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Transactional leadership (or transactional management) is a type of leadership style that focuses on the exchange of skills, knowledge, resources, or effort between leaders and their subordinates. This leadership style prioritizes individual interests and extrinsic motivation as means to obtain a desired outcome.
Transactional analysis is a psychoanalytic theory and method of therapy wherein social interactions (or "transactions") are analyzed to determine the ego state of the communicator (whether parent-like, childlike, or adult-like) as a basis for understanding behavior. [1]
A transactional leadership practice is defined by its "trans-actors" who "enact new and unfolding meanings in on-going trans-actions." [ 47 ] Actors operating "together-at-once" in a transaction is contrasted with the older model of leadership defined by the practices of actors operating in self-actional or inter-actional way.
The full range of leadership model (FRLM) is a general leadership theory focusing on the behavior of leaders towards the workforce in different work situations. The FRLM relates transactional and transformational leadership styles with laissez-faire leadership style.
The TMLQ is composed of 50 items and is designed for adults who work in a team. It represents an extension of the definition of transformational leadership from the individual to the collective. The TMLQ measures team transformational leadership, team transactional leadership, team passive/avoidant behaviors, and team outcomes of leadership.
Building on the tenets of a transactional philosophy, this chapter describes "the situation that arises when transactional viewpoints and modes of inquiry are applied in the field of psychology. The resulting discipline, transactional psychology, is expected to have implications for educational practice" (p. 113).
The theory is developed from early leadership research which focused primarily on finding a group of heritable attributes that differentiate leaders from nonleaders. Leader effectiveness refers to the amount of influence a leader has on individual or group performance, followers’ satisfaction, and overall effectiveness.
Burns shifted the focus of leadership studies from the traits and actions of great men to the interaction of leaders and their constituencies as collaborators working toward mutual benefit. [8] He was best known for his contributions to the transactional, transformational, aspirational, and visionary schools of leadership theory.