ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -There are two different types of reward power, being tangible and intangible. Managers or leaders may use either of these as an incentive for employees to improve productivity or morale.

Detailed explanation-2: -Reward power is the formal power given to a work leader to give out rewards to other employees. It is a position power, which means the source of power is based on a leader’s position with a company. An example of reward power is a manager or supervisor who incentivizes higher performance from employees.

Detailed explanation-3: -A higher risk-reward ratio is generally preferable because it offers the potential for a greater return on investment without undue risk-taking. A ratio that is too high indicates that an investment could be overly risky. However, a ratio that is too low should be met with suspicion.

Detailed explanation-4: -Reward power is the ability to reward others when they follow your wishes or instructions. For example, a manager may be able to reward raises, promotions, bonuses or even simple compliments to sales employees who meet their quotas. These rewards can increase employees’ incentive to perform.