Transactional Leadership Wins and Cautions

This OpEX Brief outlines the advantages and disadvantages of Transactional Leadership.

Recognition is given to the fact that one can Google or use AI to uncover the advantages and disadvantages of Transactional Leadership.  The OpEx Briefs from Opexcis are experiential through multiple businesses and leadership positions.

What are the top wins your operation can derive from Transactional Leadership?

1. Implemented correctly, Transactional Leadership provides clarity on expectations.  The lack of clarity on expectations caused by ineffective communication from leaders is a primary contributor to poor performance management.

2. Transactional Leadership can create quick results.  Team members motivated by transactional rewards, with clarity on expectations, will modify behavior immediately to receive the rewards they have been promised.

3. Some team members are motivated knowing they can control their own destiny.  Transactional Leadership increases employee engagement for members of the team that know they will be rewarded if they perform.

What should you be cautious about when relying on Transactional Leadership?

1. Too much emphasis on Transactional Leadership causes leaders to think short term.  The long-term growth and development of the team is overlooked by the transactional organizational culture.

   
   

2. The rewards and punishments in a transactional environment can lead to leaders depersonalizing their team.  The need to develop relationships is diminished when leadership’s role is to manage the transactional systems.

   
   

3. Although Transactional Leadership can create quick results, long term performance becomes entirely reliant on the transactional systems.  The business must make a long-term commitment to the transactional form of leadership.

What positive or negative experiences have you observed from the transactional leadership style?