transactional leadership characteristics transactional leadership traits traits of transactional leadership key characteristics of transactional leaders traits of a transactional leader features of transactional leadership

14 Transactional Leadership Characteristics – Examples | Style

(Last Updated On: April 15, 2021)

Who is a transactional leader? An example of a transactional leader with great leadership qualities has praiseworthy characteristics and style in its definition. A transactional leader is someone who is valuable in order and structure. With Transactional Leadership characteristics, 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. Transactional leaders are not a good fit for places where creativity and innovative ideas are valuable.

Transactional leadership characteristics

Transactional leadership is often compared to variable leadership. Transactional leadership characteristics depend 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.

Transactional leadership emphasizes the result, remains in the existing structure of an organization, and achieves success according to the organization’s rewards and penalties.

Transactional leadership characteristics remain in charge of the formal authority and organization. And is responsible for managing individual performance and maintaining routine facilitating team performance. Examples of transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

Transactional, or manager, leaders determine the standards for staff, and review performance is the most common way to judge employee performance.

What do transactional leaders do?

With Transactional leadership characteristics, leaders are expected to do the following:

  • Set goals and give specific guidance on what they claim from employees and how they will be rewarded for their efforts.
  • Provide productive feedback on performance.
  • Focus on increasing the efficiency of the established routines and procedures and show concern for following existing rules rather than change.
  • Establish and maintain practices that will help organizations to be effective and productive.
  • Detect corrective actions to improve deviation response and performance from expected results.


Here are some of the features of the transaction leaders:

  • Focused on short-term goals
  • Support structural policies and procedures
  • Useless inefficiency
  • Very left cute
  • The tendency to be trendy.
  • Changed Opposition.
  • Focused on short-term goals.
  • Support structural policies and procedures.
  • Efficiency revel

Organizational leadership works well in organizations where the structure is important. Transactional 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

Transactional Leaders Definition

Transactional leadership characteristics are more concerned with maintaining the normal flow of the operation. Transaction leaders use disciplined energy and stimulating arrays to encourage employees to perform their best.

The term “transaction” refers to such leaders that in turn motivate subordinates for a reward for performance.

Do not look at managing a company strategically for a market leader position; Instead, these managers certainly are all concerned that everything is easily flowing.

The style of transactional leadership characteristics based on the use of rewards and punishments for encouraging clear goals and purposes and consent for followers.

They can define goals and use a reward or punishment to manage and manage subordinates. The system encourages them to achieve their best in terms of regulations and regulations in a broadly structured environment.

Over the years there have been many thinkers on this theory and structure. In fact, the greatest managerial minds deny the leadership theory of transactions on other styles, such as charisma or pure, authoritarian leadership. However, successful business tycoons, such as Bill Gates, swear by the leadership of the transaction, and this result proves that the results can work properly.

They achieve features of transactional leadership from the combination of many concepts, such as:

  • Theory X by McGregor
  • Maslow’s hierarchy is needed
  • James McGregor Barnes and Bernard M. Definition by bus
  • Transaction of maximum Weber. When considering the leadership style of transactions, they considered the leadership of these theories, ideas, and definitions.

Transactional leadership characteristics guide or motivate their followers towards established goals by explaining the role and task requirements.

Transactional leadership is sometimes referred to as managerial leadership; Focuses on the interaction between leaders and followers.

The main idea of the leadership of the transaction is that the leader who controls and controls his employees or followers encourages followers of his followers to do whatever they want.

Transactional leaders reward their motivation and reward their punishment. If it has limitations, it can be effective in some situations.

A transaction style can work well in cases where the problem is clean-cut and easy.

One of the main problems of this genre is that it does not encourage group members to creatively contribute or contribute creatively to solve the problem, so in a critical situation, the leadership of transactions is not the best choice where input is required from group members.

The leadership transaction style was first described in Max Weber in 1947 and then in 1981 by Bernard Bus.

Components of Transactional leadership characteristics

They base the leadership trading style on a ‘telling’ style. It does not depend on the charisma or transformational power of a leader. It focuses on formulating results and performance. The leader transacts with his staff. If the subordinate performs a task satisfyingly and meets the goal, the reward is exchanged with them.

1. Supervision

All employees who follow the leader-specific employee will follow. It does not mean that supervision is managed by advanced monitoring as a part of traits of a transactional leader.

2. Performance

This style is the heart of this style. If an employee provides satisfactory performance according to certain guidelines, then a reward will be followed or otherwise punished.

3. Organizational structure

There is an emphasis on rules, regulations, guidelines, methods, and standards emphasize. The structure was established by a leader and is followed by the subordinates.

To ensure that the transaction of the leadership takes effect, a leader monitors the proper application of these three main blocks. The style can not work effectively even if an element is missing.


To provide the organization’s structured expertise and efficiency skills, they have developed the style of this trend based on four assumptions.

