Power in organizations refers to the capacity of an individual or group to influence others’ behavior to accomplish organizational goals. Understanding how power works—where it comes from, how it is used, and the risks it entails—is critical for managerial success and ethical leadership. When used effectively, power is a key driver of influence and performance; when misused, it can undermine trust and morale. By understanding power and its applications, individuals can enhance their ability to manage relationships and drive outcomes in the workplace (Griffin, Phillips, & Gully, 2020, p. 434).
Organizational power is generally categorized into position power and personal power. Position power is derived from a person’s formal role in the organizational hierarchy. This includes legitimate power (based on formal authority), reward power (control over desired outcomes), and coercive power (control through punishment or threats). For instance, managers may use legitimate power to assign tasks, reward power to provide promotions, and coercive power to discipline employees (Griffin et al., 2020, pp. 435–436). Legitimate, reward, and coercive powers are considered positional because they originate from a person’s formal role within an organization (Revolution Learning, n.d.). On the other hand, personal power stems from an individual’s traits and expertise. Expert power is based on specialized knowledge, while informational power stems from control over key information. Referent power arises from personal charisma and respect, and persuasive power involves the ability to use logic and reason to influence others. Referent and expert power, unlike coercive forms, are based on personal attributes and credibility, making them more sustainable for long-term influence (Revolution Learning, n.d.). These forms of personal power are especially important for long-term influence, as they transcend formal positions (Griffin et al., 2020, pp. 437–438).
To acquire power in an organization, individuals must control resources that are important, rare, and irreplaceable. Developing deep expertise, building visibility, and cultivating key relationships are essential strategies for gaining power. Performing well and becoming indispensable to a team or organization also increases perceived power. Once acquired, power must be used thoughtfully. Effective leaders often rely more on expert and referent power than on coercive means, using influence tactics like rational persuasion and emotional appeals to motivate others (Griffin et al., 2020, p. 439). Referent and expert power, unlike coercive forms, are based on personal attributes and credibility, making them more sustainable for long-term influence (Revolution Learning, n.d.).
Although power itself is neutral, its misuse—abuse of power—can cause significant organizational harm. Abuse includes using power to exploit, demean, or manipulate others into actions they regret. Common consequences include decreased job satisfaction, increased deviance, and employee turnover. Power dynamics within organizations “can lead to toxic work environments where leaders become dismissive of employee concerns, undermine collaboration, and promote hierarchical dominance over cooperation” (French, 2025). Leaders must therefore exercise discretion and ensure their use of power aligns with ethical standards and organizational goals. Being in a position of authority does not justify overreach; responsible use of power demands fairness, transparency, and accountability (Griffin et al., 2020, pp. 439–440).
Empowerment involves sharing power with employees and allowing them autonomy to make decisions. This approach improves morale, efficiency, and adaptability. However, empowerment is effective only when employees are trained and confident. Managers must equip teams with the tools and knowledge necessary for responsible decision-making. Ethical leadership plays a crucial role in this process, fostering trust and reducing the need for micromanagement. By promoting leadership styles that value collaboration and fairness, organizations can prevent power from being used destructively (French, 2025). When employees feel empowered, they are more engaged and capable of solving problems proactively (Griffin et al., 2020, pp. 441–442).
Power is not only held by individuals but also by subunits (departments or teams) within organizations. Subunit power increases when the unit controls scarce resources or has strategic importance. Four conditions enhance subunit power: resource scarcity, centrality, substitutability, and uncertainty. When a department controls scarce, essential resources, its influence increases. Similarly, subunits whose work impacts many other departments (centrality) or cannot be easily replaced (low substitutability) gain power. Additionally, units that can handle ambiguity and unpredictable demands effectively gain power due to their ability to reduce organizational uncertainty (Griffin et al., 2020, pp. 442–443).
Understanding the sources, uses, and implications of power is essential for ethical leadership and effective organizational functioning. From personal influence to departmental control, power shapes behavior and decision-making at every level. Leaders who thoughtfully acquire and use power, avoid its abuse, and foster empowerment can build more resilient, motivated, and high-performing organizations (Griffin et al., 2020, p. 443).
Reference List
Griffin, R. W., Phillips, J. M., & Gully, S. M. (2020). Organizational behavior: Managing people and organizations (13th ed.). Cengage Learning.
Revolution?Learning?and?Development?Ltd. (2022). 5 sources of power in organisations. Retrieved July 13, 2025, from https://www.revolutionlearning.co.uk/article/5-sources-of-power-in-organisations
French, L. (2025, February 27). The impact of power on organizational culture. Penn State Blogs. https://sites.psu.edu/aspsy/2025/02/27/the-impact-of-power-on-organizational-culture