"Authority without wisdom is like a heavy axe without an edge, fitter to bruise than polish" - Anne Bradstreet (Famous Poet)
Authority in leadership encompasses both formal and informal dimensions. Formal authority is derived from legal or organizational structures that grant individuals the power to make decisions, enforce rules, and lead teams. Informal authority, on the other hand, is earned through personal influence, trust, and respect from peers and subordinates. This article explores both forms of authority, discussing how they are achieved, built, and utilized effectively in leadership roles.
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French, J. R. P., & Raven, B. (1959). The bases of social power. In D. Cartwright (Ed.), Studies in social power (pp. 150-167). Ann Arbor, MI: Institute for Social Research.
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If you have ever worked in government, you will have experience working with leaders who have legal authority that is defined and measured. Each level of authority granted has requirements and is auditable. Being a leader in those organizations provides challenges and simplicities due to being highly regulated. Leaders working under the rule of law should know how to apply their leadership.
In business, you will have legal requirements that guide your leadership, such as fiduciary duty, or the obligation to act in the best interests of the business. An organization may also establish policies and manuals that regulate the business, and actions allowed or not allowed. What are your business’s termination criteria? As a leader, have you published guidelines for handling sexual harassment, equal opportunity, and conflict resolution?
It is critical, for any organization, to have these sets of rules to govern all aspects of your business. Whether you are a government entity or a small business, having proper rules can make or break you. It can also make or break your leadership roles. If your leadership has no weight or merit, you will struggle to instill consequences. Leadership is innately an agreement to allow someone to lead.
Does your business also have rules on parallel department interactions or peer leadership? Who is the top leader, when everyone has the same authority? Who has the authority to make that call as well? Who is in charge when a specific leader is absent? If a leader leaves, are you prepared to replace them with a worthy individual or will you need to look outwards? All these questions and more should have answers.
Understanding Formal Authority.
Formal authority in leadership is typically conferred through a legal framework or organizational hierarchy. This form of authority is often delineated in job titles, organizational charts, and official documents, outlining specific roles and responsibilities. Leaders with formal authority have the power to make decisions, allocate resources, and enforce policies within their scope of responsibility (French & Raven, 1959). Formal authority is not a new concept in business.
French and Raven discuss two types of social power that I believe are tied to formal authority. The first is legitimate power which they note is the most complicated and is based on organizational values (French & Raven, 1959). This is why value statements are important in developing organizational principles so that employees emulate legitimate power. As a leader, do not leave legitimate power to chance or others' whims.
The second social power is reward power which is defined as the “ability to administer positive valences and to remove or decrease negative valences” (French & Raven, 1959). Valence in this meaning is power or actions, in other words, rewards and punishment. When a person has authority or agreeance to give rewards or the power to take things away from you, there is formal authority allowing that to happen. When someone is not approving your vacation time, they have reward power. When they give you a bonus, they have reward power as well.
We will discuss the other three social powers in the informal section of this article, but by now, you can see that building a solid structure of your business, delegating the proper authorities in that structure, and tying these to the values of your company will lead to success. If left ambiguous or forgotten, employees will struggle to delineate work and how to report. You don’t want employees reporting to five bosses as much as five leaders thinking they have appointments over five of the same employees.
Achieving Formal Authority.
Achieving formal authority generally involves a combination of qualifications, experience, and organizational processes. This can include:
Value Statement: We discuss this in depth in Week 1: Visionary Leadership. I recommend starting with that article to learn how to do this properly. As we discussed above, building the right vision will provide those foundational values that uphold legitimate power.
Educational Credentials: Many leadership positions require specific academic qualifications. For example, a Chief Technical Officer (CTO) typically requires training, certifications, or advanced schooling. Developing hiring practices and accurate position descriptions will ensure you hire the right individuals to meet the leadership requirements. It is important to understand that experience can overshine education. You can overcome this obstacle by having the right credentials, certifications, and education.
Professional Experience: Accumulating relevant work experience is crucial. Leaders often rise through the ranks by demonstrating their competence and achieving results (Yukl, 2013). Hiring inside the organization is a great way to build formal and informal authority, but don’t overlook hiring outside of the organization. Building formal authority involves not just obtaining the position but also effectively wielding the power it confers. Hiring the right experienced leader can help achieve it.
Appointment or Election: Formal authority is granted through official appointment or election by a governing body or higher management (Mintzberg, 1973). This is done through delegation letters, appointment orders, or even statements from senior leaders. It is better to have these appointments in writing to ensure a solid reward and legitimate social power adherence.
Regulations, Manuals, and Policies: Take the time to develop policies with authority. Be as direct as possible so employees have fewer misunderstandings. These don’t need to be overly legal in tone or writing style. The simplest statements such as this person is in charge of this section are sufficient.
Enforcing Policies Fairly: Fair and consistent enforcement of policies and rules helps maintain credibility and respect (Lunenburg, 2012). Leaders must execute the policies and values they established. If you don’t, new standards will form and employees will find leadership’s power illegitimate.
Lastly, once your organization has established formal authority, it is up to the leaders to adjudicate violations. Leaders should use reward power to create incentive structures for compliance. Leaders do not need zero tolerance, judgement is based on the weight of the infraction, frequency, and remorse. Remember that even a simple acknowledgment of working outside boundaries can steer the team back in the correct direction. Many of the informal authority techniques below will assist in managing a quality workplace even with the strictest formal authority.
Informal Leadership and Authority.
Informal authority arises from personal influence rather than official power. It is earned through interpersonal relationships, expertise, and the ability to inspire and motivate others. Informal leaders may not hold formal titles but can significantly impact team dynamics and decision-making processes (Kellerman, 2004). We see this playing out currently with the company Blackrock. It is an investment firm that has no formal authority over businesses but wields informal authority through portfolio management and loans to enforce illegitimate policies.
You earn informal power through success. Using logic and understanding to sway others to your side, or just showing others the way. Your effectiveness provides an example to others. Once people begin to see that success, they follow. Either to revel in the spoils of victory or to assist in the accomplishments. I have always believed that there is no better way to build a team than through success.
French & Raven provide three informal types of social power. The first is coercive. This does not have to be negative but does involve manipulation. You could also think of this power type as the ability to influence. Using logic, facts, or critical thinking to convince others to join you. It involves dependent decisions between those who lead and follow and is a basis for team dynamics.
The second type of social power is referent. “A desire to become closely associated with” (French & Raven, 1959). This type is closely related to mentorship and friendship. A loved one has a certain power over us because we don’t want to harm them or we trust they have our best interest in mind. We provide them the power to make decisions because we feel their decisions are correct. A shared agreement based on charisma and history.
The last type of social power is an expert. Simply put, a doctor or lawyer gives you advice that you follow because they are credentialed to know (French & Raven, 1959). We see this power play out in many ways, it is undoubtedly the most recognizable informal power type. This type can include experience, institutional, and intuitive knowledge. We lead through our expertise by studying and doing.
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