What type of power is based on having information that someone else needs?

Informational power arises from possessing knowledge or information that others require to achieve their goals or fulfill their tasks. When an individual holds insights or data that are critical to decision-making or problem-solving, they hold leverage over those who need that information. This type of power is particularly influential in organizational settings, where access to key information can determine outcomes, streamline processes, or enhance efficiency.

For example, a manager with specific insights into market trends or internal processes wields informational power. Employees or stakeholders who rely on that leader for guidance or data acknowledge that they depend on their knowledge, thereby granting that manager an influential position within the organization.

The other options represent different dimensions of power within an organizational context. Legitimate power stems from a person's position within the hierarchy, connection power derives from the relationships one has, and reward power is based on the ability to provide incentives or benefits. While all forms of power can be effective, informational power specifically hinges on the possession of valuable information, making it crucial in various organizational scenarios.