Through transformational leadership, employees can gain greater benefits associated with their membership in the organization, referred to as what?

Prepare for the HRM/324T Total Compensation Test with engaging flashcards and multiple-choice questions. Boost your understanding with explanations for each question and get exam-ready!

Transformational leadership is known for its ability to inspire and motivate employees to exceed their own self-interests for the good of the organization. This leadership style often creates an environment where employees feel more connected to their work and the mission of the organization, which enhances their overall experience and sense of belonging.

The term “intangible rewards” specifically refers to non-material benefits that employees perceive from their engagement with the organization. These can include feelings of fulfillment, personal growth, enhanced relationships, and a sense of purpose. Such rewards often result from the emotional and psychological connections that transformational leaders help to foster. Through their support and encouragement, transformational leaders enable employees to achieve their potential, contributing to a workplace culture that values and nurtures individual contributions.

In contrast, tangible rewards are material and quantifiable benefits such as bonuses, raises, or gifts, while monetary compensation is purely financial in nature. Job satisfaction, although influenced by transformational leadership, is a broader concept that encompasses various aspects of the employee experience and not solely the benefits derived from leadership. Thus, the correct association with the benefits gained through transformational leadership is rooted in the intangible rewards that contribute to a deeply satisfying and fulfilling work environment.

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