Power is the capacity to influence decisions and leadership is about the process of influence. French and Raven identified sources or bases of power. Reward power is the power that produces positive benefits or rewards. Expert power is influence that results from expertise, special skill, or knowledge. Referent power is the power that arises from identification with a person who has desirable resources or personal traits.
Most effective leaders rely on several different bases of power.
B. Leading through empowerment. Managers are increasingly leading by empowering their employees. The increased use of empowerment is being driven by two forces. The need for quick decisions by those people who are most knowledgeable about the issues is one reason. Second is the reality that organizational downsizing has left managers with larger spans of control and in order to cope with these demands, managers are empowering their employees.