Intro to Organizational Behavior (OB): Power and Politics Bases of Power Coercive Reward Legitimate Expert Referent Informational

Bases of Power: Study Guide

What This Is

Bases of power refer to the sources of influence leaders and managers use to shape behavior in organizations. French and Raven (1959) identified six key types: coercive, reward, legitimate, expert, referent, and informational. Understanding these helps managers motivate teams, resolve conflicts, and drive performance without over-relying on authority. For example, Google’s "20% time" policy (allowing employees to work on passion projects) leverages reward power (autonomy as a perk) and expert power (trusting employees’ skills), boosting innovation.

Key Theories & Models

• French & Raven’s Six Bases of Power (1959):
• Coercive: Influence through punishment or threats (e.g., firing, demotions). Implication: Short-term compliance but risks resentment (e.g., Amazon’s "rank-and-yank" system).
• Reward: Influence through incentives (e.g., bonuses, promotions). Implication: Effective for motivation but can create entitlement (e.g., Salesforce’s "Ohana Culture" ties rewards to collaboration).
• Legitimate: Authority from formal role/position (e.g., CEO, manager). Implication: Works best when paired with other powers (e.g., Netflix’s "keeper test"—managers must justify their role’s value).
• Expert: Influence from specialized knowledge/skills (e.g., IT specialists, data scientists). Implication: Critical in flat organizations (e.g., Zappos’ holacracy relies on expert power over hierarchy).
• Referent: Influence from charisma, likability, or admiration (e.g., Steve Jobs at Apple). Implication: Builds loyalty but hard to scale (e.g., Southwest Airlines’ Herb Kelleher inspired employees through humor and accessibility).

• Informational: Control over data or knowledge (e.g., gatekeepers, analysts). Implication: Powerful in knowledge economies (e.g., McKinsey consultants leverage informational power with clients).

• Power Dependence Theory (Emerson, 1962):

• Power is relational—A has power over B if B depends on A for resources (e.g., a manager controls promotions, so employees depend on them). Implication: Reduce dependency by diversifying resources (e.g., cross-training employees to limit bottlenecks).

• Zone of Indifference (Barnard, 1938):

• Employees accept orders within a "zone" where authority feels legitimate. Implication: Overuse of coercive power shrinks this zone (e.g., Uber’s Travis Kalanick faced backlash for aggressive leadership).

Step-by-Step Application

1. Diagnose the Power Source:
2. Ask: What’s driving compliance here? (e.g., fear of punishment = coercive; admiration = referent).

3. Example: If employees follow a manager only because they’re the boss (not because they’re skilled), the power is legitimate—not expert.

4. Match Power to the Goal:

5. Short-term compliance? → Coercive or reward.
6. Long-term commitment? → Expert or referent.

7. Example: Netflix uses expert power (hiring top talent) and reward power (high salaries) to retain employees.

8. Balance Hard and Soft Powers:

9. Hard powers (coercive, reward, legitimate) = control.
10. Soft powers (expert, referent, informational) = influence.

11. Example: Southwest Airlines combines legitimate power (clear hierarchy) with referent power (fun culture) to boost engagement.

12. Reduce Dependency Risks:

13. Avoid over-reliance on one power source (e.g., a manager who only uses coercive power will lose trust).

14. Example: Google’s "g2g" (Googler-to-Googler) program spreads expert power across teams, reducing bottlenecks.

15. Leverage Informational Power Strategically:

16. Share knowledge to build trust; hoard it to control others.

17. Example: Consulting firms (e.g., BCG) train employees to share insights (informational power) to strengthen client relationships.

18. Monitor Power Dynamics:

19. Use 360-degree feedback to check if power is perceived as fair (e.g., do employees see rewards as equitable?).
20. Example: Microsoft’s shift from stack ranking (coercive) to continuous feedback (expert/referent) improved morale.

Common Misconceptions

• Misconception: "More power = better leadership."

• Correction: Overuse of coercive or legitimate power can backfire (e.g., Wells Fargo’s sales scandal—pressure to meet targets led to fraud). Referent and expert power build sustainable influence.

• Misconception: "Informational power is the same as expert power."

• Correction: Expert power = deep knowledge (e.g., a data scientist’s skills); informational power = control over data (e.g., a gatekeeper who decides what info to share). Example: A cybersecurity analyst has expert power; a CFO’s assistant may have informational power over financial reports.

• Misconception: "Referent power is only for charismatic leaders."

• Correction: Anyone can build referent power through trust and consistency (e.g., Patagonia’s Yvon Chouinard inspired employees through authenticity, not just charisma).

• Misconception: "Reward power always motivates."

• Correction: Rewards must be perceived as fair and attainable (e.g., Enron’s bonus culture incentivized unethical behavior). Expectancy Theory (Vroom) explains why rewards fail if employees doubt their link to performance.

• Misconception: "Legitimate power is enough to lead."

• Correction: Employees may comply but not commit. Example: Elon Musk’s leadership at Twitter—legitimate power (as CEO) didn’t prevent mass resignations due to lack of referent/expert power.

Exam / Case Interview Tips

1. Spot the Power Type in Scenarios:
2. Question: "A manager threatens to fire employees who miss deadlines. What power base is this?"

3. Answer: Coercive power. Why? Threats = punishment.

4. Compare Power Bases:

5. Tricky distinction: Expert vs. Informational power—expert = skills; informational = control over data.

6. Example: A doctor has expert power; a hospital administrator may have informational power over patient records.

7. Link Power to Outcomes:

8. Question: "Which power base is most likely to increase organizational citizenship behavior (OCB)?"

9. Answer: Referent power. Why? Employees go above and beyond for leaders they admire (e.g., Southwest Airlines’ employees volunteering for extra tasks).

10. Avoid the "Power Paradox":

11. Trap: Assuming power is static. Power shifts based on context (e.g., a junior employee with rare skills may have expert power over a senior manager).

Quick Practice Scenario

Scenario:
At TechCorp, the engineering team follows Sarah (a senior developer) because she’s the only one who understands the legacy code. Meanwhile, Mark (the VP of Engineering) struggles to get the same team to adopt new tools—employees resist, saying, "Mark doesn’t get our work."

Question:
1. What power base does Sarah rely on? 2. Why does Mark’s authority fail here?

Answers:
1. Sarah uses expert power—her specialized knowledge gives her influence.
2. Mark’s legitimate power fails because he lacks expert power (employees don’t respect his technical judgment) and referent power (they don’t admire him).

Last-Minute Cram Sheet

1. Coercive power = punishment/threats (e.g., firing). ⚠️ Short-term compliance only.
2. Reward power = incentives (e.g., bonuses). ⚠️ Can create entitlement.
3. Legitimate power = formal authority (e.g., CEO). ⚠️ Not enough for commitment.
4. Expert power = specialized skills (e.g., data scientist). Critical in flat orgs.
5. Referent power = charisma/admiration (e.g., Steve Jobs). Builds loyalty.
6. Informational power = control over data (e.g., gatekeepers). Powerful in knowledge economies.
7. Power Dependence Theory: A has power over B if B depends on A.
8. Zone of Indifference: Employees accept orders within a "legitimate" range.
9. ⚠️ Hard powers (coercive, reward, legitimate) = control; soft powers (expert, referent, informational) = influence.
10. ⚠️ Referent ≠ Charisma—trust and consistency matter more than personality.