Transactional leadership, a style which is form of management than leadership, is very effective in motivating and encouraging subordinates and obtaining productivity. This type of leader assumes that their subordinates are only motivated of rewards which will surrender authority and accomplish objectives and goals set by the leader.
Advantages of Transactional Leadership
1. Rewards and Incentives: This type of leadership functions on the system of giving rewards and incentives. People will be given remuneration once they accomplish task and the objectives given. The relationship of the leader and subordinates are plain transactional, many company or organizations uses this to encourage productivity. People under transactional leadership will get additional reward when they exceeded form the expectations and the leader will also handle and work on those people with low performance.
2. Structure is Clear: Subordinates under this leadership benefit a structured and clear system. They clearly know what is expected from them and the chain of commands. They know that when they completed task, follow objective and orders they will be rewarded of something which they find to be with great value. It’s also clear to them that a negative consequence is always a result of not being obedient to the orders, this makes them motivated to constantly perform their best for them to reach the positive effect.
3. Short Term Goal: Under this leadership, objectives and goals were only short term which makes them less demoralizing but fulfill easier. Employees and subordinates were motivated by its fact that short term goals can be easily attained. This goal provides opportunity for the sense of autonomy or independence since there is a low need for the micromanagement. It’s clearly understood by the employees what the company expected from them, they independently complete and accomplish the task at a hand.
4. Control Rewards: Most people cannot control job satisfaction under this leadership, but it’s easy for them to settle on what value more. There are cases that the leaders and management gives their employees say or control on what type of reward they want once they completed the task. Incentives can come in a lot of form that ranges from points or financial gain which they can redeemed for a variety of process like an added time to accumulate a paid day off.
Disadvantages of Transactional Leadership
1. This type of leadership is flawed since it motivates people only on the base level. Punishment and reward does not motivate on the higher level of peoples thought and development. This type of leadership will only be effective on works were followers perform their task and processes, which well produced and designed dependably with strong good results.
2. This is poor when higher thinking skills level is needed to utilize. In this, creativity is very limited since its objectives and goals cannot be defined only with set of process.
3. This also limits its follower that wishes to engage with higher level of professional environment. Motivating is not effective this type of level, these followers is much motivated in unique individual way. The punishment and reward are very basic to a motivator of this level of subordinates.