Describe the Types of Power That Would Be at Work in an Alliance Such as This

Q1. Describe the types of power that would be at work in an alliance such as this.

Legitimate power is the extent to which a manager can use the internalized belief of an employee that the 'boss' has a 'right of command' to control other people.

James Packer already owns 38% of the company that means James Packer has a "right of command".

Expert power is the ability to control another's behavior through the possession of knowledge, experience or judgment that the other person does not have but needs.

According to the article, Paul Barry, who wrote the book behind the One.Tel collapse, said James made the promise to Lachlan and to the Murdochs that he would look after the investment for them. And certainly Lachlan Murdoch has been waiting for after a falling out and he finally walked away as the heir apparent of the global News Corp Empire, said Debra Cornwall. Obviously, James Packer use his ability to control Lachlan Murdoch's behavior through the opportunity to walked away from the dropping market that Lachlan Murdoch needs. Debra Cornwall said in article that Paul Barry says James Packer had always felt responsible for encouraging Lachlan Murdoch into the deal. Apparently, Lachlan Murdoch needs an opportunity in order to prove his abilities, and James Packer happened has one. Everyone get what he needs.

Referent power is the ability to control another's behavior because the individual wants to identify with the power source.

The leader with referent power has personal characteristics that appeal to other. Referent power lies in the personal qualities of the individual. Personal power is capable of influencing the behaviors of others, and helps to explain the strength of informal organization.