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Psyc 231 Module E discussion post Transactional leadership
Course: Leadership and Human Relations (PSYC 231)
6 Documents
Students shared 6 documents in this course
University: West Virginia University
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Transactional leadership is based on the concept of exchange between leaders and followers.
Leaders provide their followers with resources and rewards in exchange for motivation,
productivity, and effective task accomplishment. This exchange and concept of providing
contingent rewards are at the heart of motivation, and is an essential component of effective
leadership. There are two styles of transactional leadership: Contingent Reward (CR) and
Management by Exception (MBE).
With the use of contingent reward, leaders provide followers with promised rewards when
followers fulfill their agreed-upon goals. Contingent rewards are highly satisfying and beneficial
to the leader, followers, and organization. Some research indicates transactional leadership can
provide structure and lead to positive outcomes.
Management by Exception (MBE) is a leadership style where the leader interacts little with
follower, provides limited or no direction, and only intervenes when things go wrong. In “active
MBE” leaders monitor follower activities and correct mistakes as they happen. In another type,
laissez-faire or omission, leaders are passive and indifferent toward followers and their task.
Regardless, in both cases there is little reinforcement or encouragement given, instead the
leader relies almost exclusively on discipline and punishment.
Despite the success of some transactional relationships in achieving performance, an exclusive
focus on such exchanges and transactions with followers is blamed for low expectations of
followers and minimal performance in organizations. Transactional contracts do not inspire
followers to aim for excellence; rather, they focus on short-term and immediate outcomes.
I think transactional leadership can be beneficial. People like to be acknowledged for their
work, and rewarding them aids in them wanting to continue to do more for the organization.
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