The assembly line workers had already received cutbacks in bonus compensation when profits fell last quarter.Rogeco's managers made it clear that unless productivity and profits were brought back up to the industry benchmarks within two quarters,further cuts would be made to base pay.This demonstrates:

Question

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The threat of cutting base pay if productivity and profits are not improved within two quarters demonstrates Punitive power. This power comes from the ability to punish or threaten to punish individuals or groups for not meeting expectations or objectives.

The Assembly Line Workers Had Already Received Cutbacks in Bonus