Transactional leadership

Transactional leadership is a leadership style based on an exchange relationship between the leader and their team members. Meeting established goals and expectations is linked to rewards, while failure to meet them may result in consequences or corrective measures.

This model focuses primarily on setting clear objectives, defining responsibilities, and monitoring performance. The leader establishes the rules and expected outcomes, while team members know what is expected of them and what they can receive in return for achieving specific results.

This concept is closely tied to performance management, recognition systems, and incentive programs, as these can be used as mechanisms to reinforce specific behaviors and outcomes within the organization.