A partner at a private equity firm has recently been promote…
A partner at a private equity firm has recently been promoted and now has substantial decision-making power over investment decisions and portfolio allocations. (a) Describe one type of task or situation in which having this power could improve the manager’s performance, compared to a less powerful employee. (b) Describe one type of task or situation in which having this power could reduce the manager’s performance, compared to a less powerful employee. In each case, explain the psychological mechanism through which power influences the manager’s thinking or behavior.