Many individual contributors have power, but they aren’t managers and they have no formal power. What they have is personal power, which comes from an individual’s unique characteristics. There are two bases of personal power: expertise and the respect and admiration of others. Expert power is influence wielded as a result of expertise, special skills, or knowledge. As jobs become more specialized, we become dependent on experts to achieve goals.

Physicians, computer specialists, tax accountants, economists, industrial psychologists, and other specialists wield power as a result of their expertise. Referent power is based on identification with a person who has desirable resources or personal traits. If I like, respect, and admire you, you can exercise power over me because I want to please you. Referent power develops out of admiration of another and a desire to be like that person. It helps explain, for instance, why celebrities are paid millions of dollars to endorse products in commercials.