Reward Power: The Art Of Using Rewards For Motivation

Last updated on December 25th, 2024 at 01:30 am

We employ reward power to have a child do something or get an employee motivated. It is a powerful tool to control human behaviour. But is that all there is?

As one of the seven types of powers, reward power has a significant impact on different aspects of our lives, including education, the workplace, and social interactions.

In education, teachers can use this power to encourage students to work hard, achieve their academic goals, and form positive behaviors.

Likewise, in the workplace, managers can use it to motivate their employees to reach their targets and improve their performance.

It is also essential in social interactions as people often use rewards to influence the behavior of others, such as giving compliments or gifts to get someone to do what they want.

In this article, we will explore everything about reward power, including types, pros and cons, implementation, and negative effects.

Definition of Reward Power

Reward power is one of the six types of power, as identified by French and Raven.

It refers to the ability to use rewards to influence others to act in a certain way, and its effectiveness depends on the degree to which the reward is perceived as valuable by the person receiving it.

It is a type of power that a person or group holds over others based on their ability to provide rewards or positive outcomes such as praise, recognition, incentives, bonuses, promotions, or other desirable outcomes.

It is often used as a tool for leadership or management in organizations to achieve their goals by incentivizing or rewarding their employees for their performance, loyalty, or good behavior.

A Brief History of Reward Power

The concept of reward and its power has been a topic of interest for scholars, philosophers, and social psychologists for many years.

In the 1950s, social psychologists, John French and Bertram Raven introduced six types of power, including reward power, in their research on social influence.

They argued that the effectiveness of a reward depended on the degree of its value and the person’s perception of its worth.

Related: Different Types of Leadership Styles

Many researchers have since then studied the dynamics of this type of power and its impact in various fields, including education, family, and organizational behavior.

Today, it remains a crucial tool in social influence and plays a vital role in shaping human behavior.

Examples of Reward Power

• For example, a manager may have the power of reward over their subordinates because they have the power to provide bonuses, promotions, or extra vacation time.
• Also, a teacher can use rewards like grades, positive feedback, or extra credit to encourage their students to behave in a certain way.
• A manager giving an employee a raise or a bonus for exceptional performance.
• A coach giving a player the game ball for being the MVP of a game.
• An employer offering a promotion or a higher salary to an employee for exceeding their targets.
• A parent giving a child a treat or a toy for doing well in school or completing chores.

Types of Reward Power

There are five types:

1. Tangible Rewards: Tangible rewards are those that can be physically given to an individual, such as money, a prize, or a gift card. This type of reward power is often used in the workplace to motivate employees to achieve certain objectives or targets. The effectiveness of tangible rewards depends on their perceived value by the recipient.

2. Intangible Rewards: Intangible rewards are non-physical benefits that can be offered to an individual, such as recognition, praise, or appreciation. It is used in social settings to influence others to take certain actions. Intangible rewards can be an effective way of reinforcing positive behaviors and promoting a sense of belonging.

3. Social Rewards: Social rewards are rewards that come from being part of a social group. Membership in a particular group can provide social status, access to resources, and the opportunity to interact with like-minded individuals. This is often used in social settings to influence others to conform to group norms or expectations.

4. Personal Rewards: Personal rewards are those that are specific to an individual, such as a promotion or a raise. This is useful in positions of authority to influence others to follow their directives. Personal rewards can be a powerful motivator, especially if they are aligned with the individual’s personal goals and values.

5. Performance Rewards: Performance rewards are those that are based on an individual’s achievements, such as a bonus or a commission. This is effective in sales and performance-based cultures. Performance rewards can be an effective way of motivating individuals to perform at their highest level and achieve their goals.

Related: The Use And Abuse Of Coercive Power: A Close Look

Characteristics of Reward Power

Unlike coercive or legitimate power, which relies on the ability to punish or enforce rules, the power of reward operates through positive reinforcement.

Those who wield it have the ability to provide desirable outcomes that motivate or incentivize others to behave in a certain way.

Here are some characteristics:

• Persuasive Influence: Reward power excels at motivating others through positive reinforcement, using praise, encouragement, or tangible incentives to inspire desired behaviors.

