Transactional leadership style involves setting goals and using rewards or punishments to motivate employees based on their performance. Leaders define guidelines, structure, and monitor performance closely. This style assumes subordinates will perform best when clear direction is given and their work is constantly scrutinized, with rewards motivating performance and power being transferred to the leader. Examples include Charles de Gaulle, Joseph McCarthy, Alan Sugar, and Tim Parker.

1. LEADERSHIP STYLES
Transactional Leadership Style

2. Transactional Leadership Style
involves a system of rewards
and punishment based on
the performance of an
employee.

3. Transactional Leadership Style
defined as the setting of
goals and using rewards or
punishment to motivate and
manage the subordinates.

4. Transactional Leadership Style
encourages employees to
achieve their best through
rules and regulations in a
heavily structured
environment.

5. CORE ELEMENTS:
1. Supervision
- the leader sets out specific
guidelines
2. Performance
- the heart of this style of
leadership

6. 3. Organizational Structure
The framework is set up by a
leader and followed by the
subordinates.

7. FOUR
ASSUMPTIONS:
1. Leadership Framework
- subordinates performance is better
when the leader is clear headed and
direct

8. 2. Rewards are the only motivation
- rewards or punishment can
motivate a subordinate to perform
his best
3. Power Transfer
- a subordinate transfers the power
into the hands of a leader or
manager

9. 4. Monitoring Performance
- performance can be of inferior
quality and must be constantly
monitored or scrutinized by a
leader.

10. EXAMPLES:
Charles De Gaulle
- was decisive-- telling people
exactly what was needed of
them.
- was a French General, first President for a
decade from 1959 who played a key role in
setting up the French Republic.

11. Joseph McCarthy
- a US Senator who took a
strong stand against
communists in the 1950s.
- He used rewards methods to
encourage his followers to come
forward with information about spies.

12. Alan Sugar
- a British businessman who took
Amstrad Organization to great
heights.
He clearly portrays the reward and
punishment of transactional leadership
with people who followed his orders to
move forward.

13. Tim Parker
- Chairman of the National
Trust. He set on a path to
reconstruct the British
Motoring AA company. He
punished all tose who were inefficient
while rewarding the productive ones.

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