Download - Presentation on Transactional Leadership
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Presenters:-
Harsha Kewlani
Amita Pandey
Praveen Srivastava
Ranpratap Parihar
Karishma Gupta
Ratnesh Kumar Mishra
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Topics Covered
Meaning of Transactional Leadership
Dimensions
Assumptions
Implications
Distinction between Transformational & Transactional Leadership
Conclusion
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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.
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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.
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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.
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This includes 4 types ofdimensions-
Dimension
ContingentRewards
(S.M.A.R.Tgoals)
ActiveManagement
byexception
Laissez Faire
PassiveManagement
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Assumptions of Transactional Theory
obey theorders
Lack ofSelf
Motivation
MotivationalFactor
Rewards &Punishment
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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.
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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.
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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.
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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
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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.
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