• Voluntary Compliance: Unlike coercion, this power relies on voluntary participation, allowing individuals to choose whether to respond to offered incentives.

• Perception-Driven: Its effectiveness depends on how desirable and achievable the incentive appears to the recipient. Poorly aligned rewards can undermine its impact.

• Risk of Misuse: While typically positive, reward power can be abused to manipulate or show favoritism, potentially damaging trust and fostering resentment.

Related: Personal Power: How To Unleash Your Inner Strength

The Connection Between Rewards and Motivation

Rewards and motivation are intertwined concepts with significant impacts on behavior and performance. Rewards serve as potent motivators that drive individuals to excel and achieve.

This dynamic is rooted in operant conditioning—where desirable actions lead to positive consequences, fostering behavior repetition.

For instance, earning a bonus for tackling a tough project boosts future effort, illustrating the influence of reward power on sustained performance.

Rewards Can Act as Intrinsic Motivators: Rewards can serve as intrinsic motivators, promoting internal drive for tasks. Intrinsic motivation is the innate push to engage in enjoyable, fulfilling activities, spurring continued effort and goal surpassing.

Rewards Can Act as Extrinsic Motivators: Extrinsic motivation stems from external factors like rewards or punishments. It’s crucial for less inherently valuable tasks. External rewards like bonuses uphold work standards, yet the rewards-motivation dynamic is intricate, surpassing mere financial incentives.

A Reward System

A well-structured reward system should take into account the interests, values, and needs of individuals, offering a wide range of incentives that appeal to different motivational drivers.

For example, some employees may be motivated by receiving public recognition for their work, while others may be motivated by increased autonomy over their projects.

Some individuals may be satisfied by more flexible work schedules, others by learning opportunities or collaborative projects that challenge their skills.

The Role of Positive Reinforcement in Reward Power

Positive reinforcement plays a crucial role in the power of reward. Positive reinforcement is a type of reward that involves providing something desirable after a behavior is exhibited to increase the likelihood of that behavior being repeated in the future.

Positive reinforcement can be used as a tool to enhance remuneration power effectively.

When an individual offers positive feedback or incentives, it creates a sense of motivation and satisfaction for the person receiving the rewards.

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It is a way of showing appreciation and acknowledgment for the hard work and effort that an individual has put in to achieve a specific goal or task.

Using positive reinforcement to enhance the power of rewards requires understanding what people find most rewarding.

Some people may find monetary rewards motivating, while others may appreciate increased autonomy or recognition.

Knowing what motivates individuals can help those in positions of this type of power choose the most effective incentives to achieve the desired behavior.

Positive reinforcement also helps to build positive relationships between those in positions of reward and those being rewarded.

When individuals feel appreciated and valued, they are more likely to develop a sense of trust and loyalty towards the person providing the reward.

This trust can be an essential driver of motivation and behaviour change.

The Relationship Between Reward Power and Punishment

Reward and punishment power are vital organizational and leadership concepts. Reward power entails reinforcing desired behavior, while punishment power discourages undesired actions.

These powers work in tandem, shaping behavior based on contingencies. Managers might withhold bonuses for underperformers while rewarding exceptional employees.

The organization’s culture influences power use; some emphasize positive reinforcement and rewards, while others favor strict discipline and punishments.

These powers are intricately linked, adapting to circumstances, organizational norms, and management styles to shape behavior effectively.

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Related: Power Dynamics: Understanding The Complexities Of Interpersonal Relationships

Advantages and Disadvantages of Reward Power

When used in the right way, incentives can be beneficial for both parties involved. However, like most things, there are advantages and disadvantages to this power. Let’s take look …

Advantages of Reward Power

• Promotes Positive Behavior: Reward power reinforces good behavior by acknowledging and valuing achievements, helping align actions with organizational goals.

• Enhances Motivation: Rewards like bonuses or extra time off encourage effort, even for less engaging tasks, driving productivity.

• Improves Retention: Incentives and recognition foster a positive work culture, making employees feel valued and increasing job satisfaction, which helps retain talent.

Disadvantages of Reward Power

• Dependency: Over-reliance on incentives can create entitlement, diminishing intrinsic motivation as actions become driven by rewards rather than their inherent value.

