Why Transactional Leadership is required in Successful Organizations

The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981.

Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leaders use disciplinary power and an array of incentives to motivate employees to perform at their best.

The term “transactional” refers to the fact that this type of leader essentially motivates subordinates by exchanging rewards for performance.

A transactional leader generally does not look ahead in strategically guiding an organization to a position of market leadership; instead, these managers are solely concerned with making sure everything flows smoothly today.

A leadership style based on the setting of clear goals and objectives for followers and the use of reward and punishments to encourage compliance. Transactional leaders are those who guide or motivate their followers towards established goals by clarifying role and task requirement.

Transactional leadership, sometimes referred to as managerial leadership; focuses on the interactions between leaders and followers.

The core of transactional leadership lies in the notion that the leader, who holds power and control his or her employees or followers, provides incentives for followers to do what the leader wants.

Transactional leaders utilize’ rewards and punishments to motivate .their followers. While it has limitations, it can be effective in certain situations. A transactional style can work well in cases where the problems are clear- cut and simple.

One of the major problems with this style is that it does not encourage group members to look for solutions to problems or to contribute creatively, which is why transactional leadership is not the best choice in complex situations where input from group members is required.

From above discussion, we can make sure that, transactional leadership sets up a series of rewards and punishments to motivate members of the organization.

If these, individuals adequately meet the leader’s goals and expectations, they will be rewarded for their hard work. On the other hand, if they fail or violate these goals and expectations, they may face punishment.

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