Coercive power is the flip side of rewards – it’s the ability to influence behaviour by threat of punishment or negative consequences.

It’s the proverbial “stick” in management.

Examples include a supervisor warning that poor performance could lead to reprimand or termination or a director implying that non-compliance with a new policy will result in budget cuts for a team. Coercive power can ensure compliance in the short term (few want to face penalties), but it comes with significant risks.

Leaders recognise that a culture driven by fear is unsustainable. While every organization needs consequences for misconduct or consistently subpar work, overusing coercive tactics can erode trust and motivation. Employees might do what’s asked out of fear of punishment, but they rarely go above and beyond. In fact, heavy-handed use of coercive power often sparks hidden resistance, high stress, or turnover.

For instance, consider a manager who constantly threatens the team with “shape up or else.” The team may meet the bare minimum to avoid trouble, but they likely won’t innovate or openly communicate problems. Effective leaders reserve coercive power for critical issues like ethical breaches or safety violations – and even then, they apply it fairly and transparently.

The takeaway for practitioners is to rely on coercion sparingly and never as a primary leadership tool. Building commitment yields far better results than instilling fear.