Step 1: Understand the nature of authority.
Authority refers to the power or right granted to a leader to make decisions and give commands. Leaders typically hold formal authority in the organizational hierarchy.
Step 2: Evaluate the options.
- Formal authority is granted through the organizational structure and policies.
- Informal and personal authority are not official designations and do not grant decision-making powers in the same way as formal authority.
Step 3: Conclude.
A leader typically has formal authority, which is recognized by the organization.
Final Answer:
\[
\boxed{\text{Formal}}
\]