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Transactional Leadership: Give Something To Get Something

This document discusses transactional leadership, which is based on the assumptions that people are motivated by reward and punishment. Transactional leadership creates clear structures with a chain of command where subordinates agree to do their job and cede authority to their manager, whose prime purpose is to ensure subordinates do what they are told. The leadership style focuses on defining performance standards and linking goals to contingent rewards or corrective actions. While this style provides clear expectations and short-term results, it has limitations in accounting for individual motivations and being rigid in the leader-subordinate relationship.

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Maricris Blgts
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29 views10 pages

Transactional Leadership: Give Something To Get Something

This document discusses transactional leadership, which is based on the assumptions that people are motivated by reward and punishment. Transactional leadership creates clear structures with a chain of command where subordinates agree to do their job and cede authority to their manager, whose prime purpose is to ensure subordinates do what they are told. The leadership style focuses on defining performance standards and linking goals to contingent rewards or corrective actions. While this style provides clear expectations and short-term results, it has limitations in accounting for individual motivations and being rigid in the leader-subordinate relationship.

Uploaded by

Maricris Blgts
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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TRANSACTIONAL

LEADERSHIP
Give something to get something

Prepared by: MBL


ASSUMPTIONS
People’s motivation

reward and punishment.

Social systems
work best with a clear chain of command

agreed to do a job
cede all authority to their manager

prime purpose
subordinate do what their manager tells them to do
STYLE
CREATE CLEAR STRUCTURES
subordinates, rewards, Punishments
EARLY STAGE
negotiating the contract
WORK ALLOCATION
fully responsible
MANAGEMENT BY EXCEPTION PRINCIPLE
defined performance
Four Dimensions

Contingent Reward Behavior

Passive Management by Exception

Active Management by Exception

Laissez-Faire
• Contingent Rewards:
- link the goal to rewards,
- clarify expectations,
- provide necessary resources,
- set mutually agreed upon goals,
- and provide various kinds of rewards for successful
performance.
• Active Management by Exception:
- actively monitor the work of their subordinates,
- watch for deviations from rules and standards
- and taking corrective action to prevent mistakes.
• Passive Management by Exception:
- intervene only when standards are not met or when
the performance is not as per the expectations.
- may even use punishment as a response to
unacceptable performance.
• Laissez-faire:
- provides an environment where the subordinates get
many opportunities to make decisions.
- The leader himself abdicates responsibilities and
avoids making decisions and therefore the group
often lacks direction.
Benefits of Transactional Leadership style
• Simple and Low Cost (no extensive training just
rewards or punishment
• Clear and Easy to Follow (leaves little room for
misinterpretation or ambiguity)
• Powerful Motivator (Money and other tangible
rewards are a proven and reliable motivator)
• Gets Results Fast (works well when short-term
results are needed fast.)
Limitations
• Motivation (assumes a very simplistic view of
motivation, which fails to account for individual
differences)
• Rigidity (A transactional leader is rigid in his
expectations about the working relationship, and
believes the role of subordinates is to do as they are
told )
• Blame (It's never the fault of a transactional
leader when tasks go wrong)
• Reliance on the Leader (Transactional leaders
must always be present to guarantee that the
work will get done properly

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