Future Business Leaders of America (FBLA) Organizational Leadership Practice Test

What type of power is derived from an individual's position within an organization?

1. Legitimate Power

2. Coercive Power

3. Reward Power

4. Referent Power

The correct answer is: Legitimate Power

Legitimate power is defined as the authority that is granted to an individual based on their position within an organization. This type of power is recognized and accepted by others as it stems from the formal management hierarchy. When an individual holds a position of power, it entails certain responsibilities and the ability to make decisions that influence others in the organization. This power is often associated with titles like manager or supervisor, where the individual's role gives them the right to direct activities, allocate resources, and enforce policies. In contrast, coercive power relies on the ability to enforce penalties or punishments, and reward power focuses on the capacity to provide benefits or rewards. Referent power is derived from personal attributes and the respect or admiration that others have for the individual. While these other forms of power are influential in their own contexts, legitimate power specifically correlates to the formal authority that comes from one's organizational position.