Power: the capacity to influence others who are in a state of dependence. The fact that the target of power is dependent on the power holder does not imply that a poor relationship exists between the two. Power can flow in any direction in an organization. Power is a broad concept that applies to both individuals and groups. Legitimate power: power derived from a person"s position or job in an organization. Organization"s judgment about who is formally permitted to influence whom (authority). Moving up the organization"s hierarchy, members possess more and more legitimate power. Some people are more likely than others to invoke their legitimate power, look, Reward power: power holder can exert influence by providing positive outcomes and preventing negative outcomes. Managers are given the chance to recommend raises, assign preferred tasks to employees, etc. Also, any organization member can exert influence over others with praise, compliments, which also constitute rewards.