University of Sydney · S1 2026 · FACULTY OF BUSINESS & ECONOMICS

BUSS2000 · Leading And Influencing In Business

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Chapter 8 of 11 · BUSS2000

Leadership, Power & Influence

This chapter defines leadership as the capacity to influence — not as a title — and works through the four families of leadership theory (trait, behavioural, situational/contingency, transformational), authentic/ethical leadership and leading with humility, and French & Raven's six bases of power. It is one of the richest sources for the exam's Q2 (a non-uni leadership experience), where the marks come from justifying a leadership style against the context (situational logic) and from correctly sorting the six power bases into position vs personal and arguing which a powerless newcomer can realistically build.

In this chapter

What this chapter covers

  • 01Leadership = the capacity to influence others, independent of formal position
  • 02Trait theories — leaders have distinguishing characteristics
  • 03Behavioural theories — leadership as learnable task- vs people-orientation
  • 04Situational & contingency theories — best style depends on context and followers
  • 05Transformational vs transactional leadership (the four I's)
  • 06Authentic/ethical leadership & leader humility (Owens & Hekman 2016)
  • 07French & Raven's six bases of power: Legitimate, Reward, Coercive, Expert, Referent, Informational
  • 08Position/structural vs personal/cognitive power; influence strategies (Galinsky & Kilduff 2013)
Worked example · free

Distinguish position power from personal power (French & Raven application)

Q [6 marks]. A new graduate joins a team with no title and no authority over more senior colleagues. Using French & Raven's six bases of power, classify the bases into position vs personal, and argue which a powerless newcomer can realistically build to lead. (Classify, then reason about which to build.)
  • +2List and sort the six bases: position/structural bases = Legitimate, Reward, Coercive; personal/cognitive bases = Expert, Referent, Informational (French & Raven 1959; Raven 1965).
  • +1Diagnose the newcomer's situation: she has no legitimate, reward or coercive power — the position bases all require formal authority she does not have.
  • +2Argue what she CAN build: expert power (deep, demonstrated skill), referent power (being respected and liked through how she shows up), and informational power (controlling and sharing useful information).
  • +1Evaluate: this is why 'leadership ≠ title' — influence without authority is built through the personal/cognitive bases, which anyone can develop regardless of rank.
An answer that correctly buckets the six bases into position (Legitimate/Reward/Coercive) vs personal (Expert/Referent/Informational), recognises the newcomer lacks all the position bases, and argues she can build expert, referent and informational power — demonstrating that influence without authority is built, not granted.
Sia tip — The marks are in the position-vs-personal split plus the argument about which a title-less person can build. Reciting all six bases without the split, or without applying it to the powerless-newcomer case, leaves the application marks on the table.
Glossary

Key terms

Leadership as influence
The unit's core definition: leadership is the capacity to influence others, not a function of formal position or title. Anyone can learn the knowledge, skills and qualities to lead — 'leadership starts with you' — which is why self-leadership precedes leading others.
Trait vs behavioural leadership theories
Trait theories hold that leaders possess distinguishing characteristics; behavioural theories hold that leadership is a set of learnable behaviours, typically split into task-orientation and people-orientation (e.g. the Ohio State / Michigan style dimensions). Behavioural theories opened leadership to development rather than birth.
Situational / contingency theories
There is no single best leadership style — the most effective style depends on the situation and the followers (e.g. the Fiedler and Hersey-Blanchard lineages). The reflective move is to justify a chosen style by matching it to the context.
Transformational leadership
Leadership that lifts followers beyond self-interest through the four I's — idealised influence, inspirational motivation, intellectual stimulation and individualised consideration — contrasted with transactional leadership, which exchanges rewards for performance.
French & Raven's six bases of power
Legitimate, Reward and Coercive (position/structural bases) plus Expert, Referent and Informational (personal/cognitive bases) — French & Raven (1959) plus Raven's (1965) addition of Informational. You can build the personal/cognitive bases without any formal title.
Leader humility (Owens & Hekman 2016)
Honesty, humility and integrity in a leader — admitting limits, spotlighting others' strengths and modelling teachability. Leader humility spreads by contagion and a collective promotion focus, improving team performance, and reframes humility as performance-enhancing rather than self-effacing.
FAQ

Leadership, Power & Influence FAQ

Can you be a leader without a formal title or authority?

Yes — this is the unit's central claim. Leadership is defined as the capacity to influence, and French & Raven's personal/cognitive bases (expert, referent, informational power) can be built by anyone regardless of rank. A graduate with no title leads by being genuinely skilled, respected and well-informed, which is influence without authority.

Which leadership theory should I apply in an exam answer?

It depends on the scenario, which is the point of the situational/contingency family — there is no one-best-style. For inexperienced, low-confidence followers, a directive behavioural style plus self-efficacy building fits; for a seasoned, motivated team, a transformational style and delegation fits. The mark-earning move is to name the style AND justify the match to the context, not to assert one style is always best.

What is the difference between transformational and transactional leadership?

Transactional leadership works through exchange — rewards (or sanctions) for meeting agreed targets. Transformational leadership lifts followers beyond self-interest through the four I's (idealised influence, inspirational motivation, intellectual stimulation, individualised consideration), inspiring commitment to a shared vision. Most effective leaders use a blend, but transformational is the modern endpoint the unit emphasises.

How are leadership, power and influence related?

Leadership is the capacity to influence; power is the resource that makes influence possible; and the bases of power (French & Raven) are where that resource comes from. Strong answers connect them — e.g. a humble leader (Owens & Hekman 2016) builds referent power, and a new graduate builds expert and informational power to influence without legitimate authority.

Study strategy

Exam move

Prepare this chapter for the exam's Q2, where a non-uni leadership experience (a sports team, a job, a club) usually fits best. Memorise the four leadership families and, crucially, practise the situational move: name a style AND justify it against the context. Master French & Raven by always sorting the six bases into position vs personal and rehearsing the powerless-newcomer argument (build expert/referent/informational). Keep leader humility (Owens & Hekman 2016) ready as an ethical-leadership move you can tie to a real behaviour. On the A4 sheet, note 'trait/behavioural/situational/transformational' and 'F&R: position (LRC) vs personal (ERI).'

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