Coercive Power

1. Coercive Power Coercive power is the ability of a manager or authority figure to persuade another individual to deliver by using the threat of punishment or fear. As Chief Human Resource OfÏcer, Sharon displayed this type of power when she was dealing with Maria the quality assurance engineer. Sharon was faced with the dilemma of giving Maria a performance improvement plan or terminating her. Maria was great at her job in the past, but her skill set did not match what was now needed by Netflix and she was struggling. Sharon used coercive power to terminate Maria but give her a severance package. This power was important in this setÝng because she avoided a lawsuit. “Give her a great severance package—which, when she signs the documents, will dramatically reduce (if not eliminate) the chance of a lawsuit” (The woman behind Netflix Culture, nd). 2. Legitimate Power Legitimate power is power is cooperation based solely on the authority figure position or title. As Chief Human Resource OfÏcer Sharon displayed this type of power by developing and implementing the new policies and procedures within the firm. For example, she implemented “Act in Netflix Best Interest” when it came to travel and expenses by reducing cost and shifting the responsibility to frontline managers. Employees generally complied with Sharon’s policy because of her title. She was the Chief Human Resource OfÏcer. This power was important in this setÝng because Sharon reduced cost for Netflix. 3. Reward power Reward power is when the leader or authority figure implements some type of reward. In the past, we called this dangling the carrot in front of someone. For example, she removed formal time off for salaried employees, and “urged” leaders to let people know about their vacation time. This display of power in this setting was important because employees got a lenient time off policy, and Sharon avoided all of the accounting aspects of time off. The management aspect of this was now shifted to front-line managers. 4. Referent Power Referent power is the ability of a manager or authority figure to influence and inspire other employees based on their character. Sharon displayed this power when a Netflix manager wanted to terminate Maria. Sharon thought that it was a waste of time because they knew that Maria would not improve. After all, she did not have the skillset. Instead of going through all the documentation, she used her influence to have the manager just “be honest” with Maria instead of leading her down a path of termination. She also used this same form of power with Laura the bookkeeper. This power was important in this setting because Maria essentially got paid to leave, and Netflix avoided a lawsuit. 5. Expert Power 6. This type of power is when a leader or manager displays a high knowledge or expertise in a certain area. For most of Sharon career, she explained that she “belonged to professional associations of human resources executives” (The woman behind Netflix Culture, nd). This gave Sharon the power of having great expertise in her profession. She used this to implement her policies and allowed her to be creative. She explains that she rejects the constraints and parameters that were set forth for her to follow. This power was important during this specific instance because it allowed Netflix to be a successful company. “During 2013 alone its stock more than tripled, it won three Emmy awards, and its U.S. subscriber base grew to nearly 29 million” (The woman behind Netflix Culture, nd). 7. Multidimensional Power Multidimensional power can be described in as many ways as possible that managers can influence their employees and encourage them to be productive. Sharon Slade was able to reproduce her ideals and values at Netflix in multiple ways. Some of the power styles were laissez-fair and some were democratic. Sharon motivated employees by giving them freedom, but also in exchange for the work perks they were expected to be great at their jobs. She also took experiences from employees to implement changes in Netflix culture. When they were still great or no longer a great fit, they would be terminated as seen fit by Netflix. Sharon displayed this by using multiple types of power.