Official (positional) power: As mentioned in the example, Sharon has official power from the position she holds. Since Sharon is the CHRO (Chief Human Resources Officer), she can drive the organization based on her decisions which would be considered of high importance. She can drive her company to her decisions based on her designation and power.

Transactional (reward) power: Since Sharon exhibits great performance she has the attitude to reward employees with great performance who exhibit their skills to the achievement or improvement of the organization’s processes. Since Alice is an asset for the company as she has great knowledge of Excel, Sharon can reward Alice to stay back with Netflix to take advantage of her knowledge.

Coercive power: Sharon has the authority to take severe disciplinary action against employees who are violating the code of conduct or business ethics. Sharon is fair however firm.

Knowledge (information) power: Sharon has drawn great knowledge in human resources from her previous position as Vice President of Human Resources in General Electric. She has an in-depth knowledge in human resources. Sharon’s experience helps her to make Netflix the number one in all on-demand entertainment categories.

Charismatic: Sharon’s attitude is to drive the employees in the right direction helping them come up in their career. Her innovative methods and great experience in human resources helps her to contribute for the success of the company.

Principle-centered (social): Sharon is people centric. Her passion to handle people and involvement in her role as CHRO enables her to contribute to the success of the organization. In her negotiation, she can identify top performance and negotiate to retain such employees with Netflix.

Question: provide examples that show how Sharon may exhibit this type of power during the negotiations. Finally, provide a reason why this type of power is important in this setting.