The Importance Of Transactional Leadership

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Transactional. Aimed at keeping organizations running efficiently, transactional leaders control an organization and followers with rules and procedural compliance, while maintaining stability and efficiency within the organization. Moreover, transactional leadership is leader-follower relationship model that uses trust and a rewards system to accomplish tasks and attain goals. Transactional leaders assert the order for task completion, how to complete those tasks, monitor performance, and offer rewards or consequence based upon satisfaction of performance. Studying the Pakistan banking industry, Zareen et al. (2014) reports transitional leadership has a greater impact on employee motivation as opposed to laissez-faire and transactional leadership. In examining spiritual leadership within organizations,…show more content…
Transactional leadership is leader-follower exchange, and research indicates this style has the strongest impact on follower motivation as it elicits a greater commitment towards organizational goals (Nanjundeswaraswamy & Swamy, 2014; Zareen et al., 2014). Build on trust, transactional leaders communicate what to do, how to do it, and monitor performance. Giltinane (2013) suggested transactional leadership is task-orientated and is effective in situations with deadlines or in times of emergency. These leaders rely on extrinsic organizational rewards and punishments to motivate employees to attain goals (Arslan & Uslu, 2014; Nanjundeswaraswamy & Swamy, 2014; Zareen et al., 2014). Opposing intrinsic motivation, extrinsic motivation uses external stimuli to influence employee behaviors such as bonuses, promotions, and benefits for achieving satisfactory performance, or negative stimuli such as corrective criticism or negative reinforcement for unsatisfactory performance (Arslan & Uslu, 2014; Fry, 2003; Zareen et al., 2014). In this extrinsic-based leadership
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