This article emphasizes the importance of maintain reward power in organizations, as it leads to the desired business results.

There are five different types of powers that a business manger is entitled to make use of within the organizational level. They are: legitimate power, referent power, coercive power, reward power and expert power. In fact, each and every source of a power has its own merits and demerits. However, in this it would be briefly discussed how the reward power is worthwhile in a business organization.

Reward power is worth doing in a business organization, as it provides overall satisfaction- it is nothing but win-win strategy for a management to adopt.Management is satisfied with the earnest efforts of the employees towards the attainment of the organizational goals and objectives and at the same time, the employees are contented with the rewards given to them. A reward may be anything, pay, praise, promotion, incentives, bonus, or additional leave etc. that is given to the employees on the basis of their good personal qualities for their particular jobs and performance.

Even though a manager is entitled to handle the hectic situations through the coercive power, it may not be of that much help as it is thought.True, in the short run it seems to be applicable, but it has a damaging effect in the long run. Instead, the reward power has its own potential benefits.

It may bring a better change in the behavior of the employees and motivate the employees towards the attainment of the organizational goals and objectives working enthusiastically.

Reward power plays an important role in an effective leadership. A leader, a manager is the one who not only influences his subordinates on the basis of his good qualities or referent power or expert power, but also grants them rewards based on his reward power. Even if a reward is as simple as a word of praise, it’s a reward after all.

Being rewarded by the source of reward power, employees develop positive feelings about the organization, as their morale is enhanced. Since the employee morale and the productivity go hand in hand, it brings better results leading the whole team members towards attaining the results that are expected of

Reward power is something that a manger, a business leader, may make use of it whenever he needs. It is the reward power that paves the ways for the employees in terms of their professional growth and development by enhancing their competence level and leading the organization towards efficiency and effectiveness.

Hence, the reward power is rewarding in a business organization, as it gives gratification to employees and brings success to a business satisfactorily while contributing greatly in the total organizational development and competencies.

FAREED SIDDIQUI

I am an Individual Member of Institute of Management Consultants of India. I am a Professional with a high creative capability based on Business, Management, Financial Accounting, Management Accounting, Finance and Management Consulting Field. I impart part time training and development programs. I write professional articles on business & management, business English and Software Engineering.

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