Question

Helena just told her small group of employees that if they meet their sales goals for the next three months, they each will receive a $2,500 bonus. Which of the following styles of leadership is Helena using in this scenario?

A. Active Management-by-Exception
B. Contingent Reward
C. Laissez-Faire
D. Passive Management-by-Exception
E. Transformational

Answer 1

Helena's offer of a $2,500 bonus for meeting sales goals is a classic example of Contingent Reward leadership, a type of transactional leadership focused on rewards and punishments tied to performance.

Step-by-step explanation:

Helena is using a Contingent Reward style of leadership in this scenario. This leadership style is a part of transactional leadership where the leader sets specific goals for their employees and provides rewards or punishments based on their performance relative to these goals. In this case, the reward is a monetary bonus for meeting sales targets.

The mention of a specific reward for a specific outcome is classic transactional leadership, which is different from transformational leadership that focuses more on inspiring and motivating employees to exceed their own expectations and the status quo.