a leader's integrity, character, and capabilities. When followers trust a leader, they are more willing to be vulnerable, and confident that their rights and interests will be safeguarded.

• Integrity: honesty and truthfulness.
• Competence: technical and interpersonal knowledge and skills.
• Consistency: reliability, predictability, and sound judgment in various situations.
• Loyalty: a commitment to protect someone, both physically and emotionally.
• Openness: refers to the readiness to share thoughts and information openly.

Research has pinpointed five key dimensions that contribute to the concept of trust:

Complexities

Effectiveness

Integrity

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Digital Leadership (21st Century)

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Empower employees...

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Empowering teams...

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How to promote safe procedures...

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Empowering Employees

• Ahmed, T. (2024). (2024). Contemporary Leadership for Today’s Ever-Changing World. Vantage Circle. [Blog]
• Benmira, S. Agboola, M. (2021). Evolution of Leadership Theory. Faculty of Medical Leadership and Management. doi:10.1136/leader-2020-000296
• Indeed Editorial Team. (2024). 14 Contemporary Leadership Theories with Explanations. Indeed.
• Komives, S. & Dugan, J. (2010). Contemporary Leadership Theories. 10.4135/9781412979337.n14.
• Lumen. (n/d). Contemporary Approaches to Leadership. in Principles of Management. Unit 8. Leading People and Organizations.
• M.V. (2023). Leading the Charge: How Contemporary Leadership Styles Drive Business Growth. Indeed.
• NYU Wagner. (n/d). Collective Leadership. NYU Wagner University.
• Newton, P. (2016). Leadership Theories: Leadership skills. bookboon.com.
• Robbins, S.P, Coulter, M., (2016). Management. (13th Edition). Pearson Education.

Webliography

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In today's environment, the effectiveness of managers and leaders hinges on their ability to earn the trust of their followers. Factors like downsizing, financial difficulties, and the rise of temporary employment have eroded employees' trust in their leaders and diminished the confidence of investors, suppliers, and customers. Consequently, modern leaders face the significant task of rebuilding and restoring trust with both employees and other key stakeholders in the organization.

Beyond honesty, credible leaders also demonstrate competence and the ability to inspire. They effectively convey their confidence and enthusiasm, leading followers to assess a leader's credibility based on their honesty, competence, and inspirational capacity. Trust is intricately linked to credibility, and the two terms are often used interchangeably.

Often, individuals with referent power are simply well-liked due to their personality, charisma, or even their appearance. They may not have a logical basis for their influence, yet they manage to captivate many people for some reason. If you naturally attract others and they enjoy engaging with you, you likely possess a degree of referent power. Recognizing the type of power you hold as a leader—and understanding the reasons behind it—can be an invaluable insight for effectively guiding others. Chances are, you embody a mix of the five power types mentioned earlier. Reflect on the power you currently wield in your role and consider what additional power you should aim to cultivate to advance your career.

For instance, if you're collaborating on a project with colleagues who are usually at the same level as you, but possess specialized knowledge in the area at hand, you might naturally rise to a position of influence and authority. Often, this influence is more informal than formal; you may notice that people are paying closer attention to your contributions in meetings, and your insights are valued more highly, even if you haven't been officially designated as a leader. Gaining influence through your expertise can provide lasting advantages for your career. Since this type of power is more intrinsic compared to others, like reward power, it tends to endure well beyond the completion of a specific project. When people recognize you as an expert in a particular field, that reputation can accompany you throughout your professional journey.

Leaders today must navigate the complexities of guiding individuals who may not be part of their immediate teams or who might even be located in different places. This includes members of cross-functional or virtual teams, as well as individuals from suppliers, customers, and partners in strategic alliances. In these scenarios, leaders cannot rely solely on their formal authority to exert influence. Many of these connections are dynamic and temporary, making it essential for leaders to quickly establish and maintain trust to ensure successful collaboration. Why is it vital for followers to have faith in their leaders? Studies indicate that trust in leadership correlates strongly with positive job outcomes, such as enhanced job performance, increased organizational citizenship behavior, higher job satisfaction, and greater organizational commitment. Given the critical role of trust in effective leadership, what strategies can leaders employ to foster it?

