Transactional Leadership
Transactional Leadership
Transactional Leadership
LEADERSHIP
Give something to get
something
Social systems
work best with a clear chain of command
agreed to do a job
cede all authority to their manager
prime purpose
subordinate do what their manager tells them to do
STYLE
CREATE CLEAR STRUCTURES
subordinates, rewards, Punishments
EARLY STAGE
negotiating the contract
WORK ALLOCATION
fully responsible
MANAGEMENT BY EXCEPTION
PRINCIPLE
defined performance
Four Dimensions
Laissez-Faire
Contingent Rewards:
- link the goal to rewards,
- clarify expectations,
- provide necessary resources,
- set mutually agreed upon goals,
- and provide various kinds of rewards for
successful performance.
Active Management by Exception:
- actively monitor the work of their
subordinates,
- watch for deviations from rules and
standards
- and taking corrective action to prevent
Passive Management by Exception:
- intervene only when standards are not
met or when the performance is not as per
the expectations.
- may even use punishment as a response
to unacceptable performance.
Laissez-faire:
- provides an environment where the
subordinates get many opportunities to
make decisions.
- The leader himself abdicates
responsibilities and avoids making
decisions and therefore the group often
lacks direction.
Benefits of Transactional
Leadership style
Simple and Low Cost (no extensive
training just rewards or punishment
Clear and Easy to Follow (leaves little room
for misinterpretation or ambiguity)
Powerful Motivator (Money and other
tangible rewards are a proven and reliable
motivator)
Gets Results Fast (works well when short-
term results are needed fast.)
Limitations
Motivation (assumes a very simplistic view
of motivation, which fails to account for
individual differences)
Rigidity (A transactional leader is rigid in
his expectations about the working
relationship, and believes the role of
subordinates is to do as they are told )
Blame (It's never the fault of a
transactional leader when tasks go
wrong)
Reliance on the Leader (Transactional
leaders must always be present to
guarantee that the work will get
done properly
DAILY TRANSACTIONAL AND
TRANSFORMATIONAL
LEADERSHIP AND DAILY
EMPLOYEE ENGAGEMENT
Kimberley Breevaart1*, Arnold Bakker1, Jrn Hetland2,
Evangelia Demerouti3, Olav K. Olsen4 and Roar Espevik2,4
AIM
RESULT