Principles of Management CLEP Practice Exam 2026 - Free Management Practice Questions and Study Guide

Institutional power, as defined by David McClelland, refers to the ability to influence others to achieve results, making it pivotal in organizational dynamics. This concept is part of McClelland's theory of needs, particularly relating to the need for power.

When someone possesses institutional power, they leverage their influence not just for personal gain but to enhance the effectiveness of their team or organization. This aligns with the broader objectives of the organization, focusing on collaboration and shared goals rather than individual recognition. Individuals with this type of power are often seen as effective leaders who can motivate others, promote teamwork, and foster an environment conducive to achieving organizational objectives.

While the other options touch on aspects of leadership and influence, they do not capture the essence of institutional power. For instance, creating a cohesive team, leading with charisma, and making decisions independently are important attributes or skills but do not specifically denote the capacity to influence others towards collective results, which is central to McClelland's definition of institutional power.