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The question of "What is Power" has been considered by many thinkers, and does not have a simple answer. The power held by an individual may be drawn from many different sources, and how it operates is a complex aspect of human relationships. How power is exercised depends not only on those holding it but also on the legitimacy accorded to them by those being controlled. Belief structures, culture and even our language affect perceptions of power and how individuals offer others power over them.

Within organisations, leadership and power are closely linked. The concept of social power refers to power exercised through the influence of the thoughts and actions of others, such as between a manager and their subordinates. A study of social power by French and Raven indentified five (later six) bases of power that fall into two categories.

Positional power sources include legitimate power, reward power and coercive power.

Legitimate power is given to a leader by an organisational structure or hierarchy. It is the power associated with a title or position that is afforded to a person while they hold that position.

Reward power and coercive power are also related to a leader's position, and depend on the extent to which they have authority to provide rewards and enforce punishments to obtain desired behaviours. The effect of rewards may be highly variable, and even senior leaders may only have limited reward power. Coercive power is that of the gaoler, the sergeant or the boot-camp trainer. Its use is rarely appropriate in the work environment.

Business leadership requires more expansive and influential forms of power than that simply related to their position. Several forms of personal power are identified by French and Raven.

Expert power stems from having skills, knowledge and understanding exceeding that of those around you.  Demonstrated expertise lends others to seek your leadership in an area, and creates trust and respect in your opinions.  Gaining a reputation for logical thinking allows your power base to be expanded in other areas.

Referent power is related to the concept of a leader's charisma. It is based on the power people will afford to someone because they are charming, likeable or respected. Celebrities wield considerable referent power, which is utilised widely for product promotion. Because of its influence, referent power may be considered as a responsibility. Alone, it represents a potentially unstable power base but in combination with other forms of power it may be used to good effect.

Information power was later added to French and Ravens categories. It refers to the power derived from holding information that is critical to achieving organisational objectives.

Understanding the different forms of social power allows us to better understand the ways in which other people may be influencing us and how we may be able to develop our own expert and referent power to become more effective and positive leaders.