Types of Informal Power in an Organization

Informal power is the ability to influence others without relying on formal authority or a designated position. It is derived from various sources, including personal qualities, expertise, and relationships. Unlike formal power, which is structured and defined by an organization’s hierarchy, informal power is more fluid and can emerge from any level within an organization.

Key Facts

  1. Expert Power: This type of power is based on an individual’s knowledge, skills, and expertise in a particular area. People with expert power are often sought after for advice and guidance, and their opinions carry weight within the organization.
  2. Referent Power: Referent power is derived from an individual’s likability, charisma, and ability to build strong relationships with others. People with referent power are influential because others respect and admire them, and they are often able to persuade and motivate others to take action.
  3. Information Power: Information power is based on an individual’s access to valuable or critical information within the organization. People with information power can control the flow of information and use it strategically to influence decision-making and outcomes.
  4. Connection Power: Connection power is derived from an individual’s network and relationships with influential people both within and outside the organization. People with connection power can leverage their relationships to gain support, resources, and opportunities.
  5. Reward Power: Reward power is based on an individual’s ability to provide rewards or incentives to others. This can include promotions, bonuses, recognition, or other forms of positive reinforcement. People with reward power can influence others by offering desirable outcomes in exchange for cooperation or desired behaviors.
  6. Coercive Power: Coercive power is based on an individual’s ability to impose punishments or negative consequences on others. People with coercive power can influence others through fear, intimidation, or the threat of negative outcomes.

It is important to note that informal power can be dynamic and can shift within an organization based on various factors such as changes in relationships, expertise, or the emergence of new leaders.

There are several types of informal power that can be observed in organizations:

Expert Power

Expert power stems from an individual’s specialized knowledge, skills, or expertise in a particular area. People with expert power are often sought after for advice, guidance, and insights. Their opinions carry weight and influence within the organization due to their perceived credibility and competence.

Referent Power

Referent power is derived from an individual’s personal qualities, such as charisma, likability, and the ability to build strong relationships with others. People with referent power are influential because others respect, admire, and identify with them. They can motivate and persuade others to take action based on their personal influence rather than their formal authority.

Information Power

Information power is based on an individual’s access to valuable or critical information within the organization. People with information power can control the flow of information and use it strategically to influence decision-making and outcomes. They may possess knowledge that others lack, giving them an advantage in shaping opinions and guiding actions.

Connection Power

Connection power is derived from an individual’s network and relationships with influential people both within and outside the organization. People with connection power can leverage their relationships to gain support, resources, and opportunities. They may be able to influence decisions by connecting people, facilitating collaborations, or accessing information through their network.

Reward Power

Reward power is based on an individual’s ability to provide rewards or incentives to others. This can include promotions, bonuses, recognition, or other forms of positive reinforcement. People with reward power can influence others by offering desirable outcomes in exchange for cooperation or desired behaviors.

Coercive Power

Coercive power is based on an individual’s ability to impose punishments or negative consequences on others. People with coercive power can influence others through fear, intimidation, or the threat of negative outcomes. They may use their authority to enforce compliance or punish non-compliance.

It is important to note that informal power can be both positive and negative. When used responsibly and ethically, informal power can contribute to effective leadership, collaboration, and innovation within an organization. However, when used for personal gain or to manipulate others, informal power can have negative consequences for the organization and its members.

References:

  1. Study.com. (2023, March 21). Formal and Informal Power Structures in the Decision-Making Process in Social Work. Retrieved from https://study.com/academy/lesson/formal-informal-power-structures-in-the-decision-making-process-in-social-work.html
  2. Davoren, J. (2019, March 7). The Difference Between Formal & Informal Power in Organizations. Small Business – Chron.com. Retrieved from https://smallbusiness.chron.com/difference-between-formal-informal-power-organizations-20648.html
  3. Eduard. (2018, August 9). Formal vs. Informal Power: Two Paths to Social Success. People Skills Decoded. Retrieved from http://www.peopleskillsdecoded.com/formal-vs-informal-power/

FAQs

1. What is informal power?

Informal power is the ability to influence others without relying on formal authority or a designated position. It is derived from personal qualities, expertise, and relationships.

2. What are the different types of informal power?

Some common types of informal power include expert power, referent power, information power, connection power, reward power, and coercive power.

3. How does informal power differ from formal power?

Formal power is structured and defined by an organization’s hierarchy, while informal power is more fluid and can emerge from any level within an organization.

4. What are the benefits of informal power?

Informal power can contribute to effective leadership, collaboration, and innovation within an organization. It can also help individuals achieve their goals and objectives by influencing others without relying solely on their formal authority.

5. What are the potential drawbacks of informal power?

When used responsibly and ethically, informal power can be beneficial. However, it can also be used for personal gain or to manipulate others, which can have negative consequences for the organization and its members.

6. How can individuals develop informal power?

Individuals can develop informal power by building expertise, establishing strong relationships, accessing valuable information, expanding their network, and using their influence responsibly.

7. How can organizations leverage informal power effectively?

Organizations can leverage informal power by recognizing and supporting individuals who possess it. They can also create a culture that values collaboration, open communication, and the sharing of information, which can help informal power to flourish.

8. What are some examples of informal power in action?

Examples of informal power include a respected mentor influencing the career development of a junior colleague, a knowledgeable employee providing guidance to their peers on a complex project, or a well-connected individual facilitating a collaboration between different departments.