Transactional leadership theory

[Expensivejoy01]

A transactional leadership theory style helps keep teams moving quickly. Rewards and consequences are clearly communicated. The idea is that there’s an exchange — a role to be played — by both parties. The leader is responsible for keeping the rewards flowing and punishments consistent. The other party (generally an employee) simply needs to “keep their end of the bargain.”

This “cut-and-dried” type of leadership gets results — but often at the expense of employee engagement. Participants in these settings are less likely to take an active role in the decision-making process. They tend to eschew responsibility for outcomes beyond their immediate roles.

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[Suba]

Transactional leadership theory is a leadership model/style where the leader is more likely to give direction to his employees, every performance will receive incentives and punishments, and too often provides direction and supervision to all his employees. What I don't like the most about transactional leadership theory is that it always creates rigidity in the work environment.