Discuss how leadership can effectively use both intrinsic and extrinsic rewards systems in two different business contexts (example: sales, manufacturing, banking, etc.).


Exploration essay will require 5-6 scholarly, peer-reviewed sources

Each bullet should be thoroughly explored in your essay:

Discuss how leadership can effectively use both intrinsic and extrinsic rewards systems in two different business contexts (example: sales, manufacturing, banking, etc.).
Discuss a model of leadership persuasion or influence and how communication is used effectively but without manipulation in that model.
Discuss the ‘grapevine’ communication element and develop two methods that a business leader can use to communicate effectively via the grapevine.
Discuss how business leaders can effectively lead a team at each stage (forming, storming, norming, performing, and adjourning) of group development.

Each bullet needs a level 1 header in addition to intro and conclusion. times new roman 12 pt font. follow these guidelines.


          Leadership in the Business World


  Leadership is about influencing followers to take a certain direction that is desirable. Leaders must use motivation as a tool for attracting team members to perform at optimum levels. Not only should money and recognition status be used in motivating workers but also the psychological well-being of the employee is equally important. The combination of extrinsic and intrinsic rewards yields the best results for both the leaders and their followers. According to Kuvaas et al. (2017), extrinsic motivation refers to the use of monetary items and promotions to motivate the workers while intrinsic motivation entails taking care of the psychological state of the staff members. The intrinsic reward comes second after the extrinsic reward for purposes of creating fairness among the workers (Kuvaas et al., 2017). First, in the paper, there is a discussion of how effectively leaders borrow the concept of intrinsic and extrinsic reward system to influence members. The banking and manufacturing sector forms the business contexts of the essay. Secondly, the discussion takes an approach of establishing how communication is applied effectively to bring persuasion tactics in leadership roles. The model applied in the paper is the model of persuasion tool. Thirdly, organizations have the mandate of sanctioning the type of communication channels to be established in the firm. The management stipulates the rules and regulations to follow while communicating with top management and other staff members. Sometimes, workers may establish an informal form of communication that is not recognized by organization rules. The below paper seeks to understand the informal communications at work known as grapevine communications. Also, establish some of the methods business leaders use to communicate via the grapevine. Lastly, the process of forming a team takes time and members have to work together for a while to achieve the best results. Members must undergo various stages to form a collective team with a common agenda. In this paper, various stages of a team will be looked into and how leaders can effectively execute their mandate at each stage.

  Intrinsic Reward, Extrinsic Reward, and Leadership

  The sale representatives of banks work with targets. Equally, the manufacturing companies set targets for both the marketing and factory team. In both sectors, motivation forms a key pillar in driving members to achieve set objectives. First, team leaders have the responsibility of directing members to accomplish the task. A good sales manager will set bonuses and compensation packages for members who achieve and surpass the set targets. The reward system set by the bank managers, factory managers, and marketing managers will act as a strong motivation for the team. After leaders settle the issue of unfairness among the group members, the intrinsic rewards will crop in to replace monetary compensations. The various leaders of departments will ask the workers to apply their experience and skills in conducting work activities. By letting employees work freely and building confidence in them, will bring out the zeal to work, as they feel valuable to the organization. The satisfaction workers get from their group leaders positively affect the mind, which in turn, motivates them to improve work through innovations and inventions.

   Persuasion Leadership Model and Communication

   According to Djulieta (2018), the persuasion tool model employs the intuition and influence abilities of leaders in directing followers to a certain path. The model recognizes the importance of communication by persuading people. Establishing a good communication channel with fellow employees is paramount for any leader who wants to win the heart of workers. Understanding the emotions and feelings of people is essential in establishing an appropriate way of communication. From the model, compromising is a virtue of leadership that promotes sanity among the group members. In the process of compromising, the leader will logically think through various ideas brainstormed by the members and come up with an effective solution to a problem. Accommodating members views bring more recognition from the group to encourage research and good relationship within the team. Bargaining with junior staff on team projects provides an opportunity for new ideas to steer the project forward. Leaders who establish a smooth communication channel with subordinates ends up performing well and achieving the best out of the workers. Delegating some of the duties and responsibilities make the workers feel wholly part of the organization, and this will alleviate fear among themselves to perform at optimum capacity.

