Paper Example Undergraduate 641 words

The input "N A" is too vague to recover a meaningful subject.

Last reviewed: August 1, 2009 ~4 min read

¶ … CEO of a company has six major sources of power. The first five are defined by French and Raven (1959) and the last in the list is provided by Montana and Charnov (2008).

Legitimate Power refers to power of an individual because of the relative position and duties of the holder of the position within an organization.

Referent Power means the power or ability of individuals to attract others and build loyalty. It's based on the charisma and interpersonal skills of the power holder.

Expert Power is an individual's power deriving from the skills or expertise of the person and the organization's needs for those skills and expertise.

Reward Power depends upon the ability of the power wielder to confer valued material rewards.

Coercive Power means the application of negative influences onto employees.

Information Power is derived from possession of important information at a critical time when such information is necessary to any organizational functions

Leaders can exercise these powers to positively influence employees to conduct themselves according to the operational, administrative, and ethical standards of an organization.

These powers facilitate various influence tactics managers can use to bring about the change necessary to address these problems.

Consider an organization that is not making money and that wants its employees to take a pay cut even though employees have expressed that they do not support it. In this situation, the leader be forced to give the order that all employees must accept a ten percent decrease in pay. This is called a direction tactic which comes from the leader's legitimate power to take the action. The direction tactic is appropriate to implement the pay cut because the action is good for the organization, but is less desirable as perceived by the employees (Boulgarides and Cohen, 2001).

Another example calling for an influence tactic is a public retailer with in-store sales that are suffering because of poor customer service. This has been a problem for some time. In response, the leader may decide to institute an employee stock plan that links shareholder value with long-term rewards for its employees so that they can share in the benefits of growth and appreciate the connection between their individual performance and the retailer's performance (Boulgarides and Cohen, 2001). This is an involvement tactic which comes from the leader's reward power. In this instance, ownership through stock has a good chance of success because people have a tendency to work and fight much harder for things that they own (Boulgarides and Cohen, 2001).

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PaperDue. (2009). The input "N A" is too vague to recover a meaningful subject.. PaperDue. https://www.paperdue.com/essay/ceo-of-a-company-has-20199

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