⌛ Transactional Leadership
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Transactional Leadership Theory Explained
A leader who employs a transactional leadership style believes in granting rewards based on employee performance. They function in a heavily structured environment that encourages employees to achieve their best through rules and regulation. Typically, transactional leaders stick by the status quo and are not as open to a flow of creativity and innovation that a transformational or charismatic leader would be. Transactional leadership is defined by traditional roles and allocations of power instead of motivational influence. The goal is to produce results and keep the company afloat today.
Widespread criticism of transactional leadership technique is its impact on employee motivation, creativity, and performance. Some of the traits that transactional leaders employ might decrease engagement and employee self-motivation. Their concern with order, structure, and keeping up with the way things have always been can destroy employee engagement. According to program management firm, BlackHawk Networking, below are some statistics impacted by some problematic traits of transactional leadership:. Employees put a considerable emphasis on how they are treated and viewed by their managers and those in authority.
The traits of Transactional leadership do not emphasize engagement or employee recognition without the promise of performance. Transactional leaders are concerned with maintaining employee performance. Instead of motivating this through natural means of promoting self-motivation, inspiration, and personal purpose; transactional leaders use external motivations to reward desired performance, and they can also use disciplinary measures to punish behaviors or productivity they deem undesirable. This can frustrate leaders or employees who are driven by innovation and not leaving things the way they found them. Passive Leadership The transactional leader is only concerned with increasing productivity.
An effective leader has a distinctive set of personal qualities: integrity, courage, initiative and an ability to handle stress. This individual is often admired in their efforts to think critically, set goals and skillfully communicate and collaborate. Staying on track means staying focused on interpersonal skills, adaptability, team leadership and bottom-line results. Your path to successful leadership begins today. Here are some ways to begin to make that happen:. What could I have done better? Ask for feedback that describes the situation in which you were observed, what you did and how it affected the person giving you feedback.
Your feelings of power can interfere with your willingness to learn from mistakes. Take time out to review the thoughts and feelings connected to your work. Under constant pressure to produce, some leaders believe reflection is a waste of time, but looking for patterns and getting perspective helps you remain flexible in the face of change. Knowing how your organization thinks is critical to aligning yourself with its goals and helps you weather the changes that occur in every organization over time. But be careful not to become too political in navigating the culture. Building on your interpersonal relationship means building trust. Show empathy. Your direct reports, peers and bosses are all human beings worthy of your respect.
Listen without judgment. Take the feelings and perspectives of others into account. Turn away from email and the pile of papers on your desk and focus on the person in front of you. Separate what you think about the person from what he or she is saying. Ask questions to make sure you understand. If the person talking to you says something intriguing, make a note on it and get back to listening. In the typical transactional environment, the workers are allowed to choose which rewards they value the most. Company management and team leaders should allow workers to have some kind of control over the rewards they are able to learn. Incentives can come in a variety of formats. That way, workers who want a bigger paycheck can feel satisfied.
Workers who want more vacation time can also feel satisfied. Transactional leadership is defined by a strict set of rules and regulations. There is no room to bend or break these rules for any reason. They are considered the best practices for the team to follow. People who come from a creative mindset struggle to produce under such a leadership structure because creativity is usually produced through freedom of movement. Under this leadership style, violating policies or refusing to follow instructions can often lead to the termination of a worker.
Workers are expected to fulfill their duties without complaint. Without individuality, there is no flexibility, which means this leadership style can fail under certain conditions. Transactional leaders are rigid and unyielding. This attitude limits innovation because team members stay focused on assigned tasks. Structured policies dictate actions instead of common sense interactions with the regulations. Even when creativity is permitted within the regulations of a company, regulated creativity does not produce the same results as free creative thinking. That is often why this structure ultimately fails. It is difficult for individuals to be creative when their creativity is being dictated to them.
Companies can struggle when they focus on transactional leadership above anything else. If the leader leaves the company, then the rest of the team may not know how to complete their next assignment. Transactional leadership puts all leadership responsibilities in the hands of the team leader. It expects team members to be followers, offering input to the productivity process only if they have been invited to do so.
Even then, the assistant is more of a follower than a leader. They must follow the direction of the regulations. They must follow the direction of their supervisor. And, when they are not acting in a management role, they must follow the production requirements their position demands. Although rewards are part of the transactional leadership process, most leaders focus on the consequences of failure instead.
It places the blame on the people who are assigned a task, rather than placing blame on the leadership in the first place. That blame leads to disciplinary actions, which then leads to higher levels of employee dissatisfaction. Even if rewards are possible, the overall attitude of the transactional environment is that team members are being paid to do their jobs in a specific way. Rewards feel transactional, which reduces the value of them when received. Instead of focusing on employee welfare, the structure of the organization focuses on profitability and success instead. It is for this reason that many teams in a transactional environment tend to have low levels of morale.
Transactional leaders are also working under rules and regulations that cannot be changed. That means their emotions are not considered to be essential to the production process. That attitude is then transferred to their direct reports. As long as the work is being completed, the transactional environment does not care how people think or feel. Over time, these creates an insensitivity within the average worker to anyone but themselves. They focus on their assigned tasks only.
If someone needs help, then that means they are a failure and should be removed from the team. There are many ways for workers to feel motivated by their job.
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