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ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture

At Korvan Logistics, the regional head Delia has no formal authority over the IT team, yet staff across departments voluntarily adopt her proposals for a new routing system because they trust her expertise and admire her integrity. Which source of power best explains her influence, and what does it show about leadership versus management?

Delia's influence rests on referent and expert power because people follow her through admiration, trust and respect for her knowledge rather than formal authority. This shows leadership can exist without a managerial position, whereas management normally depends on positional, legitimate authority.

  1. ALegitimate power from her position, showing that leadership is the same as holding a managerial post
  2. BCoercive power, showing that leadership relies on sanctions
  3. CReferent and expert power, showing that leadership can exist without formal managerial authorityCorrect
  4. DReward power, showing that leadership depends on controlling pay

Explanation

Delia has no formal authority, so legitimate, coercive and reward power do not apply. Her influence stems from admiration and trust (referent) and expertise. This shows leadership is based on influence and can arise outside the formal hierarchy, unlike management, which is tied to position.

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