The Three Types of Power in a Company

byPaulChetwyn

2.1K followers

1 week ago

Power exists in every organization—whether acknowledged or not. It shapes decisions, influences culture, and determines how people show up to work each day. But not all power is the same. In fact, most companies operate through three distinct types of power, each with its own strengths, risks, and purpose.

Understanding these forms of power is essential for leaders who want to build healthy organizations, for employees who want to navigate workplace dynamics wisely, and for companies that want to grow without breaking trust.

1. Positional Power (Authority Power)

What it is
Positional power comes from title, role, or rank. It’s the formal authority granted by the organization.

Examples

• A CEO setting company direction
• A manager approving budgets or promotions
• A supervisor enforcing policies

What it does well

• Creates structure and order
• Enables quick decisions
• Establishes accountability

Where it fails

• Can create fear-based cultures
• Encourages compliance instead of commitment
• Breaks down when respect is absent

Key insight:
Positional power can make people obey—but it can’t make them care.

2. Expert Power (Knowledge Power)

What it is
Expert power is earned through skills, experience, and competence. People listen because you know what you’re doing.

Examples

• The IT specialist everyone depends on
• A sales leader who understands the market deeply
• A technician who knows the system inside out

What it does well

• Builds credibility and trust
• Improves decision quality
• Encourages collaboration

Where it fails

• Can lead to knowledge hoarding
• Creates bottlenecks
• Risks arrogance if unchecked

Key insight:
Expert power influences decisions even without a title.

3. Relational Power (Influence Power)

What it is
Relational power comes from trust, relationships, reputation, and influence. It’s the power people give you.

Examples

• The team member others naturally follow
• A leader who inspires loyalty
• An employee with strong cross-department connections

What it does well

• Creates buy-in and alignment
• Strengthens culture
• Enables change without force

Where it fails

• Can turn into favoritism
• Fuels office politics
• Undermines leadership if misused

Key insight:
Relational power moves people willingly—not because they have to, but because they want to.

How the Three Types of Power Work Together

Type of Power What It Controls Best Use

Positional Authority & structure Direction & accountability

Expert Knowledge & outcomes Quality & innovation

Relational Trust & influence Culture & engagement

The most effective leaders don’t rely on one—they balance all three.

Power in Modern Organizations

The old belief was simple: power comes from position.
The modern reality is different:

• Titles alone no longer inspire loyalty
• Knowledge without humility creates distance
• Influence without integrity creates chaos

Today’s strongest leaders combine:

• Positional power to set direction
• Expert power to earn respect
• Relational power to build trust

Final Thought

Titles can command obedience.
Knowledge can command respect.
But only trust can command loyalty.

In the end, the real question isn’t who has power in a company—
It’s how that power is used, and who it ultimately serves.