It is important to understand the type of power you have as a leader or manager because it affects how you apply it to get others to perform as they desire.
To review, see Sources of Power.
Organizations themselves exert influence and leadership within their respective markets and community contexts. As a leader, the ability and talent for getting others to do what you expect or require of them can be a challenge and a skill in and of itself. Leaders and Managers need to understand the importance of collaboration, communication, and teamwork. There is a greater chance of organizational success when all involved believed their actions or efforts will lead to gains.
The ways we act, feel, or think all have some impact on our organization. We want to be positive and supportive leaders with the intent that those emotions will be reflected in our employees who, in turn, will inspire others (such as customers) to support the company or organization. Our emotional states transfer to those around us. We want to exhibit a high level of emotional intelligence to help us avoid issues or problems as we interact with other people or organizations.
Each of us has our own unique personality, which means that leaders and managers have to get to a point where they understand how their employees think or feel to get the best performance from them that they can. We cannot stress enough how important it is to account for and properly utilize one's interpersonal skills. What you do, how you act, or how you express yourself could mean the difference between developing a successful employee and/or losing out on a potential successful employee.
Bill Joy identified that an employee grouping often is more successful when they are left on their own with little boundaries or structure. The members know their roles, accept their responsibilities, and perform accordingly. Jim Whitehurst came to understand that, as a COO, it was necessary to give up the "advantages" he had held in a previous similar position. He found that being one of the team yielded greater results than if he had constantly reinforced the fact that he was the person in charge. The use of an "open organization" model has led to a situation where boundaries exist, but, as the leader, he still helps the members of the organization effectively do their jobs. He cites that his research is not conclusive, and as a leader attempting to interact with an established group, he still has a lot to learn.