Reward power is important because it can significantly boost key aspects of a work environment. As the provided reference notes, reward power can directly contribute to increased employee happiness, performance, team effectiveness, and the overall achievement of company objectives.
Benefits of Reward Power
Here's a breakdown of why reward power is so important:
- Enhanced Employee Happiness:
- When employees feel appreciated and valued through rewards, their job satisfaction increases. This can lead to a more positive and motivated work environment.
- Examples of rewards might include bonuses, gift cards, public recognition, or even additional time off.
- Improved Performance:
- Rewards can serve as incentives, motivating employees to work harder and achieve better results.
- When employees know that high performance will be acknowledged, they are more likely to strive for excellence.
- Increased Team Effectiveness:
- Teams that are rewarded for their collective efforts often work more collaboratively and effectively.
- Group rewards encourage teamwork and a sense of shared accomplishment.
- Achievement of Company Goals:
- By aligning rewards with company objectives, businesses can steer employee behavior toward desired outcomes.
- For example, rewarding teams for reaching sales targets or for completing projects on time contributes directly to company success.
Practical Insights and Examples
| Aspect | Explanation | Examples |
|---|---|---|
| Employee Happiness | Rewards that acknowledge effort and dedication foster a sense of value. | Performance-based bonuses, employee-of-the-month awards, or even simple verbal praise. |
| Performance Improvement | Incentives drive higher output and better quality of work, especially when aligned with specific goals. | Commissions on sales, project completion bonuses, or extra vacation days for hitting benchmarks. |
| Team Effectiveness | Collective rewards foster collaboration and unity within teams to achieve better results. | Team dinners, group outings, or shared bonuses based on team performance. |
| Company Goal Achievement | Strategic rewards channel employee activity towards achieving critical organizational objectives. | Financial incentives for reaching sales targets, time off for successful project completion. |
Important Note
It’s important to note that while reward power is highly beneficial, it should not be the only tool in a manager's toolkit. Relying solely on reward power is not enough for effective management. A balanced approach that also includes other forms of power, such as expert power, legitimate power, and referent power, is necessary for optimal results.
