The bottom-line profits, financial goals, the market, customers, employees, and the board of directors pull leaders in the direction they want and need. The pressure to get things done and get results motivates a leader to capitalize on every possible opportunity in the marketplace. The pressure of business is what strains a leader’s leadership. Referent power is based on respect for the leader, you identify with this leader’s values, personality, and the way they conduct themselves. Expert is based on expertise and the demonstration of knowledge and the ability to act. Informational power is based on having key or significant information. Sometimes leaders suppress information for this purpose, however, informational power can be based on key insights, knowledge, experience, or expertise that no one else has. The risk here is transparency. The lack of transparency is not good. Reward power is when a leader has permission to reward employees with a raise, bonus, or a day off. A reward is about rewarding others and benefiting the hard work that an individual has achieved their goal or accomplished a result.
