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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.
In transactional leadership, leaders promote compliance by followers through both rewards and punishments. Unlike transformational leaders, [4] those using the transactional approach are not looking to change the future, they aim to keep things the same. Transactional leaders pay attention to followers' work in order to find faults and deviations.
This leadership style has been associated with lower productivity than both autocratic and democratic styles of leadership and with lower group member satisfaction than democratic leadership. [9] Some researchers have suggested that laissez-faire leadership can actually be considered non-leadership or leadership avoidance. [18]
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. In the former ...
"The schools of transactional philosophy and psychology represent a relatively new approach to the ancient and perennial problems of perceiving and knowing," writes Phillips in the introduction. [6] He adds that the current thinking at the time of his writing was one that denied the uniqueness and human dignity of all people.
The MLQ Self is composed of 36 items and was designed to assess how the leader perceives their own leadership behaviors. Psychometrics are not available for the MLQ Self as a stand-alone assessment of leadership styles. The MLQ Self measures transformational leadership, transactional leadership, and passive/avoidant behaviors.
A leadership style is a leader's way of providing direction, implementing plans, and motivating people. It is the result of the philosophy, personality, and experience of the leader. Rhetoric specialists have also developed models for understanding leadership. [111] Different situations call for different leadership styles.
The Three Levels of Leadership model attempts to combine the strengths of older leadership theories (i.e. traits, behavioral/styles, situational, functional) while addressing their limitations and, at the same time, offering a foundation for leaders wanting to apply the philosophies of servant leadership and "authentic leadership".