Leadership represents a process that involves the non-coercive influence on others to achieve certain goals. The function of a leader is to create a vision for the future and direct followers towards actions that enable its realization. By motivating and inspiring, the leader encourages people towards continuous organizational and individual progress and supports them in overcoming any obstacles they may encounter. A leader consciously or unconsciously chooses an approach to influence subordinates. On one hand, influence is based on rewards and punishments, while on the other, the leader's personality and charisma lead others to follow willingly. In both cases, the possession of power and authority comes into play. Different ways of exerting power provoke different reactions from people. Subordinates value the leader's expertise the most, which implies a high level of knowledge and skills in the field of action, thereby ensuring trust and reputation. A leader gains the legal right to issue orders and make decisions by ascending to a high position in the company's hierarchical ladder. One situation where power and authority are demonstrated is conflict resolution, considered one of the most challenging and important tasks of a leader. To turn negative stimuli into positive outcomes, a leader uses communication skills, empathy, and the ability to motivate and encourage. The goal is to establish a functional working environment that maximizes productivity and utilizes employees' potential for the benefit of the company and individual advancement. The research part of the paper includes a survey offered to leaders and their subordinates in three companies engaged in different activities: s. Oliver, Extreme Sport d.o.o., and Kraš d.d. 54 respondents provided their answers to questions regarding leadership and the influence of the leader's power and authority on the overall work of the company. Based on the given theoretical overview and obtained research results, their consistencies, or deviations, are determined.