Power

In every organization there exists a culture (or social mythology) that operates as a basis of power. The real power in an organization rests in its social mythology or culture. Legitimate leaders are simply an extension or figurehead of the organization's culture. Empowerment by the organization is necessary to develop a leader's legitimacy.

Leadership

A natural process of maintaining the organization's culture involves the empowerment of leaders. Leadership is a communal relationship between the organizational members and its leader. The implication of this communal relationship is that the organization, as a whole, defines the range of acceptable behavior in a legitimate leader. Power in terms of leadership can be defined as a leader who acts as a guiding head influencing or swaying the members of a group.

Authority

Authority is defined as the formulation and enforcement of formal organizational policies. This would include for example accounting procedures and personal policy. Organizational authority therefore is a finite concept. Because authority is finite, formal and rigid it requires the subordination of lower status organizational members to be effective. The concepts of manager and authority are, however, separate. An example of this would be a meter maid who has authority but is not a manager.

Manager

Hierarchical organizational theory puts a finite amount of authority in the hands of the organization's highest leader. This authority is then distributed to other subordinate leaders in the organization. The lowest member of the organization is seen as having no authority. The essential elements of management are a well defined sphere of authority and the subordination of the rank and file. The manager sees the organization as something they control rather than being controlled or constrained by the organization.

Visionary

The visionary by nature, or definition, holds views different from the organization as a whole. The visionary may be able to escape the limitations of management and leadership, but does not escape the social control exerted on the individual. The role of a visionary is one that sees the overall organization from a perspective greater than self.