Question

What kind of working relationships would result if the project manager had more reward power than the functional managers?

Answer 1

Project manager plays a very important role in accomplishing any project.
Project managers are generally executives which have certain powers according to which they set up their goals and provides their best to achieve that goal.
They generally have less reward power than the functional manager.

Functional manager work accordingly to the requirement of the business and handles various functions of the business. They also guides employees to work accordingly to the predefined functions. They have various reward powers to reward the employees for better performing in functions.

Now if the reward power is changed and project managers would have more reward power than the functional managers then,

the working relationships among the employee and employer would improve. Employee would try to give their best in every project of the business. Project manager having more reward power would reward the best employees in a project for their contribution.
Employees would work for innovation. This would make employees work for the business and communication between the employer and employee would also improve.