Leadership, Power and Influence Tactic

Leadership, Power and Influence Tactic

Introduction

In this assignment, we have discussed the Sources of Power of a CEO. CEO's role in using his leadership skills by applying various influence tactic to prevent his company from business related issues of Operations, Administration and Ethical conducts.

Sources of Power of a CEO

It has been seen that in some firms CEO take all kinds of significant decision. Where as in some firms, decisions are taken by the mutual understanding of all top executives. These significant decisions may affect the firm's performance and variables to a larger extent. So we can say that CEO's decisions have a strong impact on firm's performance, as he possesses such a role with which he can influence the people to follow his directions.

Power can be defined as one's ability to over come resistance consistently. So we can say that a powerful CEO must possess the capability of influencing significant decisions in his firm consistently despite of existence of opposition. Powers of CEO may come from various formal and informal sources (Pfeffer. J., 1992).

Sources or bases of power have been essentially explained by the famous social Psychologists French and Bertram Raven in 1959, which are described below:

Legitimate Power

It is the source of power that a CEO or any executive gains from his position and role in the firm. It makes the sub ordinates and other employees to comply with the decisions of CEO. Position power is a form of legitimate power that arises from the functional hierarchy in the organization. It causes the sub ordinates and employees to obey the instructions of CEO. Reciprocity power is a form of legitimate power that makes the employee do whatever CEO instructs as a result of done good and beneficiary for the employees by the CEO, so employees become obliged to return back the favor by serving his commands. Equity power, a form of legitimate power, which represents the compensatory form in a way that CEO's hard work has proved to be very beneficial for company thus, he requires now that all employees obey him as a result of compensation. Legitimate power of Responsibility is also called power of powerless. It states the sense of obligation to others who depend on others and are unable to help themselves.

Coercive Power

It is the forceful style of power that CEO of a company possesses by threatening and imposing his commands forcefully on employees. It is considered as an abusive power and can cause unhealthy behavior.

Reward Power

CEO has the power to offer rewards, perks and benefits to employee in order to influence them or make them do things as per his instructions. It can come in form of bonuses, raises, promotions, training opportunities etc.

Expert Power

CEO possesses expert power to a greater extent as they have the vast experience and knowledge of numerous skills in the field. So its considered that their decisions are wise enough and in favor of the company.

Referent Power

It is the power that CEO exercises through maintaining personal relationships, ...