1. Leadership Framework

The most obvious idea of this theory is that subordinate performance is even better when the leader is transparent and straight. This style believes that employees need reward guidance and clear motivation to effectively carry out their work. Subjective behaviors such as guidelines are unclear when they can not work.

2. The prize is motivation only

The model is enlightened about the presence of a prize and punishment model. In order to encourage employees to do their best work while providing guarantees of punitive punishments, the leader must use the rewards, such as financial bonuses. The second concept is believed to be based on the belief that these rewards or punishments can only inspire the subordinate to do their best work.

3. Power transfer

The third idea is that when a subordinate person is signed in the contract of appointment, he hands the power to a leader. Believe that employees give authority to a leader or manager in return for financial and other benefits.

4. Monitoring performance

The last idea is that performance can be of lower quality and must be continually monitored or scrutinized by a leader. The employee only works for awards and is not actually sent by the job. This means that the performance can be inappropriate and therefore, to ensure the quality of a teacher, the process should be kept in mind until the process is complete.


Throughout history, there have been many leaders who have achieved results using the transaction style. Understanding how politics and business world leaders have practiced, it is easy to make the heart of this concept easier.

Transactional leadership qualities

There are many innate properties that will be the leader of a successful transaction. These are:

1. Reality

With the daily running of the business, he is concerned as the leader needs a more practical approach. You do not need a visionary’s practical approach to those who develop long-term goals.

2. Direct refuge

It is important to the situation and the direct method of life. A transactional leader will be able to provide direct solutions and direct directions to all employees directly. Without direct intent, leadership styles will not succeed.

3. Sensitivity

Being able to react in situations is the key to leadership trading style. For example, a leader has to be quick to punish until punishment or goal is met.

Transactional leadership is a form of style management that focuses on the basic management process of control or supervision, organizing, and short-term planning or performance assessment.

This was first described by Max Weber in 1947 and then in 1981 by Bernard Diam. Weber believed that leadership was situational by nature, and leaders worked in two basic ideologies: Transactional and Transformed.

According to him, the leaders of the transaction work in the existing system to achieve results. They are not individuals who try to communicate with things from a different perspective, which converging leaders do something.

The leaders of the transaction believe in the motivation of subordinates through a system of reward and punishment.

This means that if an employee wants to do so, a reward will be followed. On the other hand, if the leader does not go as a will, punishment will be punished. Joseph McCarthy and Charles de Gaulle are just a few examples of trading leaders.

transactional leadership traits

Transactional Leadership theories

20th-century German sociologist Max Weber did extensive research on leadership styles and divided them into three categories: traditional, charismatic and reasonable-legal, or bureaucratic with key characteristics of 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”.

Keeping it in words in leadership is a very complex word to properly define. In the past, different types of leadership have been seen. Some exceptional leaders have expressed themselves and are creating history in their own areas. Each of them had a different style of leadership, stark different levels of intimacy, and different personalities and beliefs with their team.

It is generally seen in leadership style which is mostly used by managers. Proposes the name, gives it a purely professional, and takes a kind of relationship. Leaders are concerned about the basic functioning of a team, organized business, and positive business, and short-term planning.

The task in the hands of dealer leadership involves the appeal of workers targeting their personal interests. A leader who has the authority from his position Due to the position of the highest rank and leader of the leadership, the party leadership’s direction is expected to subordinate!

In this case, the employee uses the award and penalty adjustment in order to get the job. If an employee is expected to perform or perform, he is rewarded and may be punished as a result of a downfall.

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.

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 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:

How do you recognize a transactional leader?

The following are the main features of this type of leader.

Motivation is external or external

As mentioned, the transaction leaders manage a prize and punishment system and inspire team members, and often, motivation external. This means that subordinates are rewarded with ‘sufficient’ (for example cash, gift certificates, etc.) for deliberate behavior and punish for any deviation.

Motivation also keeps the employee interested in self-interest. For example, if employees achieve a specific goal, they are typically rewarded – little emphasis is given on teamwork or achievement of the team.


Following this management style is very practical or realistic. They tend to deal with problems, problem-solving, or pragmatically considering all realistic limitations and opportunities.

Uncomfortable with changes

“If it does not break, do not fix it!” Transacting leaders probably have this for their policies. These are people who can work without having to change the part of the existing part or environment, or need to remove everything. They do not want to convert things, everything just wants to stay.


Leaders are usually focused on maintaining status, thereby stability. They are not active types; They react to things that often happen.


Transactional leaders want to make sure everything goes as planned. They believe that the decision was over them and that all of them must be followed. So, hope to be micro-operated while working under this management style.

Chief priest

This leadership style gives much importance to corporate structure and culture. It often congratulates harsh organizational dominance.

For example, when a problem or problem is reported, this report will be sent to the immediate leader of the employee before reaching the top management. Domination bypass can be taken as integral.

