The document discusses transactional leadership, which refers to an exchange between leaders and followers where the leader provides rewards or punishments in return for the follower's services or compliance. It provides characteristics of transactional leadership, its four dimensions including contingent rewards and management by exception, and how it can positively or negatively affect employee performance depending on how employees assess the leadership style. Videos and case studies were reviewed to better understand transactional leadership and its effectiveness.

1. BUSINESS
COMMUNICATION

2. The objective of this presentation is to research on the
various dimensions of transactional leadership and find
• how it works and
•why it works
•Whether it is right and
• how effective it can be in today’s world.
For this we went through different researches and case
studies. We came to know the level of effectiveness it has on
employees. For much clear understanding of the topic we
referred to a movie(pursuit of happiness,2006). The movie
clip is attached in presentation. There is another short
animated video attached which shows the basic concept of
transactional leadership and it effects on employees.
ABSTRACT

3. INTRODUCTION
Transactional leadership refers to a "transaction or exchange of
something of value the leader possesses or controls that the
follower wants in return for his/her services. The relations of
most leaders and followers are transactional: leaders approach
followers with an eye to exchanging one thing for another: jobs
for votes, or subsidies for campaign contributions" (Burns,
1978).

4. VIDEO AND CLIPS
https://www.youtube.com/watch?v=rWj6PdjXHA
I
https://www.youtube.com/watch?v=jVde5oP
m8aM

5. Assumptions of transactional theory
•Employees are motivated by reward and
punishment.
•The subordinates have to obey the orders of
the superior.
•The subordinates are not self-motivated. They
have to be closely monitored and controlled to
get the work done from them.
Managementstudyguide.com

7. Communicationtheory.org

8. 10 TRANSACTIONAL LEADERSHIP
CHARACTERSTICS
1. Extrinsic motivation
2. Practicality
3. Resistant to change
4. Discourage independent thinking
5. Rewards performance
6. Constrained thinking
7. Passive
8. Directive
9. Emphasis on corporate structure
10.Emphasis on self interest

9. Four Dimensions of Transactional
Leadership
1.Contingent rewards: Providing various kinds of
rewards in exchange for mutually
agreed upon goal accomplishment.
2.Active management by exception: Watching for
deviations from rules and standards and taking
corrective action.
3.Passive management by exception: Intervening
only if standards are not met.
4.Laissez-faire: Abdicating responsibilities and
avoiding decision

10. Transactional leadership affects on
employees
Transactional leadership styles can affect positively or
negatively on performance. It depends on employee
assessment. Positive effect can occur when employees
assess transactional leadership positively and a
negative effect can occur if employee considers that
transactional leadership styles can not be trusted
because they do not keep their promises, dishonest or
not transparent. Study effect of transactional
leadership on performance is conducted by Haryadi
(2003), Andarika (2004), and Ahn et.al (2005) which
explains that transactional leadership style has positive
and significant effect on employee performance.
ISSN (Online): 2319 – 8028
By Sundi K

11. Conclusion