   Grapevine Communication Methods

   Enuoh & Inyang (2016) defined grapevine communication as an informal and interpersonal communication that mostly arises in an organization due to constant social interactions between workers. In most cases, grapevine arises from gossips and rumors. According to Robinson & Thelen (2018), grapevine communication is orally and does not have any form of patterns. Mostly, this communication is used by workers at the same level. The communication fosters effective working relationships because it encourages peer to peer form of communication (Robinson & Thelen, 2018). When a leader communicates with members, it takes the form of horizontal communication. In the above case, a business leader applies the probability chain where he/she communicates with random members of the groups who will in return communicate with the rest of the members. Secondly, the leader selectively relays information to some of the members who may, in turn, pass the information to other members selected too. The above communication is known as a cluster chain, which assumes a distinctive selection of members to receive information.

     Leadership Tactics at Each Stage of a Team

     According to Bruce Tuckman, there are five stages of a team. They include the formation phase, the storming phase, the norming phase, the performing phase and adjourning phase (Bonebright, 2010). In the forming stage, most of the roles are unclear and members are polite while others might be anxious to know their roles. In the above stage, an effective leader will play the dominant character where he/she advises the members on the various duties of the team. In the storming stage, the members will start pushing a new style of working which might bring conflicts. The members might start questioning the styles applied by the leader in addressing matters. At the storming stage, the leader is expected to play cool and form a guidance tactic that will persuade the members to work in a united form, as they have a common agenda to achieve. In the norming stage, the members appreciate one another and collaborate in a harmonious way. At this stage, a team leader establishes an accommodative form of leadership to encourage healthy discussions in the team. The performing stage is marked with hard work and determination of members to achieve the team objectives. At the above stage, the team leader engages in supportive talks with the members and delegates some of the duties to concentrate on improving members skills. The adjourning stage provides the opportunity for the team leader to celebrate with members of the achievements and encourages them to be optimistic about the future (Tuckman & Jensen, 2010).


     Conclusively, the success of any organization lies on the workers. The organization staff requires proper treatment by team leaders and managers. Outside and inside motivation of employees is the best approach for seniors to undertake while handling junior staff members. Persuasion and communication are closely related. For a leader to effectively persuade the members, he/she must have good communication skills that will convince the people of his/her ideas. The secret of leadership success is establishing appropriate horizontal and vertical forms of communication in a group or body. From the discussion above, it is apparent that informal communications are important in the organization. Even though they are not recognized, they form a driving force of how employees work and relate with one another. When a group of people of the same level meets and discuss with each other, great ideas are likely to emerge. Letting the workers freely communicate among themselves encourages peace and integration. Furthermore, brainstorming sessions are more effective when employees meet and discuss informally in their own cocoons. There is a vivid account of how leaders can effectively manage their teams at the various stages of group development. The essay has acknowledged the importance of identifying where the team is positioned and establishing strategies that propel the group to the next stage. Finally, instilling the spirit of teamwork and focus form the epicenter of performing at high levels.


Bonebright, D. A. (2010). 40 years of storming: a historical review of Tuckman’s model of small group development. Human Resource Development International13(1), 111-120.

Djulieta, R. (2018). Persuasive Dimensions of Communication and their Impact on Managerial Activity. Total quality management.

Enuoh, R. O., & Inyang, B. J. (2016). APPROPRIATING THE GRAPEVINE COMMUNICATION CHANNEL IN THE ORGANIZATION. Sustainable Human Development Review2(2).

Kuvaas, B., Buch, R., Weibel, A., Dysvik, A., & Nerstad, C. G. (2017). Do intrinsic and extrinsic motivation relate differently to employee outcomes?. Journal of Economic Psychology61, 244-258.

Robinson, K. L., & Thelen, P. D. (2018). What Makes the Grapevine So Effective? An Employee Perspective on Employee-organization communication and Peer-to-peer Communication. Public Relations Journal12(2).

Tuckman, B. W., & Jensen, M. A. C. (2010). Stages of small-group development revisited. Group Facilitation: A Research & Applications Journal10, 43-48.

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