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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.
Examples of authoritarian leadership include a police officer directing traffic, a teacher ordering a student to do their assignment, and a supervisor instructing a subordinate to clean a workstation. All of these positions require a distinct set of characteristics that give the leader the position to get things in order or to get a point across.
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.
It is a multi-rater form, meaning that it analyzes the leader's self-assessment alongside how superiors, peers, subordinates, and others perceive their leadership behaviors. The MLQ 360 measures transformational leadership, transactional leadership, passive/avoidant behaviors, and outcomes of leadership.
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.
There is a strong agreement across the literature that the selection process plays a key role in hiring the people who will be most effective cross-cultural leaders. The articles detail specific personality traits and individual differences that promote quality cross-cultural leadership for multicultural settings.
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.
With an increasing number of empirical studies directly supporting trait leadership, [10] [24] traits have reemerged in the lexicon of the scientific research into leadership. In recent years, the research about leader traits has made some progress in identifying a list of personality traits that are highly predictive of leader effectiveness.