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Five Sources Of Leader Power
 
 
(a) Explain FIVE (5) sources in which leader power has been identified. Include specific examples of each source of power to support your answer. (15 marks)

Power is a measure of a person's ability to control the environment around them, including the behavior of other persons. Power is not exclusive to leaders and managers; subordinates also possess a degree of power.

The five sources of leader power that has been identified are legitimate power, reward power, coercive power, referent power and expert power.
The meaning of legitimate power means that the leader has the right or the authority to tell others what to do and employees are obligated to obey with legitimate orders from the leader. For example: whenever the boss asked his employee to do something, the employee must obey it as long as it’s under the laws. When a staff person lacks of the authority to give an order to a particular manager that means that the staff has no legitimate power over the manager.
The second power, reward power relies on the promise of or the ability to deliver a reward in return for desired behavior. The challenge for leaders is to understand what is of value to each follower, and when and how to deliver rewards in meaningful, sustainable, and practical ways. For example, a manager works hard to get recognition from the boss but if the company dictates that everyone receive the same recognition then a leader’s power decreases because he or she is unable to give the recognition that the manager wants.
Coercive power is the power that comes from a person’s authority to punish. From the perspective of followers, it’s one of the most obvious types of power a leader has.
However good leaders use coercive power only as a last resort: In today’s sophisticated and com ...
 
 
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Classic Airlines

This paper will cover an in-depth look and analysis of Classic Airlines, a twenty five-year-old passenger airline. Classic Airlines commands a fleet of more 375 jets that serve 240 cities with more than 2300 daily flights making it the fifth largest airline in the world (University of Phoenix, 2007). Classic has grown to an organization of 32,000 employees, and last year, it earned $10 million on $8.7 billion in sales (University of Phoenix, 2007).
The paper will give the reader background information concerning the current situation the company faces, determine the key issues in the situation, opportunities the company has to address, who this will affect, and the desired end-state goals of the company.
Situation Background : "Increased uncertainty about flying has affected industry stock prices across the board, and Classic has seen a 10% decrease in share prices in the past year. With a concerned investment community on the watch, the airline industry operates under a microscope, subject to scrutiny from all sectors. Not surprisingly, the negativity from Wall Street to the media to the public has affected employee morale, which is the lowest its ever been. Consumer confidence also appears to be waning. By January 2005, Classic's declining Classic Rewards program measured a 19 percent decrease in the number of Classic Rewards members, and 21 percent decrease in flights per remaining member. Clearly, loyal customers were jumping ship and the ones still aboard seemed to be flying less frequently -- or at least less frequently with Classic Airlines....

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