What is Transactional Leadership?- Definition, 5 Examples, Quotes & Style

“When placed in command, take charge.” – Norman Schwarzkopf

Transactional leadership is a leadership style that emphasizes the relationship between leaders and followers. It is based on a system of rewards and punishments to motivate and guide followers towards achieving specific goals.

Moreover, Leaders who adopt a transactional leadership style set clear expectations and establish performance standards for their followers. They closely monitor the progress of their subordinates and intervene when necessary, taking corrective actions to ensure adherence to established rules and procedures. In this leadership style, leaders provide rewards, such as bonuses or promotions, to followers who meet or exceed expectations, while those who fail to meet standards may face disciplinary actions or other forms of negative consequences.

In addition to this, Transactional leaders focus on task completion, efficiency, and maintaining order within the organization. While this approach can be effective in promoting productivity and meeting short-term goals, it may not encourage creativity, innovation, or long-term growth and development.

What is Transactional Leadership?

However, The term transactional leadership was coined by Max Weber, a 20^th-century sociologist and It is based on exchanges between the leader and follower or workers. Further, This leadership style relies on attaining a particular goal through a system of rewards and punishment.

5 Examples of Great Transactional Leader Such as

Bill Gates – He wants to see that efficiencies are met and that nothing falls through the cracks.

Norman Schwarzkopf – he handled tens of thousands of U.S. troops in Operation Desert Storm in 1990and with his Leadership, he saved thousands of lives.

Jacinda Ardern– New Zealand’s prime minister, took swift and courageous action to lock down the country in the first months of the pandemic.

Joseph McCarthy- an American politician served as a transactional leader his entire life.

Howard Schultz- In fact, CEO of Starbucks is a great transactional leader.

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What is Transactional Leadership Theory?

According to the notion, workers will accomplish their tasks as the transactional leader wants them to in exchange for the leader providing something the workers want, such as pay. The behavioural belief systems that both positive and negative reinforcements operate to benefit an organization underpin its theory.

What is the Transactional leadership model?

The transactional leadership model is based on an exchange or transaction between the leaders and the workers. Also, This relationship between a leader and subordinates is founded on beliefs that imply people are not self-motivated to complete their work and require structure, guidance, and supervision to do it.

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What is Transactional Leadership Style?

A set of fundamental concepts defines the transactional leadership style. Also, A transactional leader believes in the chain of command and feels that it must be appropriately followed. Additionally, This leadership approach soothes the workflow by ensuring that employees understand their assigned duties.

5 Transactional leadership characteristics

1.Hierarchical

2.Micromanaging

3.Passive

4.Practical

5.Act with urgency

Difference b/w Transactional and transformational leader

1. Transactional Leadership is responsive, whereas transformational Leadership is proactive.
2. Transactional Leadership is bound to organizational culture, whereas transformational Leadership is not.
3. It is based on rewards and punishment, whereas transformational Leadership is based on exchanges and rewards.
4. It’s main focus is on planning and execution, whereas in transformational leadership main focus is on innovation.
5. In transactional Leadership, intellectual stimulation or motivation is less than transformational Leadership.

Examples of transactional Leadership

1. Military

Transactional Leadership was shown by Norman Schwarzkopf in Operation Desert Storm in 1990, and with his Leadership, he saved thousands of lives.

2. Politics

Moreover, Jacinda Ardern-New Zealand’s prime minister showed transactional Leadership by taking an immediate and courageous feat to lock down the country in the preceding months of the pandemic.

3.Leadership in organizations

Transactional Leadership, can also be seen in first responder organizations.

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 Transactional Leadership Books

So, Here are some books:

1. Start with Why: How Great Leaders Inspire Everyone to Take Action by Simon Sinek
2. Developing Potential Across a Full Range of Leadership TM: Cases on Transactional and Transformational Leadership by Bruce J. Avolio   & Bernard M. Bass

Five best leadership quotes

So,Here are leadership lessons by some famous people:

1. “Leadership is the art of getting someone else to do something you want done because he wants to do it.” Dwight D. Eisenhower
2. Management is doing things right; Leadership is doing the right things.” Peter F. Drucker
3. “People buy into the leader before they buy into the vision.” John Maxwell
4. You get in life what you have the courage to ask for.” Nancy D. Solomon
5. A man who wants to lead the orchestra must turn his back on the crowd.” Max Lucado

 5 Advantages & Disadvantages of Transactional Leadership

Thus, Five advantages are:

1. It is a systematic and easy to understand model because employees and leaders know what exactly is to be done.
2. Money and perks might motivate some people.
3. It is cost-effective.
4. Create short term, achievable goals.
5. It motivate team members to maximize productivity.

Thus, Five disadvantages are:

1. Leaders may be passive and avoid taking action.
2. Leaders may fail to inspire others and thus fail to achieve the desired goal.
3. Since the emphasis is on individual performance, teamwork and collaboration may be less.
4. Its limits innovation.
5. Success is within the hand of the leader

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