Transactional leadership theory
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Transcript of Transactional leadership theory
“TRANSACTIONAL LEADERSHIP
THEORY”Group 7
Astin UtariZelvia Liska Afriani
Course: Leadership and
Educational Management
DEFINITION Transaction is the act of transacting within or between groups (as
carrying on commerical activities) – (Business dictionary, 2016)
Transactional leadership is a style of leadership in which the leader promotes compliance of his followers through both rewards and punishments. Also known as “Management theories” (Odumeru & Ifeanyi, 2013)
HISTORY First described by Max Weber in
1947. Further developed by Bernard
M. Bass in 1981.
• This style is most often used by the managers.• It focuses on the basic management process of controlling,
organizing, and short-term planning.
Some Assumptions Related to Transactional Leadership Employees are motivated by reward and punishment. The subordinates have to obey the orders of the superior. The subordinates are not self-motivated. The main goal of the follower is to obey the instructions of the leader. The style can
also be mentioned as a ‘telling style’.
Here, the exchange between leader and follower takes place to achieve routine performance goal.These exchanges involve four dimensions:
Contingent Rewards Active Management by Exception
Passive Management by Exception Leissez-Faire
Examples of Transactional Leaders Norman Schwarzkopf Vince Lombardi Bill Gates Howard Schultz
Here are some of the characteristics of transactional leaders:
Focused on short-term goalsFavor structured policies and
proceduresThrive on following rules and doing
things correctlyRevel in efficiencyVery left-brainedTend to be inflexibleOpposed to change
The advantages and disadvantages of transactional leadership
THE ADVANTAGES AND DISADVANTAGES OF TRANSACTIONAL LEADERSHIP
ADVANTAGES It can be very effective for motivating subordinates and eliciting
productivity. Clear structured Achieves short-term goals quickly Rewards and penalties are clearly defined for workers
DISADVANTAGES This type of leadership is flawed since it motivates
people only on the base level Creativity is limited since the goals and objectives are
already set Ego states are difficult to difine Does not reward personal initiative
BENEFITS• It is easy for workers to complete tasks successfully. This works
because transactional leadership is simple to learn and does not require extensive training.
• It is also easier to apply in a crisis situation, where everyone must know exactly what is required of them and how a task is to be done under pressure.
CONCLUSION The transactional style of leadership is viewed as insufficient, but
not bad, in developing the maximum leadership potential. It forms as the basis for more mature interactions but care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an environment permeated by position, power, perks, and politics.
References Business Dictionary. (2016). Retrieved from
http://www.businessdictionary.com/definition/transactional-leadership.html#ixzz40afhsheR
Maier, C. (n.d). The advantages of transactional leadership. Retrieved from http://www.ehow.com/info_8460959_advantages-transactionalleadership.html
Odumeru, J.A., & Ifeanyi, G.O. (2013). Transformational vs transactional leadership theories: Evidence in literature. International Review of Management of Business Research, 2(2), 355-361.