Transactional

Leadership
Presented by:
1. Agnes Ong She Jet 1. Durgamageswary A/P Devadass
2. Ang Jia Heng 2. Emily Gan Hui Fang
3. Audrey Wong Sing Ning 3. Emily Teng Jie Ling
4. Chiew Fung Ling 4. Grace Kho Hui Xuan
5. Chung Yee Pei 5. Kelly Wong Ing Swan
Definition
• Defined as influence of leaders towards his
subordinate
-use reward and punishment as a form of
motivational medium
• More to telling style
• Essentially motivates followers to by exchanging
rewards with performance
• known as managerial leadership
• Leaders promote compliance of their
followers through reward and punishment
• Also known as true leadership style
• Punish their followers if followers’
performance do not meet predetermined
standard
Qualities
Transactional leadership
- “telling” leadership style
- Reactive leaders
- Focus on short-term goals
- Favour structured policies and procedures
- Thrive on following rules and doing things correctly
- Very left-brained
- Tend to be inflexible
- Opposed to change
• Practicality.
• They give when they get.
• Rewards are given when metrics are met.
• Adhere more to realism over idealism.
• Value order over a system that promotes
free-thinking.
• Loyal to the company structure,
procedures, and policies instead of their
employees.
• Often a discomfort with change will make
them shy away from innovation
Advantages
1. It can effectively motivate team members to
maximize productivity.

• People were motivated to work – reward that

they find to be valuable.
• Positively influence the lives of others
• Clearly defined parameters for specific reward
help the members know when they will reach
that reward and what they will receive when
they do.
2. Create achieveable goals.

• Transactional leadership creates defined end points of

a goal as part of their overall organizational structure.
That means workers can grow in confidence as they
progress toward goals because every step they need
to take is outlined for them.
• Shortcoming - People are expected to follow the rules
at all times.
3. Simple process to implement

• Straightforward and simple.

• Does not required a manager to have extensive
training, a high emotional intelligence, or
specific personal leadership traits.
• Rule enforcer
Disadvantages
 Disadv
atages
Focus more on the
productivity of the
worker than the
efficiency of the
leader

Zero value Eliminates

on individualit
empathy y

Create more
Limits the
followers
than leaders innovation
 Examples of
transactional leaders
Charles De Gaulle
• A French General who played a key
role in setting up the French Republic.
• The first president for a decade from
1959.
• Used a ‘telling’ and ‘direct’ style of
leadership that has been acquainted
with a transactional approach.
• Made use of the reward and
punishment structure effectively in
motivating his subordinates to
perform to their best capacity.
• The Gaulle quote that claims,
“Deliberation is the work of many
men. Action, of one alone” explains
the transactional framework.
• A leader’s role in Gaulle’s view was
Joseph McCarthy
• A US senator and another political
figure to display transactional
qualities in everyday leadership.
• Took a strong stand against
Communists in the 1950s when he
suggested that the top levels of US
government infiltrated with Soviet and
Communist spies.
• Used rewards methods to encourage
his followers to come forward with
information about spies.
• Employed the transactional
framework of expectations effectively
in his governance. However, he soon
let his extreme actions get the better
of him following a censure by the US
Ma Yun aka
Jack Ma • Co-founder and executive chairman of
Alibaba Group Holding Ltd., a
multinational technology conglomerate.
• Chinese business magnate.
• Philanthropist
• One of China’s richest men with a net
worth of US $42.2 billion (As March 2018)
• The company has little or nothing to
show in term of research, development,
and innovation or change of strategies.
• The nature of business which capitalizes
on ever existing and growing demand
for linkage between sellers and buyers.
By merely linking sellers and buyers,
Alibaba is being transactional in nature.