Fundamentals of Management, 8th ed

legitimate power

Power granted

through the

organizational

hierarchy; the power

defined by the

organization to be

accorded to people

occupying a

particular position

Chapter 11: Leadership and Influence Processes

3 2 9

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Reward Power

Reward power

is the power to give or withhold rewards. Rewards that

a manager may control include salary increases, bonuses, promotion recommendations,

praise, recognition, and interesting job assignments. In general, the greater the number of

rewards a manager controls and the more important the rewards are to subordinates, the

greater is the manager’s reward power. If the subordinate sees as valuable only the formal

organizational rewards provided by the manager, then the manager is not a leader. If the

subordinate also wants and appreciates the manager’s informal rewards, such as praise,

gratitude, and recognition, then the manager is also exercising leadership.

Table 11.1

Distinctions Between Management and Leadership