Types of power in project management – which of them work best?

12 August 2025

In the world of project and organizational management, authority does not always mean just formal control. There are several different forms of influence that leaders can use to guide a team, motivate project members, and effectively achieve goals.
Discover the 5 key types of authority that are applicable in practice.

📘 What is authority in the context of management?

Authority is the ability to influence the behavior of others. It can be based on position, relationships, knowledge, or control over rewards and punishments. In project management, recognizing the type of authority being used helps understand team dynamics and improve leader communication and effectiveness.

🔹 1. Formal Authority (Legitimate)

Source: position or title in the organization 👤
Typical Example: project manager, director

📌 Characteristics:

Based on hierarchical structure.
Automatically assigned upon taking on a specific role.
Allows decision-making, enforcement of duties.

⚠️ Note: It alone is not sufficient to gain authority – requires support from other forms of authority.

🌟 2. Referent Authority

Source: charisma, personal authority, relationships🤝
Typical Example: mentor, inspirational leader, highly valued individual

📌 Characteristics:

Based on recognition and likability.
People voluntarily follow the leader.
Works strongly in cooperative-oriented teams.

💡 Application: building a culture of trust, influencing without issuing commands.

🧠 3. Expert Authority

Source: knowledge and expertise📚
Typical Example: specialist, analyst, consultant

📌 Characteristics:

Authority stems from high level of knowledge.
Leader becomes someone others turn to for advice.
Can have significant influence despite lack of formal position.

🎯 Application: making key technical decisions, mentoring.

🎁 4. Reward Authority

Source: ability to offer rewards💸
Typical Example: HR manager, project manager with budget

📌 Characteristics:

Positively motivates – through bonuses, recognition, development.
Can work short-term if not supported by values and goals.

🧩 Application: motivation, reinforcing desired behaviors.

⛔ 5. Coercive Authority

Source: ability to impose penalties⚠️
Typical Example: boss using threats, penalty system

📌 Characteristics:

Based on fear of consequences.
Can lead to quick results, but lowers morale in the long run.
Least effective in project management based on cooperation.

⚠️ Application: only in crisis situations or when other forms are ineffective.

📊 Comparison of types of authority:

Type of Authority	Source	Advantage	Risk
Formal	Position in the organization	Clarity, structure	Weak motivation without relationships
Referent	Charisma and relationships	Loyalty and engagement	Difficult to build without authenticity
Expert	Knowledge and expertise	High expertise authority	Narrow application
Reward	Bonuses, recognition	Positive motivation	Costly, short-lived
Coercive	Fear of punishment	Quick response in crisis	Resistance, morale decline

🧠 Summary

Understanding and properly applying different types of authority is key to effective management of a project team. The most effective leaders can balance formal, expert, and referent authority, avoiding excessive use of coercion. Building authority based on knowledge and relationships creates a lasting, healthy organizational culture.

🔑 Conclusion:
👉 Focus on skills and authentic relationships, and formal authority will become just a tool – not the end goal itself.

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