Final answer:
Employees likely follow Lucia's directives because of her legitimate power as CEO, which is supported by transactional leadership styles and may be reinforced by her support of work-family balance and adherence to EEOC guidelines.
Step-by-step explanation:
Employees are likely to follow what Lucia says because she has legitimate power as the CEO of Down Home Fashion. Legitimate power stems from the official leadership position Lucia holds, which is recognized by employees. A transactional leadership style also contributes to this power, where Lucia may use a system of rewards and punishments to achieve organizational goals. This form of leadership is contrasted with transformational leadership, where leaders strive to inspire and bring about change through charisma, inspiration, intellectual stimulation, and individualized consideration.
It could also be related to employees seeking work-family balance while possibly telecommuting, which grants them flexible work hours, a benefit potentially sanctioned by Lucia. Furthermore, the U.S. Equal Employment Opportunity Commission (EEOC) plays a role by ensuring Lucia adheres to fair practices that do not discriminate against workers, which can foster an environment where subordinates respect and follow the legitimate power of their CEO.