Transactional Leadership and Benefits

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 the party’s performance easier.

Such leaders determine the criteria for their employees according to the pre-determined requirements. The 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.

Organizational leadership works well in organizations where structures are essential. Examples of a transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

Traits of transactional leadership are not suitable for organizations where initiatives are encouraged:

Benefits of Transactional Leadership

Examples of a transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition. The reward, which is inspired by the interests of following the guidelines.

  • Provides a vague structure for large organizations, systems require repetitive and infinite renewable environments.
  • Quickly achieved short-term goals.
  • The prize and the fine are defined for the workers.

The difficulty 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.

Encourages productivity

Since the leadership is rewarded and arranged by enthusiasm where employees get paid to fulfill the given tasks or to fulfill the objectives, the employees are encouraged to perform well or to produce better. Many companies and organizations use this technique to increase productivity.

Clean Structure

A fair organizational structure facilitates the company and its employees in many ways.

First, it ensures that the personal roles are defined, enables the employee to know what their expectations are.

Second, it facilitates achieving organizational objectives through the coordination of all activities.

Third, it reduces the conflicts among employees because each person knows the responsibility for his work.

It provides overlapping and duplication of work, clear and easy communication at all stages, ensures fair and equitable salary schedule, and develops high morale due to clear-cut values to acknowledge employee recognition and organizational contributions.

Goal makes achievable

The leadership style, goals, and goals of the transaction are often short-term, which makes it easy to meet and less intimidating. And because the goal is easily achievable, the workers are sent to work. Examples of a transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

Allow employees to control the prize

As we mentioned earlier, the motivations under this leadership style are such that outgoing employees are sent to produce for the promised reward. In addition to this, in cases where leaders or directors control the staff or say they want to receive awards.

Example of transactional leadership

Leadership requires an organization with a way to set the transaction style. There will be rules, regulations, and a clean framework. A good area where leadership styles can be applied to well-established companies.

It is extremely helpful when the company corrects operations. For example, there is a production plant repetitive process. So, a leader can set goals and punish those who can not achieve set goals and may reward them for additional productivity.

Transaction styles are widely used in many business sales teams. There is no direct supervision needed in the marketing sector. Objectives aim to achieve employees that are measured by goal targets. A director can use the merits of transactions by giving employees a bonus that crosses their goals.

The transaction method, however, limits one limitation to all limits. It is generally suitable for low-level management and minimum order for hierarchy chains. You need more dynamic management styles to deal with Senior Management. It can only be characterized by a true transaction leader.

The leadership of the transaction may be successful that requires a crisis or project linear and specific processes in the project

This model is also beneficial for the Hewlett-Packard corporation, a company known for its extensive use of an exception.

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

The executive leadership also works well with the police agencies and the first reactionary organizations.

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 of computer hobby.

Gates went to Harvard, Alan went to work as a programmer for Hannover in Boston. 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. 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.

Bill Gates is now one of the most influential as well as richest personalities in the whole world.

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.

Howard Schultz

born in 1953, Howard Schultz grew up in the Brooklyn housing project. He escaped from projects with the Football Scholarship of the University of North Michigan.

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.

Charles de Gaulle

Gaul was a French general who played an important role in the establishment of the French Republic. He was the first president of a decade since 1959.

Charles de Gaulle used the ‘story’ and ‘direct’ style of leadership, which was familiar with the transaction process. He implemented the use of the reward and punishment framework in order to send the appropriate Creator to their proper creation.

Gaulle quote claimed that “the debate has worked in many men. Action, one alone” explained the framework of the transaction. The role of a leader in Galle’s view was decisive – to tell exactly what people should say.

Joseph McCarthy

McCarthy was a US Senator and had other political personalities to show the qualities of trading in everyday leadership. He took a firm stand against the communists in the 1950s when he proposed that the top-level US government was infiltrated with Soviet and communist espionage.

He uses rewards methods to encourage his followers to come forward with information about the spy. He employed the framework for dealing with the expectations effectively in his regime. However, he soon received a good deal of his extreme actions following a violation by the US Senate.

Amstrad Agency

The business world has many examples of leadership transaction styles. Sir Alan Sugar is a British businessman who, through his successful leadership, took the Amstradr organization to great heights. His real-life TV show ‘The Apprentice’ was clear in his dealings with the ongoing transaction.

The show clearly shows the nature and style of leadership of this style, which can proceed with Sir Allan’s orders. Sir Allan also realized the importance of following rules and rules. She will often put her head down for business improvement.

Time Parker AA Company

Tim Parker completely uses the changes in the power of transactional power in the British motorcycle company AA. In 2004, Parker targeted the problem facing the company and identified the reasons behind it. He recognized incompetence as the main problem, loss of members, low productivity, and fatigue.

