This system is much more in line with the proper concept of authority. If a lower rank feels that the higher rank has no authority over them, then the higher rank has no authority, even though they may have the power to beat the lower rank into the mats. The lower rank can ignore any commands given to them by the higher rank until that higher rank uses his or her powers to enforce the commands. When such a situation occurs, where authority is lost and power must be used, it becomes a power struggle. The outcome of a power struggle is very uncertain.
Power comes from many different sources.
Rank in any organization has no correspondence with all the sources of power. A lower rank may hold great powers which give that person a decided advantage. Authority, though, provides great power when given to someone. Still, it must be given, and it can be taken away at any time by a simple change in the beliefs of the giver. Such was the case with Oliver North.