Reward Power in Leadership: Definition & Example

Reward Power in Leadership: Definition & Example
Coming up next: What Is Servant Leadership? - Definition, Characteristics & Examples

You're on a roll. Keep up the good work!

Take Quiz Watch Next Lesson
 Replay
Your next lesson will play in 10 seconds
  • 0:01 Definition & Key Concepts
  • 1:30 Example
  • 2:21 Lesson Summary
Add to Add to Add to

Want to watch this again later?

Log in or sign up to add this lesson to a Custom Course.

Log in or Sign up

Timeline
Autoplay
Autoplay
Speed

Recommended Lessons and Courses for You

Lesson Transcript
Instructor: Shawn Grimsley
In this lesson, you'll learn about reward power and its important concepts and then be provided an example to illustrate it. You'll have an opportunity to reinforce your knowledge with a short quiz after the lesson.

Definition and Key Concepts

Reward power is simply the power of a manager to give some type of reward to an employee as a means to influence the employee to act.

Rewards can be tangible or intangible. The key distinction between a tangible reward and an intangible reward is that tangible rewards are physical things, while intangible rewards are not. Examples of tangible rewards include monetary awards, wage or salary increases, bonuses, plaques, certificates, and gifts.

Intangible rewards can also be effective. Examples of intangible rewards include praise, positive feedback, recognition, more responsibility including a rise in status, and even a well-timed 'thank-you.' An obvious advantage to intangible rewards is that they can be as effective as tangible rewards and cost relatively nothing.

Reward power does have some disadvantages. Employees may be tempted to engage in unethical or illegal behavior to meet the criteria to earn the reward. For example, an unscrupulous salesman may engage in fraud to induce customers to purchase, in order to meet the production level required for a bonus. Reward power may also create competition between employees that is counter-productive, hurting teamwork and group productivity. Employees may also focus their attention away from their jobs and focus their attention on obtaining rewards, even at the cost of poor work quality. For example, members of an assembly line may work sloppily in order to work more quickly to meet production goals for an award.

To unlock this lesson you must be a Study.com Member.
Create your account

Register to view this lesson

Are you a student or a teacher?

Unlock Your Education

See for yourself why 30 million people use Study.com

Become a Study.com member and start learning now.
Become a Member  Back
What teachers are saying about Study.com
Try it risk-free for 30 days

Earning College Credit

Did you know… We have over 200 college courses that prepare you to earn credit by exam that is accepted by over 1,500 colleges and universities. You can test out of the first two years of college and save thousands off your degree. Anyone can earn credit-by-exam regardless of age or education level.

To learn more, visit our Earning Credit Page

Transferring credit to the school of your choice

Not sure what college you want to attend yet? Study.com has thousands of articles about every imaginable degree, area of study and career path that can help you find the school that's right for you.

Create an account to start this course today
Try it risk-free for 30 days!
Create An Account
Support