• Short-Term Impact: Rewards may only temporarily modify behavior, with individuals reverting to old habits once the incentives stop, making long-term change difficult.

• Costly: Frequent or overly generous incentives can strain finances, as escalating expectations place a growing burden on the organization.

Pros of Using Reward Power in Leadership

• Boosted Motivation: Leaders can inspire better performance and productivity by effectively using incentives.
• Positive Reinforcement: Rewards encourage desired behaviors, fostering a positive work culture and stronger leader-employee relationships.
• Enhanced Morale: Recognized employees feel appreciated, boosting their job satisfaction and attitude toward work.
• Increased Loyalty: Incentives build employee loyalty and commitment to organizational goals.
• Improved Retention: Valued employees are less likely to leave, reducing turnover and enhancing stability.

Cons of Relying Solely on Reward Power

• It fosters short-term focus, neglecting quality, teamwork, and long-term growth.
• Overuse undermines intrinsic motivation, reducing job satisfaction.
• Excessive rewards create unrealistic expectations and entitlement.
• It can encourage unethical behavior, damaging credibility.
• Reward dependency is costly and may lead employees to seek better offers elsewhere.

Related: Developing Positional Power For Organizational Impact

Examples of Situations in Which Reward Power is Particularly Effective

• Workplace: Rewards like bonuses and promotions motivate employees to achieve goals and perform well. In sales and marketing, commissions and bonuses drive salespeople to meet targets.
• Classrooms: Teachers use rewards like stickers or extra credit to inspire students to excel academically and participate.
• Teams: Leaders encourage collaboration and goal achievement with rewards like recognition or group celebrations.
• Parenting: Incentives like outings or favorite treats motivate children to complete tasks and behave well.

Case Studies of Leaders Who Effectively Utilize Reward Power

1. Tim Cook, CEO of Apple Inc.: Tim Cook uses reward power by offering his employees incentives to stay with the company and perform well. For example, he offers stock options and bonuses to employees who meet and exceed their performance goals. Cook has also implemented a program called Apple University, which offers free courses to employees to help them attain their desired personal and professional growth.

2. Satya Nadella, CEO of Microsoft: Satya Nadella uses reward power by offering his employees benefits such as paid time off, health insurance, and internal training and development programs. Nadella also encourages his employees to pursue their passions and often rewards employees who take on projects that bring value to Microsoft.

3. Reed Hastings, Co-founder and CEO of Netflix: Reed Hastings uses reward power by offering his employees unlimited vacation time, flexible work hours, and generous salary packages. Hastings also rewards his employees for taking risks and pushing boundaries, which has resulted in Netflix becoming a leader in the entertainment industry.

4. Jeff Bezos, Founder, and CEO of Amazon: Jeff Bezos uses reward power by offering his employees competitive salaries, stock options, and bonuses based on performance. Bezos also places a strong emphasis on innovation and rewards employees who come up with new and creative ideas.

5. Indra Nooyi, Former CEO of PepsiCo: Indra Nooyi used reward power by instituting a program called “Performance with Purpose,” where employees were encouraged to think beyond profits and focus on social and environmental responsibility. Nooyi also implemented a system where employees could earn bonuses based on their contributions to the company’s sustainability goals.

Implementing Reward Power in the Workplace

The power of rewards is a vital managerial tool that aligns behaviors with organizational goals. It fosters positive environments, enhancing engagement, productivity, and loyalty.

Implementing it effectively requires meaningful and individualized rewards, tailored to employees’ motivations and values. Tying rewards to specific performance outcomes with measurable goals ensures accountability and fairness.

Fair distribution, avoiding bias, and implementing clear, objective criteria for recognition are crucial. Managers must be trained to apply these criteria consistently, fostering an equitable and motivated workplace.

Related: What Is Information Power? Benefits, Misuse And Challenges

Tips for Creating a Working Reward System

Clearly define the goals of your reward system to reinforce desired behaviors.

Align rewards with these objectives, specifying clear criteria for earning them.

Keep the system simple, fair, and consistent to build trust. Offer diverse rewards to suit different preferences, celebrate successes to motivate others, and regularly monitor and adjust the system for effectiveness.

Gather employee feedback to ensure it meets their needs.

