Transactional leadership
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Transactional leaders use conventional reward and punishment to gain compliance from their followers.
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[edit] Interaction and Motivation
They have continuing, often unspoken interaction that take such forms as:
- "Do as I say and you will get a raise."
- "Meet this quota or you will get fired."
These are extrinsic motivators which bring only minimal compliance from followers. Some followers will supply their own internal (intrinsic) motivation such as pride in their work, but this is a matter of chance.
Transactional leaders accept the goals, structure and culture of the existing organization. They must do so because this type of leadership is ineffective at bringing significant change.
[edit] Types of Transactional Leadership
There are two components of Transactional Leadership
[edit] Contingent Reward
Here the leader provides rewards if, and only if, subordinates perform adequately and/or try hard enough. It contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
[edit] Management by Exception (MBE)
MBE is a conservative approach whereby additional resources are applied in response to any event falling outside of established parameters. It seeks to minimize the opportunity for exceptions by enforcing defensive management processes.
[edit] Personal Characteristics of Transactional Leaders
Transactional leaders tend to be directive and sometimes dominating. They tend to be action oriented.