This 'reward' can manifest in various ways, but in a corporate context, it often refers to financial incentives. If you can provide your team with bonuses or salary increases, you can capture their attention through these incentives. Assuming your team members are motivated by the rewards you offer, they are likely to collaborate effectively with you to enhance their chances of obtaining those rewards. However, a challenge may arise if you are unable to provide rewards that resonate with your team. For instance, if you lack the authority to grant significant financial incentives, you will need to find alternative benefits and perks that may not hold the same appeal. For reward-based leadership to be successful, the leader needs to offer incentives that align with the aspirations of the team members.

For instance, if you have the authority to terminate someone due to poor performance, you wield coercive power that can shape their behavior. This may lead them to work harder to meet your expectations and secure their position. However, relying on coercive power typically results in team members doing just enough to avoid negative outcomes. In contrast to reward power, which motivates individuals to excel for the sake of gaining benefits, coercive leadership tends to yield only the minimum effort necessary to steer clear of issues.

Many companies are choosing to empower their employees because quick decision-making is essential, especially from those who have the most expertise on specific issues—often found at lower levels of the organization. To thrive in a fast-paced global market, employees must make decisions and implement changes swiftly. Additionally, with organizational downsizing, many managers now oversee larger teams. To manage the increased workload effectively, they have had to delegate more authority to their staff. While empowerment isn't a one-size-fits-all solution, it can be highly effective when employees possess the necessary knowledge, skills, and experience to perform their roles effectively.

For instance, the President wields power simply because of the title they hold, along with the responsibilities that accompany it. In this scenario, the authority stems more from the position than from the individual's personal qualities. In organizations, this form of power typically resides with individuals who have titles such as Owner, CEO, or Executive. While this power can be incredibly effective while it is in place, it usually dissipates once the title is reassigned to another person.

Among the five dimensions, integrity stands out as the most essential factor when evaluating someone's trustworthiness. In our previous discussion about leadership traits, both integrity and competence were highlighted as consistently linked to effective leadership. Recent changes in the workplace have underscored the significance of these leadership qualities. For example, the shift towards empowerment and self-managed teams has diminished many traditional methods of employee oversight. When a team has the autonomy to plan their work, assess their performance, and even make hiring choices, trust becomes paramount. Employees need to have confidence that their managers will treat them justly, while managers must trust that their employees will diligently meet their obligations.

As highlighted throughout this text, there is a growing trend among managers to lead by empowering their teams. Empowerment means giving workers more freedom in decision-making. Today, countless employees and teams are taking charge of crucial operational decisions that impact their roles directly. They are responsible for budgeting, scheduling, managing inventories, addressing quality issues, and other tasks that were once solely the domain of managers. For example, at The Container Store, any employee who receives a customer request is authorized to address it. Garret Boone, the chairman emeritus, emphasizes, “We hire everyone as a leader. Anyone in our store can take actions typically associated with a manager.”

The 21st Century has ushered in a transformative phase of leadership known as Digital Leadership. Modern leaders need to possess the right mindset and skills to excel in a rapidly changing digital landscape. With the rise of digital technologies, new opportunities and challenges have emerged, and it’s essential for Digital Leaders to adeptly navigate this fluid environment. Digital Leaders recognize the significance of integrating technology throughout their organizations, enhancing performance, elevating customer experiences, fostering innovation, and boosting profitability. They have a thorough understanding of the technological resources at their disposal and leverage them effectively. Embracing calculated risks is part of their strategy, as they know that innovation is crucial for maintaining a competitive edge. Additionally, they emphasize the ongoing learning and development of their team members, ensuring everyone is equipped with the skills needed to thrive in the digital era. Digital Leadership is an essential competency for contemporary leaders, serving as a gateway to new opportunities, business transformation, and enduring success. Leadership styles have always mirrored the societal and organizational norms of their times. In today’s fast-paced, global business landscape, leaders must blend elements from various styles, adjusting their methods to address evolving circumstances and the diverse needs of their teams.

Employees at DuPont’s facility in Uberaba, Brazil, celebrated the site’s 10th anniversary by planting trees. Among the many achievements they marked, the standout was the facility's impressive record of zero environmental incidents and no safety violations since production commenced. This success can be largely attributed to the implementation of the STOP (Safety Training Observation Program), which empowers employees to observe and correct each other’s practices while promoting safe procedures.