A Look at the Benefits of Transactional Leadership Style

Style of leadership plays a crucial role in the development of an organization. Transactional leadership is the leadership style that is often used by many companies. Transactional leadership believes that punishment and reward motivate people. This leadership also assumes that when people agree to perform a particular task, a part of this agreement is to relinquish all power to his boss. The leader has control and power over subordinates. The main objective of this work is to obey the orders of their superiors. The idea is that when a subordinate has a job, he or she undertakes to obey their leader totally. The “operation” is money or any other award that the company pays its staff for their achievement and effort. The relationship between the subordinate and the leader becomes transactional. Transactional leadership the leader has the right to punish their subordinates if their performance does not agree with the standard default.

Transactional leadership makes clear that what is needed and expected of their subordinates. It also mentions that subordinates will follow orders if prize seriously. Sometimes sanctions are not mentioned but it is understood. In the early stages of the transactional leadership, subordinate is in the process of negotiating the contract. The contract specifies fixed salary and benefits to be given to subordinates. The awards are given to their subordinates to implement the effort. Some organization use incentives to encourage their subordinates for greater productivity. Transactional leadership is a way to enhance the performance of their subordinates by giving them rewards. Transactional leadership is also called as’ true leadership style as it focuses on short-term goals rather than long-term objectives.

In Transactional leadership, when the leader assigns work to subordinates, then it is the responsibility of subordinates to see that the task is completed on time. If the assignment is not completed on time or if something is punishment for its failure. But if the task in time, the subordinates are rewarded for successfully completing the task. Subordinates are also award and praised for exceeding expectations. A subordinate whose performance is below expectations and is liable to take some steps to improve its performance.

Transactional leadership has more than one “style saying. Transactional leadership is based on the fact that the reward or punishment depends on the action. Although researchers have highlighted its limitations, transactional leadership is still used by many employers. More and more companies are adopting transactional leadership to enhance the performance of their employees. This approach is common in the real workplace.

The main limitation of this leadership is that it assumes that people are largely motivated by simple rewards. Transaction under the leadership, employees can not do much to improve job satisfaction. Transaction leadership has been ineffective in providing skilled workers to their organization. This style of leadership is less interested in changing
working environment. Experts do not recommend this approach. Transactional leadership focuses more on the management of punishments and rewards.