Final answer:
A leader can derive power from positional, expert, referent, and information sources. For a manager making cost-cutting decisions, the authoritarian leadership style might work best.
Step-by-step explanation:
A leader can derive power from various sources:
- Positional power: This is derived from the leader's formal position within the organization. It includes legitimate power (based on having authority over others), reward power (based on the ability to provide rewards), and coercive power (based on the ability to punish or impose negative consequences).
- Expert power: This is derived from the leader's knowledge, skills, and expertise. People turn to leaders with expertise and rely on their guidance and advice.
- Referent power: This is derived from the leader's personal qualities, such as charisma, charm, and likability. People are influenced by leaders they admire and want to emulate.
- Information power: This is derived from the leader's access to valuable information and their ability to control and disseminate that information.
For a manager whose firm is forced to make cost-cutting decisions, the autocratic or authoritarian leadership style might work best. In this style, the leader makes decisions without consulting others and imposes their decisions on the team. This style allows for quick and decisive action, which can be crucial in a cost-cutting situation. However, it is important for the leader to balance this style with effective communication and empathy to avoid alienating the team.