Transactional Leadership Three Components of Effective Leader Behavior -

Transactional Leadership Three Components of Effective Leader Behavior

transactional leadership

Transactional leadership is a subset of one of the three main styles of leadership which are also known as authoritarian, democratic, and free-range leadership. Transactional leadership is also a critical element in the development of a viable democratic leadership model. It is a key component to the effectiveness of any management system. In a functional organization, transactional leadership is most likely to occur when there is a power imbalance between the managerial staff and the people who are responsible for ensuring the smooth running of the organization. The concept of transactional leadership is quite simple: it places the management under the authority of a single individual who has the skill, power, and knowledge necessary to direct and influence the relationship between the managerial staff and the workers in the organization.

It Frees The Manager

The inherent value of this leadership style is that it frees the manager from a wide range of problems and potential pitfalls. One of the most important lessons to be learned from the transactional leadership style is the importance of the rewards and punishments associated with it. In the case of the business, it means putting the emphasis on individual accountability. A manager who exercises the benefits of transactional leadership enjoys the rewards of motivating others to work harder, perform better, face problems, face setbacks, and rise above circumstances that might cause their colleagues to feel discouraged and blame them for poor performance.

How Are Mountains Determined?

However, one must understand that there is no single reward or punishment that can be tagged as being appropriate or suitable for every situation. In fact, the rewards and punishments for this leadership style will vary depending on the situation, the individuals involved, and the factors governing such situations. There are times when this transactional leadership style works very well. At other times, they fail catastrophically.

A good example of where transactional leadership works well is when the leader ensures that his followers understand the relationship between him and them. Leaders should never allow their followers to believe that they do not have a direct line of communication or authority with the leader. Leaders must clearly define each of their responsibilities to their followers. In addition, such leaders should also provide clear consequences for breaking the rules.

So What Constitutes “Boulder”?

Another great benefit of transactional leadership is its focus on specific tasks and goals. This means that leaders are clear about what they expect from their group members in doing their tasks. This focus on group performance helps leaders keep their followers focused on their goals and helps them monitor and evaluate their performance. For example, if an individual leader is looking to increase sales, he could talk to his group members about the need to create more customer demand and how increased customer demand would help achieve that goal.

Last Words

As you can see, transactional leadership is very different from self-motivation. While it may sound like an oxymoron at first, once you understand how leader rewards and punishments work, you can apply this understanding to your own leadership style. You can use your rewards and punishments to encourage your subordinates, to communicate to your followers that you value them and to remind them of their own personal strengths. As you practice this type of leadership, you will soon find yourself becoming a much better leader because you are learning how to lead from a position of self-awareness. And best of all, you will discover that you are also becoming a much more effective leader for your own self-motivation.

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