The Transactional Leadership Style: Is It Right For You?

I came across an article discussing transactional leadership. Here are a few snippets that you might find interesting.

Transactional leadership is a style of leadership rooted in the principle of exchange. If an employee performs well, they receive rewards. And if an employee underperforms, they get either punishment or corrective feedback. Imagine a leader who sets clear expectations, a team that knows exactly what they are to achieve, and rewards or consequences delivered based on the level of performance.

In leadership styles, transactional leaders may differ from the trailblazers with a sweeping vision of the future. They are, however, efficient managers who ensure that day-to-day operations run smoothly and that each team member plays their part well. They focus on short-term objectives, rewarding team members for meeting targets and providing corrective feedback when performance falls short.

Characteristics of Transactional Leaders

There are many ways to be a good leader, and much of it comes down to finding your style. The following are a few hallmark traits that transactional leaders tend towards. If you are a leader, notice which characteristics you resonate with and which are not your style.

• Focus on task completion. Transactional leaders set clear expectations for their team members. They want the job done and not excuses. This usually means their teams are productive and efficient and achieve tremendous project success1.
• Use of rewards and punishments. Employees who hit a goal may get a bonus, whereas falling short could mean losing a sales client. Transactional leaders wave the carrot and whap they stick.
• Structure overflow. Transactional leaders gravitate toward established rules and procedures. They like well-defined roles, tasks, and hierarchical relationships. No squish.
• Short-term orientation. These leaders usually focus more on immediate tasks rather than long-term strategic objectives. Their focus is to get the job done. The downfall of this approach is, of course, a need for more innovation.
• Limited employee autonomy. Transactional leaders often limit the degree of autonomy granted to employees. Decision-making typically resides with the leader, with team members expected to follow instructions rather than initiate action. Everyone’s got a role, and they should stick to that role.?

Want to know more? Head on over to the full article here for more ideas and perspectives. Afterwards, why not drop me an email to share your thoughts at robert@businessvaluepartners.com.au; or call me on 0467 749 378.

Thanks,

Robert