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10 Transactional Leadership – Characteristics | Examples | Style

(Last Updated On: April 15, 2021)

A transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term as per transactional leadership definition. Transactional leaders are persons who are valuable in order and structure, with transactional leadership examples.

Transactional Leadership

They can manage military operations, manage large corporations, or lead international projects, which require rules and regulations to meet the goal of time or organize public and supply organically in transactional leadership theory. Transactional and transformational leadership go hand in hand. Transactional leaders are not a good fit for places where creativity and innovative ideas are valuable.

Transactional leadership is often compared to variable leadership style. The leadership of the transaction depends on self-reliant people who work well in a structured, directed environment. On the contrary, transformed leadership wants to inspire and inspire workers to choose to influence others.

Differences between transactional leadership and other leadership styles

Transaction leaders are different from both structural and converting structures and methods. Characteristic leadership has influenced the impact of a group or organization for creating a better place in the world in every field of transactional leadership, including in nursing.

In relation to the leadership of the transaction, the person’s performance is stressed and he determines how much he conducts in a structured environment. Know inspirational traits for charismatic leaders and be one of them with natural transactional leadership characteristics.

The difference between transactional leadership and conversion leadership is also quite large. Simply put, transactions are a “saying” leadership style, and a “sale” style of conversion.

There are positive and negative reinforcements in the transaction method, transformative leadership motivation, and inspiration that define transactional leadership.

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term.

The leader of the transaction is responsive; The converting leaders are active. Transactional appeal appeals to people’s interests, while the transformational style is the priority of the group of transactional transformational leadership.

History and Theories

20th-century German sociologist Mac Weber did extensive research on leadership styles and divided them into three categories: traditional, charismatic and reasonable-legal, or bureaucratic from the life of famous transactional leaders.

Weber in 1947 described rational-legal leadership as the style that would be known as the leadership of the transaction – for example, “the practice of knowledge based on knowledge”.

Transactional leadership theory is based on the idea that the manager gives employees something they want to get something they want. Workers are not self-motivated and need to be structured, instructed, and supervised properly, and timely.

After the Second World War, the leadership style of the transaction is widely used. This was a time when the government focused on reconstruction and needed a high level of structure to maintain national stability with several transactional leadership pros and cons.

Political scientist James McGregor Barnes Weber‘s theory was the most prominent author of the development. In his 1978 book “Leadership“, Barnes argued that both the transacting and converting leaders can certainly be moral and achieve high objectives. In the model of Barnes, the transaction leaders agree with honesty, justification, responsibility, and commitment.

Bernard M. in the 1980s and 90s. Researchers including Bass, Jane Howell, and Bruce Avolio have defined the level of leadership in the transaction:

The consistent reward, the expectation settings, and the reward workers reward for their completion

Passive management by exception, unless a problem arises, a manager does not interfere with the workflow between transactional leadership and transformational leadership.

Active management by exception, which is facing manager problems, progress monitoring, and corrective measures problems in the transactional leadership meaning.

Transactional leadership, also popular as management leadership, focuses on the role of leadership, organization, supervision, and team performance. The leaders of the use of this style are focused on the specific leaders of the implementation and use of adherent motivation prizes and punishments.

This theory of leadership was first described by sociologist Mac Weber and in the early 1980’s Bernard M. It was searched by Bash. Look closely at how the transaction style works as some of the possible benefits and downside of that style.

The basic assumptions about the leadership of the transaction

Order discipline is specific and clear when people perform their best.

The prize and punishment staff inspires by the transactional leadership model.

The main goals of adhering to the instructions of the leaders and followers, such as bill gates transactional leadership style.

Need to be carefully monitored to ensure that the care of subordinates is met.

This theory takes the behavioral aspect of its leadership on a system of rewards and punishments.

The leadership of the transaction is often used in business; When employees succeed, they are rewarded; When they fail, they are reprimanded or punished.

Athletic teams also depend on the leadership of the transaction in the transactional and transformational leadership examples.

Players are expected to abide by the rules and expectations of the team and are rewarded or awarded for their performance like contingent reward leadership.

Desperation and bonus may be frustrating and verbal fraud due to winning a game. Players are often very motivated to do good work, even if it suffers pain and injury, transactional leadership in healthcare.

Those who move forward against the converted leaders, the transactional leaders are only interested in maintaining the position. Convertor leaders try to sell their ideas and vision to followers of a transactional leader.

