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Transactional Leadership: By: Rona Mae B. Oquindo Professor: Princess Jeah Marie Geroso Calvo, DPA Course Code: PAM 206

Transactional leadership focuses on exchanges between leaders and followers to achieve organizational goals. The leader establishes rewards and punishments for meeting or not meeting expectations. This leadership style was described by Max Weber in 1947 and includes dimensions like contingent reward and management by exception. Transactional leaders emphasize structure, rules, efficiency, and resistance to change. While it provides clear guidelines and measures success, it lacks flexibility and does not encourage creativity or independent thinking.

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Rona Mae Bedoya Oquindo
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48 views10 pages

Transactional Leadership: By: Rona Mae B. Oquindo Professor: Princess Jeah Marie Geroso Calvo, DPA Course Code: PAM 206

Transactional leadership focuses on exchanges between leaders and followers to achieve organizational goals. The leader establishes rewards and punishments for meeting or not meeting expectations. This leadership style was described by Max Weber in 1947 and includes dimensions like contingent reward and management by exception. Transactional leaders emphasize structure, rules, efficiency, and resistance to change. While it provides clear guidelines and measures success, it lacks flexibility and does not encourage creativity or independent thinking.

Uploaded by

Rona Mae Bedoya Oquindo
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
By: Rona Mae B. Oquindo
Professor: Princess Jeah Marie Geroso Calvo, DPA
Course Code: PAM 206
Transactional Managerial
Leadership Leadership

It is a leadership style where the executive relies on rewards


and punishments to achieve optimal job performance from his
or her subordinates.

It focuses on results, conforms to the existing structure of an


organization and measures success according to that
organization’s system of rewards and penalties.
MAX
WEBER
“ the exercise of control on the basis of knowledge”

Transactional Leadership was described by him in 1947.


He was a German sociologist, philosopher, jurist, and
political economist, who is regarded today as one of the
most important theorists on the development of modern
Western society.
DIMENSIONS OF
TRANSACTIONAL
LEADERSHIP
BERNARD M. BASS, JANE HOWELL AND
BRUCE AVOLIO
(researchers)

 Contingent reward, the process of setting expectations


and rewarding workers for meeting them

 Passive management by exception, where a manager


does not interfere with workflow unless an issue arises

 Active management by exception, in which managers


anticipate problems, monitor progress and issue
corrective measures
CHARACTERISTICS
OF TRANSACTIONAL
LEADERS

 Focused on short term


goals
Transactional  Favor structured policies
Leaders and procedures
 Thrive on following rules
They have formal authority and doing things correctly
and positions of responsibility  Revel in efficiency
in an organization.  Very left-brained
 Tend to be inflexible
 Opposed to change
CHARACTERISTICS OF
TRANSACTIONAL LEADERSHIP

 Extrinsic Motivation

 Practicality

 Resistance to change

 Discourages independent thinking


ADVANTAGES OF DISADVANTAGES OF
TRANSACTIONAL TRANSACTIONAL
LEADERSHIP LEADERSHIP
 Does not encourage
 Helps in effectively
creativity
removing doubt or
uncertainty
 Puts excessive reliance on
the knowledge and
 Helps in measuring
expertise of a single
success by setting clear
person
guidelines
 The contingent reward
 Clear and easy to
system has been found
understand framework
ineffective in studies
structure
 No flexibility to cater to
 Helps in reducing costs
emotions of employees
because of stringent rules
 Increases productivity
Example:

HISTORY:

The transactional leadership style was widely


used after World War II in the US. This was a
time when the government concentrated on
rebuilding and required a high level of structure
to maintain national stability.
Example:

POPULARITY:

Bill Gates was known to be a transactional leader.


He used to visit new product teams and ask
difficult questions until he was satisfied that the
teams were on track and understands the goal.
Changes in team members were done and cash
rewards and promotion were given to those
excellent in their job.
Example:

PUBLIC SERVICE:

This style is widely used by our PNP , AFP and


first responders. They are using this for its
consistency. 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.

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