When person A has influence over person B because A decides what benefits B will get, reward power exists.
Position power refers to the source of power, and reward power is based on a leader's position within a corporation. These incentives may take the form of wage increases, promotions, desired job assignments, increased responsibility, new equipment, and other things. Employees who perceive a strong performance-reward contingent perform better on the job more frequently, according to research. However, in many businesses, managers and supervisors don't actually have much control over incentives. For instance, the majority of blue-collar workers base compensation and promotion decisions on a labor contract rather than a performance review.
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