Influence is a constant presence in any collaborative environment, guiding decisions and shaping team dynamics. This ability to affect the behaviors and opinions of others appears in two distinct forms: formal and informal. Understanding how each type originates, how it is used, and the effects it produces is helpful for navigating organizational life. This article will explore the key distinctions between these two modes of influence.
What is Formal Influence?
Formal influence is directly linked to an individual’s designated position within an organization’s hierarchy. It is the power granted by a specific title and the authority that comes with it. This influence is conferred by the company’s structure, rules, and procedures, giving an individual power over certain resources, processes, and people.
A manager uses formal influence when they assign tasks to their team, approve a departmental budget, or set a project deadline. These actions are backed by the full authority of the organization. This form of influence creates order and operational control by establishing clear lines of accountability for performance and outcomes.
What is Informal Influence?
Informal influence is the ability to guide others without the backing of an official title. This power is not assigned by the organization but emerges from an individual’s personal attributes and relationships. Its foundation lies in the trust and respect a person earns from colleagues. People follow informal influencers because they want to, not because an organizational chart says they must.
Its sources are varied, stemming from deep expertise, strong communication skills, or a positive attitude. For example, an experienced engineer with no direct reports may be the first person consulted on a technical project. These individuals sway decisions through persuasion and the strength of their reputation.
Key Differences Between Formal and Informal Influence
Source of Power
The primary distinction lies in their origin. Formal influence is granted by the organization and is tied to a specific role or title, making it an external, top-down authority. Conversely, informal influence is personal and internally generated. It is earned through an individual’s actions, character, and expertise, and is rooted in the trust and respect of colleagues.
Scope and Direction
The reach of each type of influence is also different. Formal influence operates within defined boundaries, limited to a specific department, team, or set of direct reports. Its direction is vertical, flowing downward from a superior to a subordinate. A vice president’s formal influence, for instance, is confined to their division.
Informal influence is far more fluid and is not constrained by the organizational chart. It can flow in any direction—upward to superiors, downward to junior colleagues, and sideways to peers across different departments. This makes its scope potentially organization-wide.
Stability
Formal influence is inherently tied to a job title and is therefore temporary. When an individual leaves their position, the formal influence associated with that role is lost. The authority remains with the position, to be passed on to the next person who holds the title.
Informal influence is connected to the individual, not the role, making it more stable. It is portable and endures as long as the person maintains the trust and respect of their colleagues. An employee will carry that informal influence with them even if they change departments or roles.
Method of Exertion
The methods used to apply influence also differ. Formal influence is exercised through directives, commands, and official policies. A manager can assign work or conduct performance reviews because their position grants them the right to do so, and compliance is based on official authority.
Informal influence works through persuasion, suggestion, and modeling behavior. An informal leader persuades colleagues through well-reasoned arguments or by setting a positive example. Their impact comes from inspiring others to willingly adopt their ideas, making it a pull rather than a push dynamic.
The Impact of Each in the Workplace
Both forms of influence serve distinct but complementary functions. Formal influence provides operational efficiency and accountability. It creates the structure for clear direction, task delegation, and performance management. This top-down authority ensures that strategic goals are translated into concrete actions with clear lines of responsibility.
Informal influence supports a positive and collaborative workplace culture. It fuels innovation by creating an environment where ideas can be shared freely, regardless of title. Informal leaders help build community, enhance employee engagement, and facilitate smoother communication, building the trust necessary for collaboration.
Can You Have Both?
Yes, an individual can and should possess both formal and informal influence. The most effective leaders do not rely solely on the authority of their title but augment it with the respect earned from their teams. A manager with formal power can give directives, but one who also has informal influence can inspire their team to execute those directives with commitment.
Combining both types of influence creates a strong leadership dynamic. When a person in authority is also seen as credible, approachable, and invested in their colleagues, their ability to lead is magnified. Their requests are met with greater buy-in and their teams are more motivated. Relying only on a title can lead to compliance, but blending it with personal influence cultivates followership.