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Coercive power is exercised when followers comply with a leader’s directives primarily out of fear of potential punishments or negative consequences that may follow for non-compliance. This type of power relies on the ability of the leader to impose penalties or enforce discipline, creating an environment where followers feel compelled to act in accordance with the leader's wishes to avoid such punitive actions.

In contrast, reward power is focused on the ability of a leader to provide positive incentives or rewards for compliance, while legitimate power stems from a person’s formal authority or position within an organizational hierarchy that grants them the right to influence others. Referent power, on the other hand, arises from the personal qualities of the leader, where followers choose to comply out of admiration or respect for the leader. The distinct nature of coercive power stems from the underlying concept of fear and control, differentiating it clearly from the other types of power in the leadership context.