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Leadership & Ethics for Managers: Using Sources of Power

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Leadership Challenge: Using Sources of Power Ethically

The Management of a Multi-national company has hired me as a management consultant to help the Organization look into an area of concern. With many of the recent corporate scandals, the CEO is wondering how she can avoid these sorts of problems within her company. She has asked me to research and prepare a report that summarizes the various kinds of power she has at her disposal and how this power could be effectively utilized to avoid these sorts of problems within her own company.

1. Compile a list of myriad of leadership models that discuss sources of power, and explain the sources of the power that the CEO of a large company typically has at her disposal. It should also include the myriad of leadership models- "French and Raven Model" etc.

2. Describe how these powers can be used to avoid the various operational, administrative, and ethical problems experienced by companies. I need to also identify three specific business problems that can be addressed through the use of "influence tactics." For each specific problem, I need to provide the CEO with descriptions of the influence tactic that should be used, the source of power behind that influence tactic, and why it is believed that this influence tactic will effectively address that problem.

3. The Influence Tactics supported by a Power Source.

4. The five sources available to the CEO are Legitimate, Reward, Coercive, Referent and Expert.

OBJECTIVE: The Objective of this work requires the following:

1. Explain the role of individual differences and traits in leadership.

2. Apply ethical reasoning skills and ethical theories to business situations.

3. Recognize situations that present potential legal and ethical issues and develop solutions for those issues.

4. Apply critical thinking skills to analyze business situations.

5. Include the five sources available to the CEO: Legitimate, Reward, Coercive, Referent and Expert

6. Demonstrate an understanding of the material or an ability to disseminate the theory

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Solution Summary

The solution discusses sources of power for a CEO of a large company nad how this power can help address issues in the organization: legtimate power, expert power, reward power, coercive power and referent power. This solution is 1000 words.

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Sources of Power for CEO of a large company:

As per French and Raven model, there are basically five sources of power, which are described below. If one is aware of these sources of power, he or she can understand the reasoning behind being influenced by others. Further, one can also recognize own sources power, as well as develop leadership skills by using own sources of power and using those power in the most appropriate and effective manner.

The first source of power for the CEO is legitimate power, which is also known hierarchial power because it stems out from the position of the CEO in the organization. It is easily recognized by organizational employees.

The second major source of power is expert power which comes from the knowledge or expertise possessed by the CEO. It is a power which is derived from the personal expertise and hence, distinct from other powers such as legitimate power. Such expertise is valued by the organization, individuals, etc. with whom CEO interacts and thus, is another source of power.

The third source of power is reward power. This power arises from the CEO's ability to reward other's behavior. It stems out of the legitimate power in some way because managers or CEO's have some degree of control over rewards stemming out of their position such as bonuses and incentives.

Another source of power is coercive power, which is opposite of reward power in the sense that it arises due to the individual's ability to punish other individuals.

Another source of power is referent power, which is based on the individual's ability to influence followers due to the follower's loyalty or admiration of the individual. For example, ...

Solution provided by:
Sheetal Jain, PGDM
Education
  • BComm, University of Delhi
  • Post Graduate Diploma in Management (Equivalent to MBA), All India Management Association
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