1. Supervise and give direction
- Supervision is the most important element in the functioning of management.
- Always provide context for the task to be completed.
- Transactional leadership always focuses on the performance of each employee.
- They supervise and instruct their employees on the progress of routine work.
- In this, they also take feedback regarding the accomplished task.
2. Practicality
- Transactional leaders adhere more to realism over idealism.
- They clearly understand the difference between skill and will of their employees.
- They are practical enough to link the result obtained to the goal of the organization.
- Transactional leaders work by considering all the realistic constraints.
3. Require a structured environment
- Transactional leadership is best suited in a well organized structured working environment.
- Transactional leaders are loyal to the company structure, procedures, and policies instead of their employees.
4. Passive leadership type
- They focus mainly on maintaining status quo (existing state of affairs) and the normal flow of operations.
- They interfere only when standards, expectation and target are not met.
- Transactional leadership does not take proactive steps to solve problems.
- They do not pay any attention to problems happening outside the employee performance.
5. Tends to inflexibility
- Transactional leaders impose their own orders and instructions on their employees.
- There is no creativity and innovation in this leadership style.
- In this style of leadership empowerment of employees are not taken into consideration.
- Fear of punishment can create stress in their employees.
- This may create a lack of trust among employees and the leader.
6. Reward performance
- The term ‘transactional’ refers to the exchange of rewards for performance.
- Transactional leaders give reward in terms of incentives for their performance.
- They also aware their employees regarding the punishment for poor performance.
- This keep employees motivated and also keep aware of their responsibilities.
7. Extrinsic motivator
- Extrinsic motivation refers to behavior that is driven by external rewards such as money, fame, grades, and praise.
- It is totally opposed to intrinsic motivation, where dedication develops from inside.
- Transactional leaders use disciplinary orders, instructions and give incentives to motivate their employees.
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