On the other hand, the leaders of the transaction will tell the group members what to do and when to do it between transactional and transformational leadership theory.

Transformational and transactional leadership reverses the pole when the underlying principle of management and motivation comes. Organizational leaders focus on organization, supervision, and team performance while converging leaders focus on changing the organization.

What is Transactional Leadership?

The transaction’s leadership style is more concerned about maintaining the normal flow of operations – this style is best described as “carrying the vessel”.

Transacting leaders use an array of disciplines and encourage an employee to encourage them to perform their best, using an array of enthusiasm. The term “transaction” refers to such leaders that in turn motivate subordinates for the reward for performance.

A transactional leader usually does not look forward to the strategic direction of a position of market leadership; Instead, it is related to ensuring that these directors flip through very often to differentiate transactional v transformational leadership.

Transformational and transactional leadership reverses the pole when the underlying principle of management and motivation comes. Organizational leaders focus on organization, supervision, and team performance while converging leaders focus on changing the organization.

A convergent leader goes outside the management of everyday activities and craftsmanship to carry out the next level of performance and success of his company, department, or team.

Focusing on team building, motivation, and collaboration with different levels of staff of an organization to change the changing leadership styles well.

These leaders set goals and motivations for pushing their subordinates to a higher level of performance, providing personal and professional growth opportunities for each employee as a part of the transactional leadership style definition.

The power of each method

Transaction leaders can quickly address small operation details. They manage all the details that come together to build a strong reputation in the market, when employees keep productive in the front row.

Transitional leadership styles can be helpful in a small business’s strategic development. Small businesses with helm transformed leaders can shoot for aspiring targets and they can quickly achieve success through philosophy and team-building skills.

Transactional models

Many current leadership theorists agree that both the transactional and transposed leadership principal can be combined for ideal results in both the management and workshop for transactional management style.

Transaction models can be successful in the linear and specific processes that require a crisis or project. This model is also beneficial for the Hewlett-Packard corporation, a company known for its extensive use of an exception of transactional leadership in education, and in other areas.

Examples of Transactional Leadership

Many high-level members of the military, CEOs of major international organizations, and NFL coaches are known to the leaders of the transaction.

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term.

Executive Leaders also work well between the police organizations and the first reactionary organizations. Here are four examples of transactional leaders, such as the Max Weber transactional leadership model.

1. Norman Schwarzkopf

Born in 1934, Gen. Norman Schwarzkopf graduated from West Point. He went to Vietnam as a South Vietnamese military adviser. During this war, he was wounded twice and won three Silver Star medals for contingent reward transactional leadership.

In 1978 he became Brigadier General; In 1988, he achieved a four-star ranking of a transactional approach to leadership. General Schwarzkopf was the Commander-in-Chief of US forces in Operation Desert Storm, responsible for thousands of soldiers in Iraq and Kuwait.

He used martial law and rules to coordinate operations on several continents, which burns transactional leadership.

2. Vince Lombardi

Born in 1913, Vince Lombardi is known as the coach for most Green Bay Packers. In 1959, he signed a five-year contract with Green Bay. Under the leadership of the party, there was never a losing session for transformational leadership as well as transactional leadership.

At the end of his career, he led 98-30-4 and led five championships. Super Bowl Trophy is named after him. He used to practice the practice again to run the packer over again through the same drama.

The opponents of the party knew that Lord’s plays will play, but the team was so well-trained that many parties created problems for their protection against them. A transactional leader is likely to perform like him.

3. Bill Gates

Bill Gates was born in Seattle in 1955. At the age of his first teenage, he met Paul Allen at Lakeside School, where they both developed a hobby computer hobby. Gates went to Harvard, Alan went to work as a programmer for Hannover in Boston, the symbol of transactional and transformational leadership styles.

They started Microsoft in 1975 and in 1978 the company earned $ 25 million when Gates was 23 years old. In 1985, Microsoft launched Windows. Bill Gates is now one of the richest people in the world from transactional to transformational leadership.

As a leader of the transaction, he visited new product teams and asked difficult questions until he was satisfied that the teams were on track and understood the goal.

4. Howard Schultz

Born in 1953, Howard Schultz grew up in the Brooklyn housing. He escaped from projects with the Football Scholarship of the University of North Michigan for his strengths of transactional leadership.

