Reward power comes when a person has the ability to offer desired rewards, while coercive power occurs when someone has the ability to remove or withhold desired rewards or recognition.
Coercive power is defined as the ability to control others through fear of punishment or loss of valued outcome. Reward power is the formal power given to a work leader to give out rewards to other employees.
Coercive power is the ability of a manager to force an employee to follow an order by threatening the employee with punishment if the employee does not comply with the order. It is an ability that allows an authority figure to influence another individual to deliver a result by using fear and threats as incentive.
Example are - Threats of write-ups, demotions, pay cuts, layoffs, and terminations if employees don't follow orders.
It is a position power, which means the source of power is based on a leader's position with a company. Reward power is simply the power of a manager to give some type of reward to an employee as a means to influence the employee to act.
Examples are - giving bonuses, raises, a promotion, extra time off from work.
Thus, Coercive power is the opposite of reward power.
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