What type of power involves granting rewards for performance?

Prepare for the Fundamentals of Success in Business Exam. Study with comprehensive flashcards and multiple-choice questions featuring hints and explanations. Pass your exam with confidence!

Reward power is a type of influence that is established by the ability to offer something desirable to others as a form of motivation or incentive. In business and organizational contexts, this power is exercised when leaders or managers provide rewards such as promotions, bonuses, recognition, or other benefits to employees or team members in response to their performance or behavior.

The underlying principle of reward power is that individuals are motivated by the potential for rewards to enhance their performance or productivity. When employees perceive that their efforts will be recognized and rewarded, they are more likely to feel motivated to work harder and align their actions with the goals of the organization. This type of power is effective in fostering a positive work environment and enhancing team morale.

In contrast, other types of power have different foundations. Coercive power relies on the ability to impose penalties or negative consequences, expert power is based on an individual's knowledge and skill level, and legitimate power comes from a person's formal position within an organization. Each of these forms of power serves distinct purposes and various effects on interpersonal relationships and motivation in the workplace.

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