After college, he started selling coffee makers included in Starbucks coffee and spice companies, which sell coffee beans instead of order to create them. In 1982, he was appointed by the company. In 1984, according to the idea of the Italian espresso bar, Schultz opened the first Starbucks Kaif House.

Schlott wanted to grow Starbucks, but the owner wanted to stay small. In 1985, Shutts left and opened his own organization. With the help of investors, he bought Starbucks in 1987 and united two companies.

By 2006, Schlutz was ranked 394 on Forbes Magazine’s list of 400 richest Americans. As a transactional leader, he is responsible for the vision and implementation of the Starbucks model with transactional leadership strengths.

Transactional Leadership Quotation

Norman Schwarzkopf said: “When the command is established, take the charge.”, a transactional leader meaning.

Vince Lombardi said: “Success is the hard work, dedication for handwork, and the determination that we win or lose, we have done the best in our own hands.”

Bill Gates said: “The first rule of any technology in any business will increase the effectiveness of the automation applied in the effective operation. The second is the automation applied to the operation of autism, which will increase the vulnerability.”, bass transactional leadership.

Howard Schultz said: “Starbox is not an advertiser; People think we’re a great marketing company, but in reality, we spend a lot of money on marketing our people to train more than advertising.”

Here are some of the features of the transaction leaders:

  • Focused on short-term goals
  • Support structural policies and procedures

The following rules and improvements work properly, nurse managers as transformational and transactional leaders, or in other professions

  • Efficiency revel
  • Very left cute
  • The tendency to be trendy
  • Changed Opposition

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term. Organizational leadership works well in organizations where the structure is important. Leadership is not suitable for organizations where initiatives are encouraged:

Leadership Transactional Professionals:

  • Those who were sent for the purpose of following the command were sent
  • Providing a vague structure for large organizations, systems need repetitive and infinite renewable environments
  • Quickly achieved short-term goals
  • Prizes and fines are clearly defined for the workers
  • The opposite of the transaction’s leadership: Employees are rewarded only at practical levels such as money or money
  • Creativity is limited because the goals and intentions are already set
  • Private initiatives are not rewarded

There is a place for leadership in the world today. One of his best uses is in multinational corporations where not all workers use the same language. Once learned the structure and requirements, it is easy for employees to complete tasks successfully with the strengths of a transactional leader.

This works because the leadership of the transaction is not easy to learn and requires extensive training. It is easy to understand the transaction method and to apply it in most cases in an organization for a contingent reward leadership style.

Military, police organizations, and first respondents use this style of leadership so that all areas of the organization are consistent. It is also easier to apply to a crisis situation where everyone must know what they must do and how to work under pressure.

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term.

For many people, money and benefits are powerful senders in areas like transactional and transformational leadership in nursing. Many people need a job to pay the bills. They have other responsibilities and confusions, and soon they will know exactly how to work and how to work out the prize.

How transactional leadership works

In relation to the leadership of the transaction, the punishments and rewards of followers are consistent like bass 1985 transactional leadership.

The director shows the relationship between manager and subordinates as an exchange – you give me something for something back as for transactional leadership theory examples.

When subordinates perform better, they will get a reward. When they are done badly, they will be punished in some way.

The rules, procedures, and quality of transactional leaders

Transaction leaders follow regular rules, reward success, and reward followers for punishment for failure. However, they do not act as a catalyst for growth and change in an organization. Instead, they apply current rules and expectations and focus on maintaining it to apply.

These leaders tend to be good at setting expectations and value that maximizes the efficiency and productivity of an organization. They give constructive feedback regarding follow-up performance, which allows group members to improve their output for improved feedback and strengthening.

When is transactional leadership the most effective?

Followers are not encouraged to be creative or to solve new solutions. Studies have shown that transactional leaders seem to be most effective in situations where the problems are easily and clearly defined to explain transactional leadership.

Focus on specific tasks should be done where it can work well in crisis situations. Determine specific tasks of specific people, the leaders can ensure that things can be completed.

During the crisis, the transaction leaders can help maintain this situation and “keep the ship alive”.

Focus on the maintenance of team formation of the leaders of the transaction according to the transactional leadership theory definition.

They are given the responsibility of informing group members exactly what they are expected to do, to describe the performance of the performance work, to explain the consequences of failure, and to offer feedback on the design of employees.

