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Transactional Leadership
A leadership style focused on an exchange process based on the fulfillment of contractual obligations and is typically represented as setting objectives and monitoring and controlling outcomes.
Transactional leadership is a pragmatic style where leaders incentivize performance by offering rewards for clear, contractually agreed-upon tasks. It has been shown to sometimes be as effective as transformational leadership in achieving good employee outcomes.
This leadership style motivates by setting clear goals and providing rewards, which can lead to a sense of fairness and trust in the organization. It consists of two main practices: clearly defining roles and rewarding the fulfillment of these roles, and actively managing and correcting standards when necessary.
Source: The Wake Up Call research commissioned by The Concord Leadership Group written by Adrian Sargeant, PhD and Harriet Day (2018).
