Definition of Reward Power
Reward Power is the power that is exercised by a leader or a senior to his/her subordinate(s) when they perform as per expectations and compliance. A raise in salary, a foreign trip, paid time off and bonuses are examples of reward power.
A manager who has the reward power has the ability to withhold the reward if the person subject to reward didn’t perform as instructed by the manager.
Example of Reward Power:
The manager has announced a seven-day cruise trip in Italy (all expenses on the company’s behalf) if the team completes and delivers the assigned task within 35 working days.