Transactional Leaders

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