Strategies for Motivating Employees through the Use of Rewards

Financial incentives like bonuses and stock options can effectively boost employee motivation.

Career development opportunities, such as training and promotions, encourage employees to excel.

Recognition programs, including awards and verbal appreciation, foster a sense of value.

Non-monetary perks like flexible hours enhance work-life balance, while quality-of-life benefits, such as gym memberships, improve morale.

Team rewards, like group lunches, promote collaboration and camaraderie.

The Importance of Fairness and Consistency When Using Reward Power

Reward Power’s effectiveness relies on fairness and consistency. Fairness ensures equal opportunities for all employees to receive rewards based on performance, preventing demotivation.

Unfair distribution can harm morale and productivity. Objective criteria, like performance metrics, should guide rewards instead of personal biases. Consistency is vital too, as sporadic or unclear reward systems can lower motivation and performance.

Establishing clear guidelines and uniformly applying them across all employees fosters fairness and clarity, supporting a positive work environment.

How to Avoid Unintended Consequences When Implementing Reward Power

• Define Specific Behaviors: Clearly outline which actions to encourage or avoid.
• Choose Relevant Rewards: Select meaningful rewards that align with the behavior you aim to promote.
• Maintain Consistency: Apply rewards equally to avoid conflicts and enhance fairness.
• Avoid Negative Outcomes: Ensure rewards don’t unintentionally discourage teamwork or collaboration.
• Regularly Evaluate: Assess and adjust the system to maintain effectiveness.
• Communicate Clearly: Explain the reward system and expectations to prevent misunderstandings.
• Eliminate Favoritism: Treat everyone fairly to build trust and credibility.
• Promote Intrinsic Motivation: Foster autonomy and internal drive for lasting results.

Dangers of Overusing Reward Power

Excessive use of reward power risks undermining intrinsic motivation, eroding personal satisfaction in tasks and stifling creativity. Overreliance on rewards may erode trust, respect, and autonomy in relationships.

It can breed unhealthy competition and foster a toxic work environment, as individuals prioritize rewards over ethical behavior.

Additionally, it incurs costs, both financial and in terms of diminished results when rewards fail to sustain engagement.

Overusing this power can weaken intrinsic motivation, trust, ethical conduct, and overall productivity, emphasizing the need for balanced and thoughtful application within organizations.

How to Strike a Balance between Reward Power and Other Forms Of Leadership

• Understand Leadership Styles: Familiarize yourself with different styles like transformational, authentic, and servant leadership to create a balanced approach.
• Build Strong Relationships: Listen to your team, address concerns, and offer constructive feedback.
• Ensure Fair Rewards: Reward consistently and merit-based to prevent favoritism.
• Foster Collaboration: Involve the team in setting goals and making decisions.
• Lead with Purpose: Align your vision and actions with clear goals and values.
• Encourage Open Communication: Promote honesty and empathy to address team needs effectively.

Reward Power vs Coercive Power

Rewards encompass diverse forms, including monetary compensation and public recognition. In contrast, coercive power emerges from punishment capabilities.

This power is associated with abusive relationships or authoritarian regimes, manifesting through threats, violence, or fear tactics. While both powers achieve short-term goals, they yield different long-term effects.

The power of rewards promotes trust and respect, while coercive power evokes fear and resentment. Coercion may lead to compliance, but not loyalty.

These powers also differ in their assumptions about human nature: reward power trusts in people’s inclination for good, while coercive power relies on fear to motivate compliance.

Conclusion

Reward power is a potent tool for leaders to harness within organizations. It involves incentivizing and acknowledging positive behaviors, and promoting team morale, and job satisfaction.

By rewarding dedication and hard work, motivation increases, propelling performance and success. It’s crucial to use this power responsibly and equitably, as arbitrary rewards can lead to distrust and turnover.

Transparent and well-defined reward systems are essential, ensuring fair recognition based on merit. Though risks exist, successful implementation drives motivation, cultivating a positive workplace where individuals and teams are appreciated, motivated, and strive for higher success, ultimately enhancing business performance.

References:

1. The power of rewards and why we seek them out
2. Reward Power – The Fastest Way To Persuade
3. Reward Power in Leadership: Definition and Example