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What Is Bruce Reid's Coercive Power

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What Is Bruce Reid's Coercive Power
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Bruce Reid has been appointed as the CEO of Blake Memorial Hospital. He must figure out a way to improve care and manage the funds better by next week’s board meeting. He realizes he can accomplish both tasks if he cuts spending on six off-site clinics that provide care to the poor. If he does this, it could have a detrimental affect on the communities the clinics serve, the employees that work there, and his reputation with political forces. Now Reid must find the best approach to achieving his goals while making as little enemies as possible. Bruce Reid: Power and influence Reid’s sources of power are coercive and legitimate. By limiting or eliminating the money funneled into the six off-site clinics, he will save about a quarter of a million dollars; consequently, freezing or cutting salaries would diminish the morale. Cutting or freezing salaries are ways Reid can use his coercive power. This type of power has a negative effect on employees, so
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I think using legitimate power to make a decision at Black Memorial Hospital would not have a positive effect because the potential consequences. If he decides to use his power to cut the clinics’ funding, he risks losing city funds and the support of the commissioner of health services and the director of the clinics (Daft, 2008). When a company is struggling to keep its doors open, management needs to make hard decisions that warrant hard power tactics; however, this is not the case for Blake Memorial Hospital. Since Bruce Reid is the newly appointed CEO, he should trend lightly when implementing change. It would be best to utilize referent power. It would elevate the level of respect and admiration his staff feels toward him; thus, making the staff more committed to him (Daft, 2008). Having a staff that trusts and is committed to you is the most profitable asset, so it is important that Reid accomplish this early on in his

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