Detailed Analysis of Transactional Leadership Style in Business

This essay provides a comprehensive overview of transactional leadership, a management style characterized by its emphasis on supervision, performance, and the exchange between leaders and followers. Originating from Max Weber's work, transactional leadership focuses on controlling, organizing, and planning, often employing a system of rewards and punishments to motivate employees. The essay discusses key dimensions such as contingent rewards and active management, highlighting how leaders set SMART goals and monitor employee performance. It also examines the underlying assumptions of this leadership style, particularly the belief that employees are primarily motivated by rewards and the expectation that they will follow directives to achieve organizational goals. The provided references offer further reading on the subject, enhancing the reader's understanding of transactional leadership within business contexts. Desklib offers a range of solved assignments and study resources for students.

Running head: Transactional leadership
Leadership in business

Transactional Leadership
Transactional leadership
Transactional leadership style was first elaborated by Max Weber in 1947. This style
is mostly taken into consideration by the managers. It gives emphasis to the process of
management related to controlling, organizing and planning. One of the best example of the
leaders who considered this leaders style are McCarthy and De Gaulle. Transactional
leadership is one of the leadership styles that emphasis on supervising and overall
performance. It is seen that in this style of leadership the leaders promote the employees by
giving them rewards and punishments (Saleem, 2015).
In Transactional leadership style, the focus is on motivating and giving directions to
the followers. The transactional leaders conduct their activities by focusing on their formal
authority and responsibility in the company. It is analyzed that followers have to consider the
instructions given by the leader so that activities can be conducted smoothly (Hamstra et al.,
2014). This style is also known as "telling style".
The leaders motivate their employees by focusing on the system related to rewards
and punishments. If the subordinate conducts the activities according to the rules and policies
of the company then they are rewarded by the leader, and if they do not conduct the activities
according to the rules and policies then they are punished by their leaders. In this leadership
style, the exchange between the leader and follower is considered so that activities can be
conducted to accomplish goals and objectives (McCleskey, 2014).
There are various dimensions on which exchange is done. First is related with the
contingent rewards in which the leader makes the connection of the goals with the rewards
and also offer the resources which are important and also give rewards to the employees who
perform the activities in a proper manner.
The main focus of the leaders is to set SMART GOALS (specific, measurable,
attainable, realistic and timely) for the employees so that they conduct the activities with
efficiency. Next dimension is related to active management in which the leaders take active
participation in evaluating the work of their employees so that mistakes can be identified and
also rewards can be given if they are performing well. Also, it is seen that leaders offer a
good environment to the employees so that they conduct the activities as per the expectations
and can achieve goals and objectives of the company. If the employees are not performing
well then, they can punish the employees (Strom, Sears and Kelly, 2014).
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Transactional Leadership
There are many assumptions related to transactional leadership. The first assumption
is related to the employees who are motivated by giving rewards and punishment. Also, it is
the responsibility of the employee to conduct the activities according to the directions given
by the leader. So, it is seen that Transactional leadership style can help the employees to
conduct the activities according to the directions given by the leader and they can accomplish
goals and objectives.
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Transactional Leadership
References
Hamstra, M.R., Van Yperen, N.W., Wisse, B. and Sassenberg, K., 2014. Transformational
and transactional leadership and followers’ achievement goals. Journal of Business and
Psychology, 29(3), pp.413-425.
McCleskey, J.A., 2014. Situational, transformational, and transactional leadership and
leadership development. Journal of Business Studies Quarterly, 5(4), p.117.
Saleem, H., 2015. The impact of leadership styles on job satisfaction and mediating role of
perceived organizational politics. Procedia-Social and Behavioral Sciences, 172, pp.563-569.
Strom, D.L., Sears, K.L. and Kelly, K.M., 2014. Work engagement: The roles of
organizational justice and leadership style in predicting engagement among
employees. Journal of Leadership & Organizational Studies, 21(1), pp.71-82.
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