To be an effective leader is to

understand how to wield power and

what it means when you do so. Being
a leader is more than managing
employees and tasks. Leadership is
a skill. That skill requires both
knowledge and practice to make it
effective. The use of power is one of
many tools at a leaders disposal.
Power in itself is neither good nor bad as it is
the wielder that determines if power is used to
serve or to undermine a companies goals.
Power is much more than simple confidence.
It is a necessary tool for enacting change
within your sphere of influence .
If used effectively, the use of power will gain
respect and achieve results. If used
improperly, the misuse of power can
hamstring an organization and lead to
stagnation.
How To Use Power More Effective?
Of course, it is not only leaders that posses
power. Each of us has power and each of us
has the power to choose how our power is
used. Knowing what the types of power are
and how they can be used (or abused) is
important to our ability to make decisions
that affect both our sphere of influence and
our personal core values. Let us explore in
detail the types of power in order from least
effective to most effective.
 1. Coercive Power
Coercive Power is often the least effective but
most employed (and abused) type of power in the
corporate world.
Coercive Power is forcing someone to do
something against their will or setting up
“consequences” to employee actions.
Coercive leaders rely on threats, bullying, and “or-
else” language to “motivate” those that are beneath
them.
This type of behavior often leads to fear,
dissatisfaction, and resentment.
 2. Reward Power
Reward Power is another widely used
method in business today. The results of
Reward power are mixed and it is
therefore the second weakest form of
power.
Reward Power is the concept of do this
and get that. Or (said another way) if you
do this, you will receive something in
return.
 The danger!
If you over-used the power of reward, the
effect may be weakened.
 In many cases, the employees begin to
experience frustration when the reward does
not grow larger. Other times, the reward can
be taken for granted by the person giving the
reward as just compensation for a task when
the employee feels that the reward is not
sufficient enough to compensate for the
requested task.
 3. Legitimate Power
Legitimate Power is the power of
position or role. This is the typical
“command and control” structure that is
employed by the Military world.
Legitimate Power acts as a formalized
way of ensuring that there is someone to
make a decision (good or bad) and that
someone is responsible.
Legitimate power can seem arbitrary and
when a person looses or changes positions
or roles within a company, this type of
power does not move with them.
By itself, this powers ability to persuade
and convince others is weak. However,
when combined with the next three
powers, Legitimate Power can be an
excellent first step toward effective
leadership.
 4. Referent Power
Referent Power is the “cult of
personality”. This is the power and ability
for an individual to attract others and to
build loyalty within them. 
Referent Power is also the power of
respect.
This can occur through time if a leader is
successful and has a well known track-
record of success. 
Referent Power is also created
through the values of the individual.
Some folks are born with “It”. Others
study leadership and develop
themselves to be able to exercise this
form of power effectively.
 5. Informational Power
Informational Power is the power of
having information that another does not
have, or, the distribution of information as
a means of effecting change.
This could be positive or negative
propaganda, knowledge of an opponents
strategy, or detailed information that is
used in decision support.
Informational Power is in the possible
use of information from persuading
“by the numbers” or making up a
“statistic” to manipulate opinions.
(Some say that statistics are a precise
and logical method for stating a half
truth, inaccurately).
Informational Power can be used to
measure and improve tasks, processes,
and strategies.
 6. Expert Power
Expert Power is when an individual possesses in-
depth information, knowledge, or expertise in
the area that they are responsible for.
This type of power is often the most effective
type of power. This is the Software Architect, the
lead engineer, the CFO, CTO, Doctor, or other
highly skilled and highly trained employee.
Because the person has this high level of
expertise, they can often persuade others do to
things for them using trust and respect. This
expertise and therefore this type of power are
greatly valued in leadership roles.
Excellent leaders seek to use the most
effective type of power at the correct
time. They also seek others that
understand how leadership and vision
work in order to setup a framework
for success.