Subordinates seek motivation from their leaders through a combination of punishments and rewards in the workplace, according to transactional leadership. Subordinates, for example, may be punished if they perform a task incorrectly. Subordinates who complete their tasks correctly and on time, on the other hand, might be rewarded. This leadership theory was developed in 1947 by Max Weber, one of the founders of modern sociology. Bernard M. Bass, a leadership expert, expanded on the original leadership model in 1981.
The self-interest of the subordinate is thought to be the main motivation behind transactional leadership. There is an exchange process in this type of leadership that is meant to positively affect a subordinate’s behavior. In a business setting, for example, bosses frequently implement salary increases for employees who complete all of their tasks.
Transactional leadership can include a motivational monitoring technique in addition to rewarding or punishing subordinates. Those who are assigned to complete specific tasks may be monitored to ensure that they are completed efficiently. Alternatively, if it is determined that subordinates work better on their own, leaders may take a neutral stance. In order to complete required tasks without supervision in such a situation, the subordinate usually needs to have good work ethics.
When it comes to transactional leadership, taking a neutral stance is usually reserved for when subordinates have already proven themselves. Subordinates can then be free to make their own decisions while remaining fully accountable for the results of their work. Despite this freedom, long periods of time without any leadership direction can be harmful to a company’s productivity.
When it comes to getting potential employees used to transactional leadership policies that may be in place, many businesses follow a contract negotiation pattern. To become a paid employee, the potential employee must agree to all aspects of the contract. While a contract usually specifies salary amounts, it also specifies what an employee can and cannot do, as well as the benefits and consequences of both scenarios.
Transactional leadership styles can boost employee productivity while also benefiting the company as a whole. When employees are well-motivated, their work tends to improve or remain acceptable. This also gives businesses the opportunity to make more money.
Some leaders may take advantage of this leadership style for personal gain. A leader might try to persuade different employees to work under unethical conditions by using punishments and rewards. As a result, a lot of people think transactional leadership is only good for a short period of time.