what is reward power

Reward power is a type of formal power that a leader uses by offering incentives and benefits to encourage obedience and compliance of members of a team or organization. It is the ability of a manager or leader to give a reward to an employee as an incentive to improve. Rewards can include financial compensation, recognition, promotions, or other tangible rewards. Transactional leaders often use reward power to motivate their followers. For example, a leader might offer recognition for meeting specific goals or bonuses for completing projects on time. Reward power is not personal power or personal influence, but an official power afforded to managers, project managers, or team leaders who have formal authority. It is a position power, which means the source of power comes from the position held by the leader. Reward power is a great way to motivate employees as it provides them with an incentive for completing tasks, which can help increase productivity and performance.