What is meant by coercive power in a business context?

Coercive power in a business context refers specifically to the capability of an individual or organization to influence others through the use of force, intimidation, or the threat of negative consequences. This type of power is based on the potential to inflict punishment or to take away privileges or rewards if a person does not comply with specific directives or expectations.

For example, a manager may use coercive power by threatening disciplinary action against an employee who fails to meet performance targets. This creates a fear of negative outcomes, thereby influencing the behavior of the employee to align with the company's goals.

In contrast, other forms of power listed—such as the ability to influence through rewards, motivate through positive reinforcement, or mentor employees—focus on positive interactions and relationship-building in a workplace environment. These methods foster cooperation and loyalty, rather than relying on fear or punishment, which is the hallmark of coercive power.