Strategic Business Leader · Leadership and organisational culture

Power, Authority and Leadership Influence in ACCA SBL

Updated 11 October 2026 · Fact-checked

Power is the ability to get others to act as you want. Authority is power that people accept as legitimate, usually from a formal position. Leaders use sources of power such as French and Raven's five bases and Handy's types. To answer exam questions, identify the source, apply it to the case and judge its effect.

Understand Power, Authority and Leadership Influence

Power is the ability to make someone do something they would not otherwise do. Authority is the right to give orders, which comes from a formal position and is accepted by others as legitimate. A manager can have authority without much real power. A respected junior expert can have power without authority. This difference is a common exam point.

Influence is wider than both. It is the ability to affect what others think, decide or do, often without formal orders. Leaders need influence because they cannot rely on instructions alone, especially with skilled staff, partners or stakeholders outside their line control.

French and Raven set out five bases of power. Legitimate power comes from position. Reward power comes from controlling things people value, such as pay, promotion or bonuses. Coercive power comes from the ability to punish. Expert power comes from skill or knowledge. Referent power comes from being admired or liked, so people want to identify with you. Raven later added informational power, which comes from controlling access to information.

Handy groups power into types: physical power (force), resource power (control of resources others need), position power (power from formal role or rank), expert power (specialist knowledge), personal power (charisma) and negative power (the ability to stop things happening, for example by blocking or delaying). In general discussion, the way power is used tends to affect people differently: it can bring forced compliance, bargaining or genuine commitment. Treat this as a general link, not an exact Handy classification.

In SBL, the point is not to list theory. You must show how a leader in the case gains and uses power, what the effect is on followers and strategy, and what risks arise. Coercive and legitimate power may deliver compliance but weaker commitment. Expert and referent power tend to deliver commitment but depend on the person and can be lost.

Key rules to remember

French and Raven bases of power: Legitimate, Reward, Coercive, Expert, Referent (plus Informational added later by Raven); The original model has five bases. Say clearly that informational power is a later addition.
Handy's types of power: Physical, Resource, Position, Expert, Personal, Negative; Use Handy's labels when the question names Handy. Do not mix them with French and Raven's labels without saying so.
Power versus authority: Authority = power + legitimacy (accepted right to act); Authority is a form of power that followers accept as rightful. Power does not need acceptance.
Power and likely response: Coercive/legitimate → compliance; expert/referent → commitment (typical, not certain); This is a general tendency. State it as likely, not as always true.

How to solve Power, Authority and Leadership Influence questions

Use this method for any question on power, authority or influence in the case.

1Read the requirement and note the verb: identify, explain, evaluate or recommend.
2Find evidence in the scenario of how the leader gets people to act: position, pay, threats, skill, personality or control of information.
3Match each piece of evidence to a named source of power (French and Raven or Handy, as the question asks).
4Separate power from authority: is the leader's right to act accepted, or is compliance forced or based on skill?
5Assess the effect: compliance or commitment, short or long term, and impact on culture, change and strategy.
6Judge risks and limits, for example overreliance on one base, loss of expertise, resentment or ethical concerns.
7Give a reasoned recommendation linked to the case, such as building expert or referent power or changing the style.
8Write in the format asked (report, email, memo) to earn professional skills marks.

Quickest way: Evidence, label, effect

When to use it: Use when time is short, or when the question is only worth a few marks.

Underline each action or trait in the case that shows how the leader influences others.
Label each with its power base in a few words.
Write one sentence per base: what it is, the case evidence, and the effect on followers.
Close with one judgement: which base is overused or missing, and what to do about it.

Common mistakes in Power, Authority and Leadership Influence

Listing the five bases with definitions but no case evidence.
Students learn the theory and treat it as a recall question.
Fix: Quote or paraphrase the scenario for every base and explain its effect on the people and the organisation.
Treating power and authority as the same thing.
In everyday speech they are used as synonyms.
Fix: State that authority is legitimate power attached to a role and accepted by others. Show a case where they differ.
Mixing French and Raven labels with Handy's types without saying so.
Both models share names such as expert power but differ elsewhere.
Fix: Use the model the question names. If you use both, state which label belongs to which model.
Assuming legitimate or coercive power always works.
Students overlook the difference between compliance and commitment.
Fix: Explain that these bases may secure obedience but can reduce motivation and trust. Link to the case outcome.
Ignoring the ethical side of using power.
Students focus on the model, not the professional judgement SBL tests.
Fix: Comment on fairness, misuse of information or threats, and the effect on culture and stakeholders.
Stopping at identification and giving no recommendation.
Students run out of time or think description is enough.
Fix: Finish with advice: which power bases the leader should build or reduce, and why, in the context of the case.

