TRANSACTIONAL

LEADERSHIP
Give something to get
something

Prepared by: MBL

 compliance by E
followers through both
rewards and
PROMOT
punishments.
supervision, FOCUS
organization, and
performance
LEADERSHIP
managerialleadershi NAL
p TRANSACTIO
ASSUMPTIONS
Peoples 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
 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
 DAILY TRANSACTIONAL AND
TRANSFORMATIONAL
LEADERSHIP AND DAILY
EMPLOYEE ENGAGEMENT
Kimberley Breevaart1*, Arnold Bakker1, Jrn Hetland2,
Evangelia Demerouti3, Olav K. Olsen4 and Roar Espevik2,4
AIM

To examine the daily influence of

transformational leadership, contingent
reward, and active management-by-
exception (MBE active) on followers daily
work engagement.
METHOD

Make comparison between the unique

contribution of these leadership
behaviors and focus on the work
environment to examine how these
leadership behaviors influence followers
daily work engagement
Multilevel regression
METHODS

61 naval cadets filled out a diary

questionnaire for 34 days

RESULT

cadets were more engaged on days

that their leader showed more
transformational leadership and
provided contingent reward.
MBE active was unrelated to followers
work engagement
PRACTICAL
IMPLICATIONS
leaders should only use MBE
active on days that it is
extremely important for
followers to do exactly as they
are told, for example, in
threatening or urgent
situations.
leaders may not always be
aware of how their behavior
affects followers, it may prove