3. It is an effective leadership approach that focuses solely on the relationship between a leader and his subordinates. Transformational leaders specialize in: The leader encourages followers to explore new ways of doing things and new opportunities to learn. Transactional leadership, also known as managerial leadership, is a leadership style where the executive relies on rewards and punishments to achieve optimal job performance from his or her subordinates. Leaders who implement this style focus on specific tasks and use rewards and punishments to motivate followers. The core of transactional leadership lies in the notion that the leader, who holds power and control over his or her employees or followers, provides incentives for followers to do what the leader wants. All of these aspects are important, but transactional leaders care very little about the learning and growth of their team. Let’s study each trait and its relation to the leadership style, as well as the different ways a leader could train to improve these traits. There are marked differences between transactional leadership and transformational leadership. The role of a transactional leader is primarily passive, in that it sets policy and assessment criteria and then intervenes only in the event of performance problems or needs for exceptions. Transactional leader brings followers together on a joint purpose of the goal. It is an effective leadership approach that focuses solely on the relationship between a … When employees perform as desired, they get rewarded; and if they don’t, they get punished, or the reward is withheld. Sometimes, whether or not this leadership style is the best way to approach the organization, depends on the situation, the followers, the organization’s values, and the type of leader. Transactional Leadership - Outdated? Transformational Leader works along with followers by … Definition of transactional leadership: Style of leadership that is based on the setting of clear objectives and goals for the followers as well as the use of either punishments or rewards in order to encourage compliance with these goals. Transformational leaders specialize in: It is heavily dependent upon the leader. When it comes to traditional forms of leadership, one of the most common approaches used is known as transactional leadership. Transactional leadership is a leadership style that values structure and order within each relationship. Through a rewards and punishments system, transactional … The transformational leader motivates workers and understands how to form them into integral units that work well with others. Transactional leadership is a style of leadership in which leaders promote compliance by followers through both rewards and punishments. Transactional Leadership is based on the transactions – a give and take basis. On the other hand, a "transformational leader" … Differences between transformational leadership and other leadership styles. Transactional leadership style involves a system of rewards and punishment based on the performance of an employee. If the leader does not evaluate strengths and weaknesses well to determine rewards and consequences, then their leadership approach will be ineffective. This style of leadership is considered border authoritative and can stifle if not engaged in the right way. It is an effective leadership approach that focuses solely on the relationship between a leader and his subordinates. Transactional leadership depends upon the skills of each leader to be successful. Transactional leadership emphasizes results, stay within the existing structure of an organization and measures success according to that organization’s system of rewards and penalties.