Principles of Management CLEP Practice Exam 2026 – Your Comprehensive All-in-One Guide to Exam Success!

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What type of power involves the ability to give rewards such as money or praise?

Coercive power

Legitimate power

Expert power

Reward power

Reward power is characterized by an individual's ability to grant rewards to others, making it an important aspect of influence in a management context. This type of power stems from the capacity to provide benefits such as financial incentives, praise, recognition, or additional privileges. When a manager or leader can offer these rewards, they can effectively motivate employees to achieve desired outcomes or change their behaviors in a positive way.

Individuals who possess reward power are able to influence others by appealing to their needs for recognition, compensation, and rewards. This creates a dynamic in which employees may be more inclined to follow directives or contribute effectively to team goals, knowing that their efforts will be acknowledged or compensated. This makes reward power a crucial tool for leaders aiming to inspire and engage their teams.

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