Horti-Business Management (2+0)

Types of Power

• Legitimate power – It is the power derived by virtue of his position in the organization – Head of the Department, Dean of a college
• Expert power – The expertise, specialized knowledge and skill possessed by an individual enables him to have an edge over others and others look to him for guidance –– doctors, scientists, engineers, astrologers, lawyers
• Referent power – Leader who are able to influence the action of their followers – politicians, statesman – M.S.Swaminathan,
• Reward power – A person exercises power because of his ability to give rewards for employees based on their performance - Head of the organization / division
• Coercive power - A person exercises power because of his ability to threaten or strongly persuade people – anti-social elements, autocratic managers, employee unions (because of large number of employees)
In an organization, the managers mostly exercise power by virtue of their position in the organization. He will use this power to make employees to perform efficiently to achieve the objectives of the organization.