The Distinction between Formal and Informal Powers: Understanding the Differences
When it comes to understanding power, there are two types of power that people often confuse: formal and informal power. Formal powers refer to the powers that are granted to individuals by their position or authority in an organization, while informal powers are those that are gained through personal relationships or social networks.
While both types of power can be useful in achieving organizational goals, it is important to understand their differences in order to use them effectively. In this article, we will take a closer look at the distinction between formal and informal powers and provide examples of how they can be used in the workplace.
What are Formal Powers?
Formal powers are those that are granted to individuals by their position or authority within an organization. These powers are typically outlined in job descriptions, organizational charts, and other formal documents. Formal powers can include:
1. Legitimate Power
Legitimate power is the power that comes from a person’s position or status in an organization. For example, a manager has the legitimate power to make decisions about their department or team.
2. Coercive Power
Coercive power is the power to punish or threaten punishment. For example, a manager may use coercive power by threatening to fire an employee if they do not meet a certain performance standard.
3. Reward Power
Reward power is the power to offer rewards, such as bonuses or promotions, to employees who perform well. For example, a manager may offer a bonus to an employee who exceeds their sales quota.
What are Informal Powers?
Informal powers are those that are gained through personal relationships or social networks. These powers are not formally granted by an organization, but rather are earned through personal trust, respect, and influence. Informal powers can include:
1. Expert Power
Expert power is the power that comes from a person’s knowledge or expertise in a particular field. For example, a senior engineer may have expert power over other engineers in the same department.
2. Referent Power
Referent power is the power that comes from a person’s likability or popularity. For example, a team leader may have referent power over their team members because they are well-liked and respected.
3. Charismatic Power
Charismatic power is the power to influence others through one’s personality or personal qualities. For example, a charismatic CEO may be able to rally employees around a new vision or strategy.
Using Formal and Informal Powers in the Workplace
Both formal and informal powers can be useful in achieving organizational goals. However, it is important to understand the differences between the two types of power in order to use them effectively.
Formal powers are often used in situations where there is a clear chain of command. For example, a manager may use legitimate power to make decisions about their department or team. Coercive and reward powers can also be effective in motivating employees to achieve specific goals.
Informal powers, on the other hand, are often used in situations that require collaboration, persuasion, and influence. For example, a team leader may use their expert or referent power to motivate team members to work together to achieve a common goal. Charismatic power can also be effective in inspiring employees to believe in a new vision or strategy.
In conclusion, understanding the differences between formal and informal powers is essential for effective leadership in the workplace. By using both types of power strategically, leaders can motivate and inspire employees to achieve organizational goals.
