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368 PART 4: THE LEADER AS A RELATIONSHIP BUILDER
Scarcity refers to whether the resource is easy or difficult to obtain. A re-

source that is difficult or expensive to acquire is more valuable and creates more

dependency than one that is widely available. In Ireland, for example, an infl ux of
information technology and finance companies over the past 15 years has left top

managers scrambling to find employees with skills and experience in these fi elds.
Irish engineers who once had to come to the United States to get jobs now fi nd
themselves highly valued in their own country, and U.S. technology and fi nance
professionals are learning that companies in Ireland will gladly help them with the
necessary work permits, visas, information on taxes and real estate, and moving
37
expenses to get them to sign on. Leaders and employees with specialized knowl-
edge in U.S. firms also serve to illustrate this aspect of dependency. In companies

moving toward e-business, some young Internet-literate managers have gained
power over senior leaders who have no computer expertise.
The third characteristic, nonsubstitutability, means that leaders or employees
with control over resources with no viable substitute will have more power. These
resources may include knowledge and expertise as well as access to people with
high power. For example, an executive secretary that has daily access to the CEO
might have more power than middle managers, who must compete for a few min-
utes of the top leader’s time.

Sources of Leader Power in Organizations

An understanding of dependency and control over resources provides the foun-
dation for examining several sources of leader power in organizations. The fi ve
types of power we discussed earlier are derived from either formal position or the
leader’s personal qualities. These sources provide a basis for much of a leader’s

influence. In organizations, however, additional sources of power and infl uence

have been identified. The strategic contingencies theory identifi es power sources
not linked to the specifi c person or position, but to the role the leader plays in
the overall functioning of the organization. Sources of power in this regard are
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interdepartmental dependency, control over information, centrality, and coping
with uncertainty, as illustrated in Exhibit 12.5.
Exhibit 12.5 Strategic Contingencies that Affect Leader Power in Organizations

Interdepartmental
Dependency

Control over
Information
Increased
Power
Organizational
Centrality

Coping with
Uncertainty