Association of Chartered Certified Accountants (ACCA) Certification Practice Test

Which type of power may involve the use of negative consequences to influence others?

1. Reward power

2. Coercive power

3. Legitimate power

4. Expert power

The correct answer is: Coercive power

Coercive power is rooted in the ability to impose negative consequences or punishments on others as a means of maintaining control or influence. This type of power is often exerted through the threat of disciplinary action, demotion, or any other form of undesirable outcome. For instance, in a workplace setting, a manager may use coercive power to ensure compliance by making it clear that failure to meet performance expectations could lead to job loss or other negative repercussions. The key characteristic of coercive power is its reliance on fear and the potential for a negative impact, which distinguishes it from other forms of power, such as reward power (which operates through incentives and positive reinforcement), legitimate power (which is derived from one's position within an organizational structure), and expert power (which stems from specialized knowledge or skills).