Exercise 1: The New CEO's Real Authority vs. Real Legitimacy Gap — Possible Solution ========================================================================================= The chapter's own real distinction separates power (raw capability), authority (a recognized right to rule), and legitimacy (a justified, accepted right). Applying each in turn to the new CEO clarifies exactly what they do and don't actually have. The new CEO genuinely has real authority: the board, the body with the actual right to appoint a company's leadership, formally granted it. That grant is a real, recognized right to direct the company, regardless of how the workforce currently feels about it - authority, as the chapter defined it, is the right to rule, not the practical ability to make people comply. What the new CEO is described as lacking is real, effective power - the actual, practical ability to produce intended effects, since the workforce is largely ignoring their directives. This is exactly the chapter's own point that authority and power can come apart: someone can hold a fully legitimate, recognized right to direct an organization while genuinely struggling to make that direction actually happen in practice, because the people meant to carry it out aren't cooperating. Legitimacy is more ambiguous in this specific case and worth naming honestly rather than assuming an answer: the CEO's authority is formally legitimate by the company's own real governance rules (a board-granted appointment), but the workforce's loyalty to the founder suggests they may not yet genuinely accept the CEO's use of that authority as the workforce's own definition of "rightful" - legitimacy, as the chapter described it, depends partly on whether power is seen as justified, and that perception clearly isn't unanimous here yet. ANSWER: The new CEO has real, formal authority (the board's own legitimate grant of the right to lead) but currently lacks real, effective power (the actual ability to get directives followed), since the workforce's loyalty lies elsewhere - a genuine, real-world illustration of the chapter's own point that authority and power are separable, with legitimacy itself only partially, and not yet fully, established with the workforce specifically. WHY THIS WORKS AS AN ANSWER ------------------------------ This applies all three of the chapter's own distinct concepts separately and correctly to the described scenario, rather than collapsing them into one undifferentiated judgment, and honestly flags where the scenario's own legitimacy question is genuinely unresolved rather than forcing a clean answer.