According to Robbins & Judge (2007) power is defined as the “capacity that A has to influence the behavior of B so B can act with A’s wishes.” There are five bases of power that are divided into two groups according to Robbins & Judge (2007).
Formal Power
The first group in the power in the power bases is formal. Formal power is based on the position held in organization (Robbins & Judge (2007). Formal Power is divided into three power bases: coercive power, reward power and legitimate power (Robbins & Judge, 2007).
Coercive Power Coercive power is based on the fear of consequences when the person does not follow instructions of their leader. This type of fear can be a physical or mental pain discomfort based on the frustrations of the unknown. Conceive power can be displayed by threats of loosing job and privileges, being demoted and other types of consequential actions. Coercive power could also be used to conceal key information (Robbins & Judge, 2007). Employee 2 could possibly use conceive power based on how valuable he is his position to get more pay or even better schedule than the one he requested or other job advantages.
Reward Power Reward power is power one has to reward another person. Some examples of rewards could be monetary, promotions, and recognitions. According to Robbins & Judge (2007) coercive power and reward power are counterparts of each other. Rewarding for good deeds is using reward power, and punishing for not following direction is coercive power. In the example given the marketing manager is using reward power to inspire employee 1 based on him working harder and extra hours will reflect a greater reward.
Legitimate Power
Legitimate power is found to be a position one holds in organization. According to Robbins & Judge, 2007) it gives the leader authority to control the organization and its assets.
In the example in the scenario, the marketing manager has legitimate power also.
References: Robbins. S. P., & Judge, T.A. (2007), Organizational behavior (12th ed.). Upper Saddle River NJ: Pearson Prentice-Hall.