Question

Patrick, a sales manager, establishes sales quotas for the members of his staff and specifies the bonuses and commissions that they will receive when they meet their sales goals. This is an example of which style of transactional leadership?

a. idealized influence
b. active management-by-exception
c. contingent reward
d. passive management-by-exception

Answer 1

Patrick exemplifies the contingent reward transactional leadership style by setting sales quotas and defining bonuses for achieving those goals.

Step-by-step explanation:

Transactional leadership, also known as managerial leadership, is a leadership style where leaders rely on rewards and punishments to achieve optimal job performance from their subordinates. The transactional executive leadership model is based on an exchange or transaction.

Patrick, a sales manager, setting sales quotas and specifying the bonuses and commissions for staff upon achieving sales goals, is an example of contingent reward in transactional leadership styles. In transactional leadership, the focus is on achieving organizational goals through a system of rewards and punishments.

Unlike transformational leadership, which involves leaders being charismatic, inspirational, intellectually stimulating, and individually considerate, transactional leadership emphasizes maintaining the status quo and managing through straightforward exchanges with employees - rewarding performance that meets or exceeds expectations.