Sources of Power in the Workplace: Types, Organizational Roles, and Their Pros & Cons
Power in the workplace influences decision-making, leadership effectiveness, and team dynamics. French and Raven’sfive sources of power—legitimate, reward, coercive, expert, and referent power—are commonly found in organizational settings. Each type of power hasadvantages and disadvantages, depending on how it is used. This essay explores these five sources of power, their typical holders within an organization, and their pros and cons.
1. Legitimate Power
Definition:
Legitimate power is derived froma formal position or authoritywithin an organization. It comes from the structure of the company rather than an individual’s personal qualities.
Who Holds This Power?
CEOs, Directors, Managers, Supervisors, Team Leaders
Example: AProcurement Directorhas legitimate power to approve supplier contracts.
Pros:
✔Providesclear authority and structurein decision-making.✔Helpsmaintain order and accountabilityin an organization.✔Employeesrespect and followofficial leaders.
Cons:
✘Can lead toresistanceif employees feel decisions are madewithout consultation.✘Overuseof authority can create arigid, bureaucratic environment.✘Power istemporary—losing the title means losing authority.
2. Reward Power
Definition:
Reward power is the ability toinfluence behaviorby offering incentives such asbonuses, promotions, pay raises, or recognition.
Who Holds This Power?
HR Managers, CEOs, Procurement Heads, Line Managers
Example: AProcurement Manageroffersperformance bonusesto encourage supplier cost reductions.
Pros:
✔Motivates employeesto achieve goals.✔Encourageshigh performance and engagement.✔Helpsreinforce positive behaviorsin the workplace.
Cons:
✘Can createentitlement issues—employees mayexpect rewardsfor all tasks.✘If rewards areinconsistent, it can lead todemotivation.✘Over-relianceon rewards may reduceintrinsic motivation(employees only work for rewards, not passion).
3. Coercive Power
Definition:
Coercive power comes from the ability topunish or enforce negative consequencesfor poor performance, non-compliance, or misconduct.
Who Holds This Power?
Supervisors, Compliance Officers, HR Managers, Security Heads
Example: AChief Compliance Officerenforcespenalties for unethical procurement practices.
Pros:
✔Ensuresdiscipline and adherenceto company policies.✔Helpsprevent unethical behavior(e.g., fraud in procurement).✔Encouragesemployees to meet deadlines and expectations.
Cons:
✘Creates fear and resentmentamong employees.✘Can lead tolow moraleandhigh turnover.✘Not effective long-term—employees may complyout of fear, not respect.
4. Expert Power
Definition:
Expert power comes fromspecialized knowledge, skills, or expertisethat make an individualvaluable in the workplace.
Who Holds This Power?
Subject Matter Experts (SMEs), Senior Engineers, IT Specialists, Procurement Analysts
Example: AProcurement Data Analysthas expert power by usingbig data analytics to improve supply chain efficiency.
Pros:
✔Encouragestrust and credibilityamong employees.✔Expertise ishighly valuable—companiesrely onknowledgeable individuals.✔Individuals with expert power often gaininfluence without formal authority.
Cons:
✘Power islimited to specific expertise—not useful outside their domain.✘If not shared, expertise can lead toknowledge hoarding(lack of collaboration).✘Overconfidence in expertise can make individualsresistant to learning new approaches.
5. Referent Power
Definition:
Referent power is based oncharisma, respect, and personal influencerather than authority or knowledge.
Who Holds This Power?
Charismatic Leaders, Mentors, Senior Employees with Strong Relationships
Example: ASenior Procurement Executivewithstrong leadership qualitiesinspires the team to embrace change.
Pros:
✔Createsloyalty and trustamong employees.✔Can be used toinfluence without authority.✔Helps inmentoring and developing future leaders.
Cons:
✘Can besubjective—depends on personality and relationships.✘Overuse can lead tofavoritismandbias in decision-making.✘Can beineffectiveif employees do notpersonally respect the leader.
Conclusion
In any workplace, different individuals hold different types of power based ontheir role, expertise, and relationships. Whilelegitimate, reward, coercive, expert, and referent powerall contribute to leadership and decision-making, each has its ownadvantages and drawbacks. Effective leaders and procurement professionals mustbalance these power sources strategically, ensuring that authority isrespected, motivation issustained, discipline isenforced fairly, expertise isvalued, and personal influence isused ethically.
