Transactional LeadershipTransactional Leadership characteristics: Contingent reward- Contracts Leaders who guide or exchange of rewards for effort, motivate their promises rewards for good performance, recognizes followers in the accomplishments. Management by direction of exception(active)- watches and searches for deviations from established goals by rules and standards, takes clarifying role and task corrective action. Management by requirements. exception(passive)- Intervenes only if standards are not met. Laissez Faire- Abdicates responsibilities, avoids making decisions.