Transactional Leadership Style

Transactional leadership style. 

It relates to the contemporary theory of leadership. The leadership style plays as a business transaction between leader and follower. It is an economic base style. It does not provide attention to the emotional feelings of followers. It is a leadership style that has an economic base exchange relationship. It means the follower is rewarded by the leader only if he/ she performed a better task. The transactional leadership style emphasizes how to get things done. Application of transactional leadership Leader assigns the task to the followers. Then followers are liable to accomplish the tasks. They accomplish the task with the expectation of receiving rewards. If the task accomplishment is worthy of the followers, followers are positively rewarded. If it is not, followers are negatively rewarded. Those rewards are extrinsic rewards. Extrinsic rewards are monetary things and physical things. According to this leadership style, If the member performs better, the follower will be rewarded. If not, they will not be rewarded. Likewise, very material and very hard tactics are used to control the followers. Under the controlling transactional leadership style, rewards depend on the completion of tasks that have been assigned to followers. 

The transactional leader can influence in 3 ways. 

 1. Through contingent rewards 

2. Through management by exception (active) 

3. Through management by exception(passive) 

4. Laissez-faire. 

Contingent rewards

 It reflects followers’ rewards are contingent upon the behavior. If the member performs better, he will be rewarded better by the leader. 

Management by exception(active) 

Transactional leaders who use the authority of management by exception(active) are not always interfering to followers’ actions. Leader interfering for the actions of group of members, when they do not comply to rules, regulations and norms of the organization. Thus the leader actively participates for the actions of group members, when there is a deviation of actions of followers for adhering to the prescribed rules and regulations of the organization. Accordingly, it is the meaning of management by exception(active).

 Management by exception(passive) 

In this leadership style, leader involves interviewing the problems of members. Leader supports just interviewing the members of the organization. It is the management by exception(passive)

Laissez-faire

 A Laissez-faire leader delegates the authority and duties to subordinates and watches how the followers are performing. If they perform well, then the leader has the power to offer rewards. Otherwise, a leader will punish subordinates. Transactional leadership is an economic base exchange relationship. Exchanging rewards for the efforts putting by the subordinates and it always promotes uniformity by providing extrinsic rewards. No biases in this leadership style. Ultimately, it is the way of applying transactional leadership. 

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