Although in some cases the leadership of the transaction can be effective, it is considered inadequate in many cases and can prevent both leaders and followers from achieving their full potential.

How do you recognize a transactional leader, with transactional leadership contingent reward?

Here are some signs to say about types of transactional leadership.


Micromanaged and expected if you are working under the leader of the transaction. Such leaders believe that it is up to him to make all decisions, and employees must follow their instructions or instructions only, even in transactional leadership in schools.

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term for transactional leadership style examples.


Leadership is one of the most distinctive features of a transaction style of reality. One of their systemic behaviors to solve the problem, and they take into consideration all the realistic limitations and opportunities.

Resistant resistant

Because the transaction leaders do not want to convert things, they become extremely resistant to change. The leader wants to stay strict as everything and does not believe in improving the working conditions to make things better, other than the cons of transactional leadership.

External motivation

A transactional leader aims to emphasize the desired performance from the team by motivating them from outside, key characteristics of transactional leaders.

Employees are rewarded for behaving in the expected manner, and punishment for any deviation. The relation between employees and leaders is a transactional one.
Discourage independent thoughts

These leaders do not encourage workers to work creatively or think for themselves. Independent thoughts and risky work breakdown because it is not innovative and believes that they are good.

Performance Award

The leader will keep an eye on the performance of all the employees based on the specific goal and goal for them. When employees achieve a predetermined goal, they keep an eye out and reward them properly.

Similarly, they are aware of poor performance and in such cases, the prizes are reversed, as transactional leadership behaviors.

Importance on corporate structure

The transaction leader has great importance on the sequence, and corporate structure, and culture. Congratulations to the strict organizational dominance of leadership styles.

Focus on interest

A transacting leader’s motivational style worker is one of the personal interest appeals. Employees achieve a specific goal, they are rewarded for transactional leadership practices.

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term. There is not much importance in achieving the goals of the team or the goal of the team.

Intensive Thoughts

A transactional leader is happy to work in existing systems and limitations and will work from the borders to achieve the goals of the organization.

They tend to think inside the box to solve the problem. Although they may be able to handle routine issues, they often get stumped when it encounters problems requiring a creative solution.


This leadership style is quite passive because the focus condition is maintained. The leader is responding to the incident that can happen and does not take active steps to prevent problems. Establish the criteria for evaluating the most notable behavioral performance assessments and rewards associated with this leadership.

transactional and transformational leadership

Which leadership style is better?

Different management styles are suitable in different situations. When the line supervisor comes in front of the lowest-wage staff, for example, a transactional’s leadership style can be the effective elements of transactional leadership.

As we discussed, a transactional leader and the transactional leadership style compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term.

Gentle supervisors in the fast-food restaurant will be more effective, if they’re worried about running the various stations easily, instead of spending time using them, there is a better way to serve hamburgers.

On the other hand, if they are converging leaders, CEO or sales managers can be more effective. In order to implement executive managers’ detailed operations, leadership leaders need to have the mission, grand strategic mission design, and communication ability below.

Take away

As we discussed, a transactional leader and leadership practices compliance by followers in the form of rewards and punishments, thus keeps the team motivated for the short-term transactional leadership skills.

Transactional Leadership Characteristics

1. Extrinsic motivation
2. Practicality
3. Resistant to change
4. Discourage independent thinking
5. Rewards performance
6. Constrained thinking
7. Passive
8. Directive
9. Emphasis on corporate structure
10. Emphasis on self-interest

Focusing on the Leaders’ Leadership Consequences, consistent with the existing structure of an organization and achieving success according to the organization’s rewards and fine.

Transaction leaders have formal authority and responsibility for an organization. This type of leader manages personal performance and is responsible for maintaining routine keeping party’s performance easier.

Such leaders determine the criteria for their employees according to the predetermined requirements. Performance review is the most common way to judge employee performance.

Transactional, or managerial, leaders know their jobs and work well with the staff sent by the reward-punishments system. The status of an organization is maintained by the leadership of the transaction.

The primary goal of transactional leadership, team performance supervision, organized an evaluation known as managerial leadership.

The leaders of the transaction expect the followers to be loyal and confirm it by reward and punishment. In this process, the leader is not looking at the future or transformed in the future, but only things want to stay the same.

Ideal for conducting a project that requires transactional leadership to be done in a systematic and structured manner.

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