Option D

The vice-chairman (who is not your direct boss!) appreciates you -> referrent

 The answer is Option 1 - Legitimate. I myself initially thought the answer was Option 4, but the answer key (I think it was PMStudy) says Legitiimate. YOu have Formal (Legitimate) power because you are being consulted for performance appraisals. Because you have formal power, you can manage interpersonal relationships.

3. Penalty.

Refer Below...

Legitimate power: the ability to gain support because project personnel perceive the project manager as being officially empowered to issue orders.

Reward power: the ability to gain support because project personnel perceive the project manager as capable of directly or indirectly dispensing valued organizational rewards (i.e., salary, promotion, bonus, future work assignments).

Penalty power: the ability to gain support because the project personnel perceive the project manager as capable of directly or indirectly dispensing penalties that they wish to avoid. Penalty power usually derives from the same source as reward power, with one being a necessary condition for the other.

Expert power: the ability to gain support because personnel perceive the project manager as possessing special knowledge or expertise (that functional personnel consider as important).

Referent power: the ability to gain support because project personnel feel personally attracted to the project manager or his project.

I understand why the "blue eye" question here says it's Penalty ( or Reward )

Here is a question from PmZilla that looks similar but doesnt have same answer..

E2 Q12

Your project has tremendous support from Senior Management. The vice president often comes down to discuss things with you and shows great deal of respect for you and frequently appreciates your efforts in front of entire team. this will help you manage your interpersonal relationships, because you have the following power: Select the best answer:

A ) Expert

B ) Charismatic

C ) Legitimate

D) Reward

Answer is Legitimate (C)

I dont know why it is not Reward,  because the previous question with the blue eye.. it's Penalty AND Reward, because the guy can do both..  here, no idea what is the difference

thanks