Final answer:
The power that can motivate if used correctly but lead to demoralization if applied unethically or with favoritism is reward power. It plays a crucial role in motivation and maintaining morale but must be used fairly and transparently.
Step-by-step explanation:
The correct answer to the question of which power can motivate when used appropriately but lead to demoralization and apathy when used unethically or distributed based on favoritism is c. reward power.
Reward power is the ability of a person to offer incentives to others for completing tasks or following instructions. When leaders use reward power ethically and distribute rewards fairly, it can be a strong motivator for individuals to achieve goals and improve performance. However, if a leader uses reward power based on personal favoritism or unethically, it can lead to feelings of injustice, demoralization, and a lack of motivation within a team or organization. Fair and transparent use of rewards is essential to maintain morale and motivation among individuals.