Formal Authority: Do You Even Need It?

Anyone who has thought, “if only I had more authority, I could get things done around here,” has been (or will be) let down to find out that this is not the case. As one Forbes author said, “Great leadership has very little to do with how much formal authority one has. Yet, most people complain about not having enough authority to make a difference.”

While formal authority means you are entitled to make decisions, delegate, and manage conflicts, it’s not that simple. Relying too much on formal authority alone can lead to aversion to authority. Competing priorities, relationships, alliances, past decisions, cultural norms, and a seemingly endless stream of opinions will complicate matters, making it near impossible for you to make decisions at will without some consequence.

In the following article, we’ll discuss the difference between formal and informal authority, why some employees are more resistant to authority than others, and situations where formal authority does come in handy.

Formal Authority vs. Informal Authority

Formal authority is the power granted to an individual with specific roles and responsibilities, typically those in management or leadership, by their organization to make decisions, delegate work to employees, and resolve conflicts. 

Whereas informal authority refers to the influence one has, regardless of their title, and is based on the strength of their relationships with colleagues and team members, track record, and ability to gain buy-in and support for their ideas by speaking with clarity.

Charismatic leadership often plays a key role here, as individuals with a compelling vision, strong communication skills, and the ability to inspire others can exert significant influence without formal authority.

For example, individuals who do not hold a leadership title but have been with the organization a long time, have cultivated relationships based on mutual trust and respect, and can clearly articulate their needs and their validity, often have a great deal of informal authority that allows them to influence decisions more than the average person might be able to.

Authority vs Leadership

Authority and leadership are different ways of influencing others at work. Authority is the official power someone has because of their job title, like a manager who can make decisions and give orders.

Leadership, on the other hand, is the ability to inspire and guide people, which comes from personal qualities like communication and vision. So, while authority depends on your position in a company, leadership is about how you motivate and influence others, regardless of your title. A good leader often uses both their authority and leadership skills to be effective.

Formal Authority vs Formal Leadership

Formal leadership and formal authority are related concepts but they are not exactly the same. Formal leadership is about influencing and guiding a team towards achieving goals, while formal authority is about the power to make decisions and enforce compliance.

While formal leadership involves broader responsibility, formal leadership specifically refers to the official power to make decisions.

Why Do Some People Resist Those With Formal Authority?

For some, being told to do something by someone with formal authority can create a “don’t tell me what to do” response. Technically speaking, this is called control aversion.

It is a psychological and clinical phenomenon that describes the negative response one has when an external force (for example, a toxic boss) has control over their decisions. This can impede important social interactions, such as those between people leaders and their direct reports.

Autocratic leadership, with its focus on centralized decision-making and minimal input from team members, can often lead to control aversion.

In a fascinating study, it was found that the more subjects perceived their choice restriction as a sign of distrust from another, the more negative their response was. In contrast, the higher they rated understanding of the other persons’ request in the controlled condition, the less negative their response was.

Is It Possible To Have Power But No Authority?

Individuals can have power without having formal authority at the workplace. This type of power often comes from personal influence, expertise, or relationships rather than an official title or position - formal authority.

Here are several ways that individuals can have power without authority:

1. Expertise power: When someone is highly knowledgeable or skilled in a specific area, others may look to them for guidance and decisions, giving them influence.
2. Referent power: This comes from personal traits or relationships. If people respect, like, or admire you, they may be willing to follow your lead even if you don't have a formal title.
3. Informal leadership: Some individuals naturally take on leadership roles within groups due to their ability to inspire and motivate others, even if they don't have formal authority.
4. Network power: Having a strong network of contacts and good relationships with key people can give someone significant influence within an organization.

Lacking Authority In The Workplace

When individuals lack authority, they may show poor performance in the organization. For example, without authority, an individual may not have the power to make important decisions. In such cases, they often have to rely on those with formal authority to approve actions or make decisions.

Moreover, individuals with a lack of authority may find it hard for their voice -  ideas and suggestions to be taken seriously. They may have less access to important information and decision-makers.

Lack of authority may also have an impact on morale and motivation, also frustration. For example, they may feel undervalued or overlooked. This may eventually lead to demotivation and decreased job satisfaction. Or, the inability to effect change or make decisions can lead to frustration and disengagement at work.

3 Situations Where It is Helpful to Have Formal Authority

1. To remove roadblocks for an employee 
2. To stand up for an employee
3. To manage workloads and redistribute work

To Remove Roadblocks

It is likely that when you delegate a time-bound task or project to an employee, they will encounter roadblocks. Roadblocks may be anything from a colleague making it difficult to collect information to a missing piece of technology. Simply put, roadblocks impede your employee’s ability to complete the task you assigned them to the best of their ability.

You should use the formal authority granted to you to remove the roadblock, or if that’s not possible, find a workaround solution for the employee. This is a positive way to use your formal authority, as it ensures the task gets done and shows your employee that you are willing and ready to help them succeed. 

To Stand Up For An Employee

In the unfortunate case that your employee is spoken down to, taken advantage of, or chastised by a teammate, peer, or leader, your formal authority may be required. While you may encourage your employees to stand up for themselves, depending on the person, history, or situation, this is not appropriate, and therefore, they should be able to count on you to intervene on their behalf.

For example, say your employee is approached by one of their peers who angrily accuses them of something they had no part in, and this is not the first time it has happened. In the past, the employee has stood up to their peer, but this time it has gone too far. Your formal authority may be needed to stand up for your own employee and set boundaries with the peer about how problems should be addressed.

To Manage Workloads and Redistribute Work

In a position of formal authority, you have been entitled to delegate as you see fit. This is an especially good ability if one of your employees is working an unhealthy amount to keep up with their workload while their peers easily complete their tasks within official working hours.

In this case, you can use your formal authority to redistribute and delegate the work according to the schedules, abilities, and tools of those on your team. Remember that you should explain to everyone why you saw it necessary to redistribute the work and emphasize that doing so is helping the individual and the entire team.

Influencing Others Without Formal Authority

It's possible for an individual to influence others in the workplace without having formal authority. By building strong relationships, demonstrating expertise, communicating effectively, leading by example, and using emotional intelligence, you can gain trust and respect to make an influence.

Offering support, solving problems, promoting collaboration, and maintaining a positive reputation further enhance your ability to influence and inspire colleagues.

Conclusion: Do You Need Formal Authority as a Leader?

In a leadership role, it helps to have formal authority, especially when you need to remove roadblocks, stand up for your employees, or redistribute work. Though, you don’t always need to flex your formal authority to get things done, make decisions, resolve conflicts, or delegate, if you hone and effectively use your leadership, influence, and communication skills.