People in an organization generally know who has the power to sign vouchers or give raises

Reward power

Reward power grows out of the ability to give income, praise, recognition,. promotion, or other valuable tangibles and intangibles. People in an organization generally know who has the power to sign vouchers or give raises; they know whose compliments are a sign of high status. We analyzed this kind of power extensively while discussing the perfOlmance model.

Coercive power

Coercive power is the opposite of reward power in that coercive power is based on fear. A manager who can give out a reward in a given situation can also use coercion-if only by withholding rewards. People may work hard to avoid embmassment or scorn.

The power to reward and coerce are tangible resources when a manager is directly responsible for an employee. But what happens when a manager has no direct control? Obviously one cannot give a raise to, or fire, or suspend a fellow manager. In this situation, conformity and identification are strong motives and operate together. One person identifies with another when he feels that the other person has some quality that is desirable, appealing, or worth imitation. This identification will influence a person to act like another and meet his requests. In turn, this identification often leads to conformity.

The need to identify and conform can lead to peer pressure, which is a powerful management tool. The makers of T.V. commercials use celebrities in the hope that a customer will identify with them. Many commercials imply, "Wouldn't you like to be like this hero; everyone else is. Surely you don't want to be different." Likewise, a peer may be influenced by saying, "Ruth, all the other managers are sending a representative to the safety meeting. Even the V.P. of finance is going to have a representative present. Whom will you be sending?