What is transactional leadership?

1 answer

Transactional leadership is a style of leadership in which leaders focus primarily on the exchanges between themselves and their followers. It is based on a transactional model, where leaders use a system of rewards and punishments to motivate and influence their followers.

In transactional leadership, leaders provide clear instructions and expectations to their followers, and they set specific goals and objectives. They establish a system of rewards, such as bonuses or promotions, to encourage their followers to meet these goals, and they also impose penalties or punishments for failures or non-compliance.

This leadership style emphasizes role clarity, task completion, and efficiency. Leaders monitor and control their followers' performance, ensure that standards are met, and provide feedback and evaluations based on the achievement of goals.

Transactional leaders typically focus on short-term goals and outcomes, and their primary concern is ensuring that tasks are completed according to the established procedures and agreements. They rely on a structured and formalized approach to leadership, establishing clear roles, responsibilities, and performance expectations.

Although transactional leadership can be effective in certain situations, it is often criticized for its lack of creativity, innovation, and employee development. It is mainly suited for situations where tasks are clearly defined, and when there is a need for strict monitoring and control.