Question

Vivan has set up a small-scale manufacturing unit for making different varieties of low-cost detergents. In order to market his product, he has employed a team of five salesman. Each salesman has been assigned specific areas in the city. He holds a meeting every month for determining the objectives of achieved during the coming month. A sales target is predetermined for each month which is mutually agreed by both Vivan and his sales team. If the salesmen succeed in reaching this target a bonus is paid out to all of them along with the monthly salary.

In context of the above case:

(a) What style of leadership is adopted by Vivan? Explain by quoting lines from the para.

(b) Name the non-financial incentive being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm

Answer 1

(a) The democratic style of leadership is adopted by Vivan. A democratic leader encourages his subordinates to participate in the process of decision making. Thereby, the manager is able to motivate his subordinates to perform their best, as they themselves have set the goals. “A sales target is pre-determined for each month which is mutually agreed by both Vivan and his sales team.”

(b) Employees participation is the type of non-financial incentive that is being offered to the salesmen by seeking their involvement in deciding the monthly targets of the firm.