Worked examples

Example 1

The founder of a family-owned logistics company decides all matters personally. Staff obey because he owns the firm, controls all pay rises and has dismissed managers who disagreed with him. Explain the sources of power he uses and evaluate the likely effect on staff.

Show the solution

Identify the bases from the evidence. Ownership and his role give legitimate power (French and Raven), or position power (Handy).
Control of pay rises is reward power (French and Raven), or resource power in Handy's terms.
Dismissing dissenters is coercive power, and shows the ability to punish.
Note that authority exists because staff accept his right as owner, but coercion suggests some compliance is based on fear, not acceptance.
Assess the effect: staff are likely to comply, but may hold back ideas, avoid risk and leave if they can. This weakens innovation and information flow.
Recommend that he builds expert and referent power, delegates decisions and uses rewards linked to clear performance, so that commitment replaces fear.

Answer: He relies on legitimate, reward and coercive power. This secures compliance but is likely to reduce commitment, openness and retention. He should add expert and referent influence and delegate.

Example 2

A newly appointed finance director, aged 34, has little formal seniority but is the only person who understands the company's new data analytics system. Colleagues consult her before major decisions and many say they admire her openness. Analyse her sources of influence using Handy's types of power. If a source does not fit Handy's types, say which other model's label you use.

Show the solution

Her formal role gives some position power, but the case says seniority is limited, so this is not her main source.
Her unique knowledge of the analytics system is expert power in Handy's model. Others depend on her skills.
Control over what the system shows gives her influence over information that others need. Handy's resource power covers things like money, materials, staff and equipment, and the case does not make information a controlled resource of that kind. So label this informational power, and say that the label comes from Raven's later addition to French and Raven, not from Handy.
Colleagues admire her openness. In Handy's model, personal power means charisma, and the case gives no evidence of charisma, so do not label this personal power. Admiration and being liked corresponds to referent power in French and Raven, so use that label and say it comes from the other model.
Evaluate: her influence is based on skill and respect, so it is likely to produce commitment. It is vulnerable if others learn the system, or if she leaves, because expert power depends on scarcity.
Recommend she shares knowledge through training to build trust, while building formal authority through the board's support.

Answer: Under Handy, her influence rests mainly on expert power (her system knowledge), with limited position power. Her control over what the system shows is informational power (Raven), and the admiration for her openness corresponds to referent power in French and Raven, not Handy's personal power, as charisma is not evidenced. It builds commitment but is fragile because it depends on scarce knowledge. She should formalise authority and share skills.

Exam tips

Always tie each power base to evidence in the case. Marks go for application, not definitions.
Name the model the question uses. If it says Handy, use Handy's types and do not rely on French and Raven alone.
Discuss both the benefit and risk of each power source, and say whether it creates compliance or commitment.
Distinguish clearly between power and authority when the scenario involves a person with a title but no real influence, or the reverse.
Finish with a practical recommendation in the required format, to gain professional skills marks for commercial acumen and communication.

Practice questions from Leadership and organisational culture

Power, Authority and Leadership Influence in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

ACCA Applied KnowledgeAuthority, Power, Responsibility and Delegation

Power, Authority and Leadership Influence: frequently asked questions

What are French and Raven's bases of power?

They are legitimate, reward, coercive, expert and referent power. Raven later added informational power. In SBL, you should link each base to evidence in the scenario and explain the effect on followers.

What is the difference between power and authority?

Power is the ability to get others to act as you want, whatever the reason. Authority is power that others accept as rightful, usually because of a formal position. A leader can hold authority but have little power, or power without authority.

What are Handy's types of power?

Handy describes physical, resource, position, expert, personal and negative power. Negative power is the ability to block or stop things. Use his labels when the question refers to Handy.

Which source of power is best for a leader?

No single base is best in every case. Expert and referent power usually build commitment, while legitimate, reward and coercive power can secure compliance. A strong answer judges which mix suits the situation and followers.