What is a key element of Transactional Leadership?

A key element of Transactional Leadership is the utilization of rewards and penalties. This leadership style is based on a system of exchanges between leaders and their followers, where compliant behavior is reinforced through rewards, and noncompliance is addressed through penalties. Transactional leaders focus on maintaining routine and ensuring that tasks are completed effectively by providing clear structures and expectations.

This approach differs from other leadership styles that might emphasize inspiring followers or promoting personal development. Instead, transactional leadership is pragmatic and focused on short-term objectives, aiming to achieve performance through established systems of accountability. As such, it fosters a structured environment where motivation is driven primarily by external incentives rather than intrinsic motivation or personal empowerment.