Jane informed her staff about the lack of bonuses due to low sales; this limited her _____________ power.

Study for the Penn Foster Principles of Management (BUS 110) Test. Review core concepts with flashcards and multiple-choice questions, each offering hints and explanations. Prepare effectively for your exam!

The correct answer is reward power, which refers to the ability of a manager to provide benefits or rewards to employees. In this scenario, Jane's notification about the absence of bonuses indicates a direct loss of her ability to incentivize her staff through financial rewards. Reward power is significant in motivating employees to perform better and achieve organizational goals, as rewards typically serve as incentives.

When bonuses are tied to performance, they can boost morale and encourage higher productivity. By informing her team that bonuses are not available due to poor sales, Jane effectively diminishes her ability to utilize this power to motivate her staff. In contrast, while legitimate power refers to the authority derived from a person's position within an organization, expert power stems from an individual's knowledge and skills, and coercive power involves the ability to impose penalties or consequences. None of these are directly impacted by the absence of bonuses in the same manner as reward power.

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