TRANSACTIONAL LEADERSHIP
This theory focuses on motivating and directing followers through considering their personal interests
1. Contingent Rewards: Transactional leaders link the goal to a reward, make the directions clear, state expectations, and necessary resources in order for subordinates to gain successful performance
2. Active Management by Exception: Transactional leaders also monitor the work of the subordinates on a daily basis to make sure that the rules are being followed and to prevent mistakes made by subordinates.
3. Passive Management by Exception: Transactional leaders only take an action when the expected performance is not achieved. Punishments are another method to intervene for transactional leaders by punishing those who do not meet the standards
4. Laissez Faire: Transactional leaders provide an environment that allows subordinates to make decisions on their own most of the time which means that direction lacks in this kind of leadership style.
- Transactional leaders get the authority from their formal authority of their position and responsibility in the organization.
- The duty of the subordinates is to follow the directions given to them by the leader
- The subordinates are rewarded if they do what the leader has instructed but if they fail to follow instructions, then the subordinates are given punishment.
1. Contingent Rewards: Transactional leaders link the goal to a reward, make the directions clear, state expectations, and necessary resources in order for subordinates to gain successful performance
2. Active Management by Exception: Transactional leaders also monitor the work of the subordinates on a daily basis to make sure that the rules are being followed and to prevent mistakes made by subordinates.
3. Passive Management by Exception: Transactional leaders only take an action when the expected performance is not achieved. Punishments are another method to intervene for transactional leaders by punishing those who do not meet the standards
4. Laissez Faire: Transactional leaders provide an environment that allows subordinates to make decisions on their own most of the time which means that direction lacks in this kind of leadership style.
ADVANTAGES OF TRANSACTIONAL LEADERSHIP
- Simple and easier to administer
- Ideas are easy to convey to subordinates
- Easier to give out punishments and rewards
DISADVANTAGES OF TRANSACTIONAL LEADERSHIP
- Disregards emotions and values
- Ignores will to power
- Can be used to exploit people
- Can fall apart in stressful situations
- Encourages competition that can be destructive