Reward Power in Leadership: Definition & Example

Reward Power in Leadership: Definition & Example

Definition and Key Concepts

Reward strength is virtually the strength of a supervisor to offer a few kind of praise to an worker as a way to steer the worker to act.

Rewards may be tangible or intangible. The key difference among a tangible praise and an intangible praise is that tangible rewards are bodily matters, whilst intangible rewards are now no longer. Examples of exact rewards encompass financial awards, salary or revenue increases, bonuses, plaques, certificates, and gifts.

Intangible rewards also can be powerful. Examples of intangible rewards encompass reward, tremendous feedback, recognition, greater duty along with a upward push in status, or even a properly-timed ‘thank-you.’ An apparent gain to intangible rewards is they may be as powerful as tangible rewards and value fantastically nothing.

Reward strength does have a few risks. Employees can be tempted to interact in unethical or unlawful conduct to satisfy the standards to earn the praise. For example, an unscrupulous salesman may also interact in fraud to set off clients to purchase, with a view to meet the manufacturing stage required for a bonus. Reward strength may additionally create opposition among personnel this is counter-productive, hurting teamwork and organization productivity. Employees may additionally attention their interest far from their jobs and attention their interest on acquiring rewards, even on the value of negative paintings quality. For example, individuals of an meeting line may go sloppily with a view to paintings greater fast to satisfy manufacturing desires for an award.

Tangible and Intangible Rewards

There are varieties of rewards – tangible and intangible. Tangible rewards encompass things like bonuses and pay rises, while intangible rewards encompass things like reward and accelerated duty.

There are multiple risks to tangible rewards. First, despite the fact that a supervisor is in a function of authority over their subordinates, they will now no longer have the authority to trouble tangible rewards including a present, for example. Second, even in case you do have the authority to trouble tangible rewards, it’s far viable to expire of rewards, for example, there may be simplest so frequently you could use a merchandising as a praise for one person.

Because of this, it’s far high-quality to apply intangible rewards frequently, saving tangible rewards for genuinely massive successes or simplest issuing them annually.

Intangible Reward Example

Giving a person reward in the front in their friends for doing some thing proper, may be a robust motivator for them to hold to perform. It also can inspire the relaxation of the crew to perform, as additionally they need to obtain the equal reward. Obviously, intangible rewards have the brought gain that they don’t value whatever to the employer.

Reward Power Advantages The benefits of praise strength are: The anticipation of a praise can inspire personnel to paintings tough to reap the praise. The use of rewards can sell loyalty to the employer, for example, a employee who gets everyday reward for doing matters proper could have an accelerated feel of loyalty as compared to a employee who gets no reward. If the praise to be had can simplest receive to a subset of personnel then this may create healthful opposition among personnel to reap the praise. Some rewards can assist enhance retention, for example, a inventory alternatives could make it financially profitable to live at an employer. This can follow even supposing an worker should earn barely greater at some other employer. If a praise has been promised to a whole crew in the event that they hit an objective, then this may create a robust bond in the crew as everybody strives to reap a not unusual place goal.

Reward Power Disadvantages

Some of the pitfalls of praise strength encompass: Giving out the equal praise again and again once more can reason a few rewards to lose their strength, for example, in case you have been to offer out the equal present each time for a process properly performed it might sooner or later emerge as demotivating. Tangible rewards value an employer money. It is viable to expire of exact rewards, and as we noticed previously, an worker’s supervisor might not have the authority to trouble the worker with a tangible praise. If a praise is given primarily based totally on performance, different personnel who didn’t obtain the praise may also experience much less motivated. Giving a praise to an worker, specially if performed regularly, can reason them to count on comparable rewards within side the future. This reduces the strength of the praise as personnel start to see it as virtually a part of their everyday compensation.


Reward strength is described through using a praise to get a subordinate to comply with an instruction, with strength coming from the supervisor’s cappotential to withhold the praise for noncompliance. This makes praise strength a proper kind of strength.