Presentation on Transactional Leadership

7/27/2019 Presentation on Transactional Leadership

1/13

Presenters:-

Harsha Kewlani

Amita Pandey

Praveen Srivastava

Ranpratap Parihar

Karishma Gupta

Ratnesh Kumar Mishra


2/13

Topics Covered

Meaning of Transactional Leadership

Dimensions

Assumptions

Implications

Distinction between Transformational & Transactional Leadership

Conclusion


3/13

The transactional style of leadership was first described by

Max Weber in 1947 and then by Bernard Bass in 1981.

This style is most often used by the managers. It focuses

on the basic management process of controlling,

organizing, and short-term planning.

It is based on the assumption that subordinates and

systems work better under a clear chain of command.

It is most often explained as a cost-benefit exchange

between leaders and their followers.


4/13

Transactional leadership involves-

motivating and

directing followers.

The power of transactional leaders comes from their formalauthority and responsibility in the organization.

The main goal of the follower is to obey the instructions of theleader.

The style can also be mentioned as a telling style.

The leader believes in motivating through a system of rewardsand punishment.


5/13

If a subordinate does what is desired, a reward will follow, andif he does not go as per the wishes of the leader, a punishmentwill follow.

Here, the exchange between leader and follower takes place toachieve routine performance goals.

The transaction or exchange involves something of value

between what the leader possesses or controls and what the

follower wants in return for his/her services.

Transactional leadership involves leaders clarifying goals and

objectives, communicating to organize tasks and activities with

the co-operation of their employees to ensure that wider

organizational goals are met.


6/13

This includes 4 types ofdimensions-

Dimension

ContingentRewards

(S.M.A.R.Tgoals)

ActiveManagement

byexception

Laissez Faire

PassiveManagement


7/13

Assumptions of Transactional Theory

obey theorders

Lack ofSelf

Motivation

MotivationalFactor

Rewards &Punishment


8/13

Implications of Transactional Theory

The transactional leaders overemphasize detailed and short-term goals, and standard rules and procedures.

They do not make an effort to enhance followers creativityand generation of new ideas.

This kind of a leadership style may work well where theorganizational problems are simple and clearly defined.

Such leaders tend to not reward or ignore ideas that do not

fit with existing plans and goals.


9/13

The transactional leaders are-

Found to be quite effective in guiding efficiency decisions

Aimed at cutting costs and improving productivity.

The transactional leaders tend to be-

Highly directive

Action oriented

Relationship are not based on emotional bonds.

It assumes that subordinates can be motivated by simplerewards.

The only transaction between the leader and the followersis the money which the followers receive for theircompliance and effort.


10/13

Transactional leadership may operate successfully in a

work environment where leaders and workerspersonalities are compatible, but it could result in

conflict between task-oriented and person-oriented

personalities.

Transactional leadership works well in a supply-and-

demand situation of much employment, coupled with

the effects of deeper needs, but it may be insufficient

when the demand for a skill outstrips the supply.

Transactional leadership behavior is used by one

degree or another by most leaders.


11/13

Difference between Transactional and

Transformational Leaders

Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the organizational

culture

Work to change the organizational

culture by implementing new ideas

Transactional leaders make

employees achieve organizational

objectives through rewards and

punishment

Transformational leaders motivate

and empower employees to achieve

companys objectives by appealing to

higher ideals and moral values

Motivates followers by appealing to

their own self-interest

Motivates followers by encouraging

them to transcend their own interests

for those of the group or unit


12/13

Conclusion

The transactional style of leadership is viewed as insufficient, butnot bad, in developing the maximum leadership potential.

It forms as the basis for more mature interactions but care should

be taken by leaders not to practice it exclusively, otherwise it willlead to the creation of an environment spoiled by position, power,

perks, and politics.

However, it can be quite limiting if it is the only leadership style

used. As the old saying goes, if the only tool in your workboxis a hammeryou will perceive every problem as a nail.


13/13

Documents

Presentation on Transactional Leadership