A Study to Analyze the Impact of Transactional Leadership in Cross-cultural Environmentcross-cultural Environment Case Study 2022

Running head: TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
A STUDY TO ANALYZE THE IMPACT OF TRANSACTIONAL LEADERSHIP IN
CROSS-CULTURAL ENVIRONMENT
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1TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
ABSTRACT
This study undertakes an analysis of the credibility of transactional leadership quality in a
diverse workplace and how it will be helping in motivating the employees in the workplace. The
study for addressing this particular research topic had taken the help of the pragmatic research
philosophy, descriptive research design, deductive research approach, secondary data collection
method and the qualitative data analysis method. The results of the study reveal that the
framework of transactional leadership is an effective one which can be used for resolving the
different issues related to workforce diversity like conflicts, cross-cultural miscommunication,
increased individualistic work propensity on the part of the workers and others. The traits of the
transactional leaders like focus on collective work, practicality, directive native, extrinsic
motivation and others are especially important in this relation. The study concludes by offering
three important recommendations, namely, encouraging the workers to indulge in collective
work, enhancing employee engagement and use of reward and punishment for addressing the
workforce diversity related issues along with the usage of the transactional leadership approach.

2TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the Study.......................................................................................................4
1.2 Research Problem..................................................................................................................4
1.3 Research Aim.........................................................................................................................5
1.4 Research Objectives...............................................................................................................5
1.5 Research Questions................................................................................................................6
1.6 Research Significance............................................................................................................6
2.0 Review of Literature..................................................................................................................6
2.1 Concept of Workplace Diversity...........................................................................................6
2.2 Benefits of Workforce Diversity...........................................................................................7
2.3 Issues related to Workplace Diversity...................................................................................8
2.4 Concept of Transactional Leadership....................................................................................8
2.5 Traits needed by Transactional Leaders................................................................................9
2.6 Transactional Leaders and Workforce Diversity.................................................................10
3.0 Research Methodology............................................................................................................11
4.0 Findings and Discussion..........................................................................................................11
4.1 Summary of Findings..........................................................................................................11
4.2 Discussion of Findings........................................................................................................13
5.0 Conclusion and Recommendations..........................................................................................15

3TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
5.1 Conclusion...........................................................................................................................15
5.2 Recommendations................................................................................................................16
5.3 Limitations of the Study......................................................................................................17
5.4 Future Scope........................................................................................................................17
References......................................................................................................................................18

4TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
1.0 Introduction
1.1 Background of the Study
According to Forbes.com (2020), the workplaces of the different USA business
corporations presently have more than 25.4% of workers who rather being Americans are
indigenous people, Hispanic, African Americans, immigrants and others. Livermore and Soon
(2015) are of the viewpoint that the primary objective of the different American corporations for
enhancing its workforce diversity not in terms of the above mentioned aspects but also in terms
of male-female ratio is to reap the benefits that a diverse workforce offers. For instance, a highly
diverse workforce offers the opportunity to enhance their overall productivity, achieve their
business or strategic goals, create a continuous learning environment, facilitate the exchange of
knowledge and skills among the workers, use the insights or the inputs for the improvement of
the quality of products or services offered by them and others (Walumbwa, Lawler & Avolio,
2017). These aspects in turn had influenced the majority of the business corporations in the
present times to inculcate a diverse workforce. However, at the same time it is seen that there are
various issues related to the management of a diverse workforce that the different corporations
are presently facing like disputes or conflicts, cross-cultural miscommunication and others
(McCleskey, 2014). These issues that the corporations face related to the usage of a diverse
workforce hinder the attainment of the desired results on the score of the usage of a diverse
workforce and therefore often discourage the corporations from using the same.
1.2 Research Problem
Ma and Jiang (2018) are of the viewpoint that it is true that a diverse workforce offers
various benefits to the corporations yet at the same time it is seen that if it not being managed

5TRANSACTIONAL LEADERSHIP IN CROSS-CULTURAL ENVIRONMENT
adequately then rather than positively benefitting the corporations it can negative affect the same.
Adding to this, Koveshnikov and Ehrnrooth (2018) have noted that the majority of the issues that
the corporations face related to the management of a diverse workforce are related to the aspect
of leadership and therefore can be easily managed if the corporations use an effective leadership
approach. However, the important issue arises since it is seen that the majority of the
corporations even in the present times are merely focusing on effectively managing the diverse
aspects of their business rather than focusing adequately on the aspect of leadership (Rodrigues
& Ferreira, 2015). Furthermore, some of the corporations have started to use transformation
leadership approach, situational leadership approach, transactional leadership approach and
others however they are not specifically intended for the resolution of the workforce diversity
related issues faced by them (Lvina, 2015). Thus, the study focuses on the workforce diversity
related problem that the corporations are presently facing and also the manner in which they can
be resolved through the usage of the transactional leadership approach.
1.3 Research Aim
The aim of the paper is to assess the credibility of transactional leadership quality in a
diverse workplace and how it will be helping in motivating the employees in the workplace.
1.4 Research Objectives
1. To understand the various ways by which the needs of a diverse workplace can be
managed
2. To analyze the various traits of the leaders who use transactional leadership
3. To evaluate ways in which the transactional leaders can manage the needs of a diverse
workforce