Types of Power and How It Is Used There are different ways that power is used at various types of companies and how it is



Types of Power and How It Is Used

There are different ways that power is used at various types of companies and how it is

interpreted. There are five different forms power that is divided two separate categories. There

is formal power where power is distributed as a chain of command within a company. Personal

power is the influence that the individuals’ holds based on experience instead of position that is

held within a company. In the following passage I will describe the different kinds of power

and how it is used in professional situations.

Under the category of formal power where it is utilized in the form power that is

distributed at a company in the form of chain of command and the types of power that are listed

as follows:

Coercive Power is used terms of using fear of an employee losing their jobs or receiving

a poor performance review from their employers. Employers use coercive power by threatening

their employees to get goals accomplished. My manager asserts his authority when the

employees are not completing tasks in a timely manner which causes problem in the shop. The

manager threaten to either fire the employees, dock the employees, or suspend the employees

which causes the workers to be fear of their jobs and ensure is done with quality as well as meet

the deadlines that are set.

Reward Power is used by rewarding their employees the work that they have

accomplished. These rewards can come in perks like; time off, promotions, raises or a bonus.

While our manager can instill fear to ensure that we complete our tasks the owner who rewards

his employees for completing their tasks which shines a positive light on the company. These

rewards come in the form of bonuses or gifts.


Legitimate Power is the power that is issued by having a position of power such as a

Manager, President, or CEO. The chain of command of positions that preside at the company

I work for is the CEO and owner who is Chris Esteban, the President of the company is Daniel

Esteban, the Vice President is Carl Rossiere, and the manger is Tim Gibbard.

Under the category of personal power is utilized more from a leadership position versus

having a position of power in a firm or a corporation. The forms of personal power are as is


Expert power is the experience and skills that is acquired over time. The experience that

is gained from particular areas, that allows this experience to gain leadership qualities which

can be utilized in getting around them to achieve their goals. In a family owned business that

I worked for, had a change in power when the son took over for his father and once he retired

from the business. While in charge the new owner company always used is father’s advice when

things became overwhelming in his early years and it would assist him achieving the tasks that

was put in front him.

Referent power comes from being trusted and respected. While I was working for the

company it was known for having a reputation for doing great work for their customers. There

are several companies that are clients with the company that has been referred by word of mouth.

They have built a reputable name for themselves by offering their clients great service and their

clients refer the colleagues to A. Esteban & Company.

I work as a messenger at the company the way that the power in the company affects the

communication within our department is dealing with middle management and while they are

using coercive power in addition to being reward power by offering their employees with time

off and bonuses by completing tasks in a timely manner.



Power and how it is used can be interpreted in the different forms. It does not have to

be defined only by position that is earned within a firm or organization; it also can be earned by

showing personal sources of power such as leadership qualities which an individual who has a

company position may not necessarily have. Those that use power do so where it benefits their

style of power.


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