Position Power vs. Personal Power in Organizations

Introduction to Power in Organizations

What is power? In an organization, power is the ability or potential of a leader to have influence over followers or subordinates. Power does not actually have to be exercised to be effective: so long as the potential to exercise influence is recognized and appreciated by followers, it functions the same as actually being influential. In this sense, power is very often simply a perception that followers hold with regard to a leader. If they view the leader as having power, then he has it. If not, then he does not. Power is a transactional quality in that it is determined by the flow of relationships, regardless of whether those relationships are merely perceived or are actually real.

The difference between position power and personal power is this: position power stems from the top of an organization and flows downward to the lower-level manager who occupies the "position" in question. That manager derives his power and authority from upper-level management; it is granted by someone higher in the chain of command. Personal power, by contrast, is given by one's followers and moves upward in a bottom-up direction. It is based on the actions of the leader and whether he appeals to those he leads. If he does, then he wields personal power. These are the two main sources of power in organizational life.

Position Power vs. Personal Power

Managers in any position have position power by virtue of their role. That does not necessarily mean they also have personal power. A manager with position power may rank highly within the chain of command, yet if he has no followers he has no personal power. Conversely, an individual with personal power might command a large following but have no formal authority within the organization — that is, no position power.

The two forms are not always entirely distinct, separate, or united. They are different and largely independent of one another, yet there can be overlap: a manager with position power may also have personal power by earning the loyalty and support of followers, and vice versa. Leadership scholars have long noted that the most effective leaders tend to draw on both sources simultaneously.

Independence and Overlap Between the Two

Although position power and personal power are independent, they can interact and affect one another in meaningful ways. If one possesses a great deal of personal power — a large base of followers and supporters — it can lead upper management to grant that individual greater position power. Conversely, if one holds position power but lacks genuine personal power, that deficit can ultimately threaten and erode his standing in the formal hierarchy as well. Neither type is dependent upon the other, but the presence or absence of one can exert real pressure on the other over time.

Conclusion

In conclusion, power is the potential to influence people, and there are two primary types: position power and personal power. Position power is granted from the top down through the organizational hierarchy. Personal power is earned from the bottom up through the actions and appeal of the leader. The two can interact with and influence one another, but neither is inherently dependent upon the other. In some cases there is overlap, where an individual with position power also commands personal power — and it is in those cases that leadership tends to be most durable and effective.