Which of the Following Is True of Reward Power

question 64

Multiple Choice

Which of the following is true of reward power?

• A) Effective managers use their reward power sparingly.
• B) Effective managers use rewards in a controlling manner, signaling to subordinates that the manager has the upper hand.
• C) Managers who exercise coercive power more often than reward power create a tension-free work environment.
• D) Being able to give or withhold rewards based on performance allows managers to have a highly motivated workforce.
• E) The use of reward power seldom produces high performance and is questionable ethically.

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Definitions:

Break-Even Price

The price point at which total revenues equal total costs, resulting in no profit or loss for the business, used as a measure of financial sustainability.

Variable Costs

Expenses that vary in relation to a company's production volume or operational activities.

Lawn-Mowing Service

A business that provides the service of cutting the grass on residential or commercial properties.

Optimal Output

The level of production that maximizes a firm's profit, or the most efficient allocation of resources in producing a good or service.