Transactional Leaders

Characteristics of Transactional Leaders

Let's look at the characteristics of transactional leaders that will help us differentiate them from others. The main characteristics include

• Performance-oriented,

• Extrinsic motivation,

• Resistant to change,

• Practical in nature, and

• Short-term goals.

Performance-oriented - Transactional leaders are very conscious of the team's performance and outcome. They evaluate employees based on their performance and reward or punish them according to their performance.

Extrinsic motivation - Motivation using money, praise, and recognition is a common practice for transactional leaders. They hope to improve job outcomes through these measures.

Resistant to change - Transactional leaders rely on their traditional way of doing things and are hesitant to think of another method or implement a new action plan.

Practical in nature - They have a sensible and realistic approach toward their tasks. They consider all hindrances and challenges they might have to overcome to accomplish the task.

Authoritative - Transactional leaders have authoritarian power and make decisions for the team. They pass on instructions for their team to follow.

Short-term goals - They do not proactively seek to solve a problem but choose to solve them as they arise.

Transactional vs. Transformational Leaders

Transformational leaders are proactive leaders that motivate and inspire their followers. In this type of leadership, creativity is given more focus than productivity. Let's take a look at the other differences between transactional and transformational Leaders.

Table 1 - Difference between transactional and transformational leaders

It is important to remember that transactional and transformational leadership styles are not different but complementary. Knowledge of both styles is necessary to become a successful leader.

Pros and Cons of Transactional Leadership

By now, you may have understood that transactional leadership has its fair share of advantages and disadvantages. Let's take a look at them in more detail.

The pros of transactional leadership are as follows:

Motivates employees and maximizes productivity - The reward system is beneficial in continuously motivating employees. This will, in turn, help in improving the employees' productivity. Leaders should know how their employees like to be rewarded. They should also set parameters defining the goal to help them attain the reward. Also, the element of constant supervision may encourage them to do better.

Clear definition of tasks - Employees that are part of a transactional leadership team know their roles and tasks outlined for them. They know their expectations and where they fall in the organizational hierarchy. This also helps with communication within the team.

Easy to implement - Transactional leadership is a process that can be easily implemented. The leaders must be able to enforce rules. Their leadership style is not ruled by emotional intelligence. It is also a direct and simple process to implement.

Low cost - Transactional leaders focus on implementing cost-saving methods while working. They figure out ways to reduce costs.

The cons of transactional leadership are as follows:

No individuality - the team members do not experience any individuality while working under a transactional leader. There is little to no room for creativity. Disobeying the leader or failing to follow instructions can be unfavorable for the employee.

Does not inspire leadership - followers of the transactional leader do not acquire leadership qualities as they are trained in taking orders and implementing them. As a result, they fail to acquire any leadership skills. They lack the qualities to take over the leadership position if ever needed.

Leadership abilities are not questioned - if team members fail to accomplish a task by the deadline, they are held responsible for the failure. The leader is not questioned. It can be problematic if the failure to accomplish tasks results from managerial incompetence.

So, what do you think? Can you work in an environment that is led by a transactional leader?