He set a path to a reconstruction of the company from the interior. All those people who are unable to reward rewardable people, punish them. Large changes and different jobs were dismissed. However, Parker understands the needs and firmly changes the institution with an iron hand.

In the first few months, the company has almost doubled that employees understand their flaws.

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. In 1978 he became Brigadier General; In 1988, he achieved a four-star ranking.

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.

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. 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.

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 relation to the leadership of the transaction, the person’s performance is stressed and he determines how much he conducts in a structured environment.

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.

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.

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

Active management by exception, which is facing manager problems, progress monitoring, and corrective measures problems

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. Examples of a transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

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.

Many high-level members of the military, CEOs of major international organizations, and NFL coaches are known to the leaders of the transaction. Executive Leaders also work well between the police organizations and the first reactionary organizations. Here are four examples of transactional leaders.

There are some ideas of such leadership that are very clearly standing.

Transactional leadership overemphasizes routine work and the method of working. Outside the box, thinking and creativity are encouraged outside of the staff. Skills are more emphasized than new product development tests.

There are no personal ties made up of team members or even team members and boss (leader). It is an important feature of transformational leadership which is considered to be the best leadership. Relationships and intimacy with the leadership will always inspire employees to go the extra mile to improve their performance.

The leadership of the transaction shows reaction to the leader of the proactive greater which is harmful for the team and organization. You need to be prepared for what’s coming.

The leader of a transaction follows the organization’s culture and works in the framework. This is not always good at all. Many times, a dynamic leader can do things that can be done and set a new vision and culture for the company.

Transactional Leadership Quotation

Norman Schwarzkopf said, “When the command is established, take charge.”

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.”

Examples of a transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

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.”

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.”

What is the difficulty of transactional leadership?

1. Motivation on the base level

When your goal is to maintain the best employee and ensure loyalty, the leadership of the transaction may fail to provide you the desired results because of being above the base level only.

It is very simple and fails to account for employees’ personal differences. It is based on the promise that people will only get the promised reward and perform deliberate actions to avoid punishment. What if the inspiration is stopped?

What if the promised prize is not so great or appealing? Rewards and punishments are only effective at work or projects where employees are able to perform their jobs.

It does not motivate people’s thinking and development in the higher plane; It is not strong enough to go out of their way and motivate them to exceed expectations.

Examples of transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition.

2. Can be tough

The only role of Latterurs is to believe what they have said, using their official authority to give instructions on what the transactional leaders should do. Leaders are often reluctant to consider other people’s ideas, which limit their limitation to correct and corrective actions when something goes wrong.

3. Blame can be a problem

In the leadership style of the transaction, supervisors or directors believe that once they have already appointed the responsibility, that work is now the sole responsibility of the employees. So, when there is a problem, accountability depends on the employee who is appointed to do the job.

transactional leadership

Take away

There are many people who do not always appreciate such leadership because the name suggests as such is very transactional. Perspectives leaders and world leaders are generally converting leaders instead of transactional leaders.

In the case of transformed leadership, the leader is the one who ensures the personal and professional growth of his entire team and it is a visitor.

Examples of transactional leaders like Bill Gate’s transactional leadership qualities has praiseworthy characteristics, popularity & style in its definition. We can ensure that the leadership of the transaction sets a series of rewards and punishments to inspire the members of the organization.

If these people adequately meet the leader’s goals and expectations, then they will be rewarded for their hard work and transactional leadership traits.

Transactional leadership characteristics
  1. Tends to inflexibility
  2. Discourage independent thinking
  3. Passive
  4. Emphasis on self-interest
  5. Practicality
  6. Directive
  7. Passive leadership type
  8. Emphasis on corporate structure
  9. Resistant to change
  10. Constrained thinking
  11. Require a structured environment
  12. Supervise and give direction
  13. Rewards performance
  14. Extrinsic motivation

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On the other hand, if they fail or violate these goals and expectations, they may be punished.

The leadership style of the transaction has many benefits during the month, which makes the company profitable for several months. It is a good leadership method to deal with daily tasks and manage everyday corporate issues.

It makes space management, goals, and rewards easy for many employees to manage. However, the leadership of the transaction depends on the manager for its success – it can not accept the manager who abandons the liability and prevents decision-making.

The transactional leadership style involves a system of reward and punishment based on the performance of an employee. This is an effective leadership method that gives full attention to the relationship between a leader and his subordinates.

This style of leadership is considered to be the border officer and can be suppressed if it is not employed in the right way.

It is said that the leadership of the transaction has been operating several times over the years. The opposite of this works as the power of this style and makes it very spontaneous and professional.

Those professionals who get down to business quickly and do business but do not mean anything. They take initiative to develop their employees themselves and perform better. If the staff is bad, then these leaders will not hesitate to reject the employees.

Further Reading: Transactional Leader and Leadership – Characteristics, Attributes

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