Managers at Gary's Furniture Co. determined that there would be no end-of-year bonuses because sales were predicted to level off. Andrew, a department manager, let his staff know that even high-performing employees would not get bonuses this year. This change limits Andrews's _____ power.

Question

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The leader who has reward power influences others because he or she controls valued rewards; people comply with the leader's wishes to receive those rewards. If company policy dictates that everyone receive the same salary increase, a leader's reward power decreases because he or she is unable to give higher raises.