Walt Disney began in the 1920’s as a cartoon studio and has become a global corporation today. Walt Disney continues to provide quality entertainment today. Under the previous management of CEO Michael Eisner control was the norm. Managers became afraid or unable to make decisions. Since Bob Iger became CEO, his encouragement of contributions by members to the organization has fostered a positive change in group communication.
Sources of Power
Two sources of power found at Walt Disney are legitimate power and referent power. Legitimate power is found in formal groups and organizations and is based on one’s structural position. It is the formal authority to control and use organizational resources. Referent power is based on identification with a person who has desirable resources or traits. If the members of an organization like, respect, and admire the management, management will have power over them because they want to please them. (Robbins & Judge, 2007)
The current CEO of Walt Disney, Bob Iger demonstrates both sources of power. He has legitimate power because of his position as CEO. He has referent power because he rules by consensus as opposed to the previous CEO Michael Eisner who ruled by control. (Horan, 2007)
Iger shows faith in his subordinates, more willing to keep a low profile, visits employees to show them they are appreciated, and made the office a warmer and more welcoming place.
These sources of power, legitimate and referent affect the communication both affect the communication within the organization. Iger’s style of leadership allows the script writers more freedom, gives the studio chief greater decision making power, and allows the Pixar animation team almost free rein.(Horan, 2007) His leadership style allows for more effective and productive communication. The previous CEO Eisner insisted on being involved in everything. (Hogan, 2007) His style hindered communication between members of the organization.