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| Topic: |
Business
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| Number of pages / Number of words: |
9 / 2446 |
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This power is undisputable and is understood by all employees, as long as the company has a well-defined hierarchy. For example, if a new regional manager is appointed, it is assumed that the factory staff understands that he is in charge and if he tells them to do something, they have to do it.
Reward power comes from the manager's ability to give out rewards for good performance, in the form of yearly bonuses or pay increases...
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For example, if a manager's team beat the annual profit estimate, they may receive an end-of-year bonus from their boss, which will act as an encouraging factor for them to try even harder the following year. That promotes the manager's overall power even further.
Coercive power is the opposite of reward power and comes from the manager's ability to punish people for bad performance...
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