Another disadvantage of transactional leadership is its practice of providing the tasks to employees, along with their policies and principles to be strictly followed. If and when something goes wrong in the process, employees are the ones to be blamed and who are responsible for the outcome.

Advantages.

• #1: Lowers Turnover Costs. Inspiring leaders keep staff more often and for longer than other types of leaders.
• #2: Gets Staff Engaged.
• #3: Drives Change.
• #4: Spots Gaps.
• #5: Creates Passion.
• #6: Encourages Learning.
• #7: Solves Problems.
• #8: Improves Communications.

Better Outcomes from Corporate Learning Transformational leaders are particularly good at culture building, providing intellectual stimulation and individual support, modeling positive behaviors, vision-building and holding high performance expectations for employees.

What are the Pros and Cons of Transactional Leadership?

• Employees who deliver results are rewarded.
• Rewards and punishments are clearly defined.
• Short-term goals can be achieved quickly.
• There is order and structure.
• It can be very productive.
• External motivation works up to a point.
• Creativity is discouraged.

The advantages and disadvantages of transactional leadership show that this management style can create fast results that are predictive. It can also create low morale levels within teams, limit creativity, and ultimately put a company at a disadvantage should certain leaders leave.

Transactional leaders monitor followers carefully to enforce rules, reward success, and punish failure. They do not, however, act as catalysts for growth and change within an organization. Instead, they are focused on maintaining this as they are and enforcing current rules and expectations.

10 Transactional Leadership Characteristics

1. Extrinsic motivation. A transactional leader aims to elicit the desired performance from the team by motivating them externally.
2. Practicality.
3. Resistant to change.
4. Discourage independent thinking.
5. Rewards performance.
6. Constrained thinking.
7. Passive.
8. Directive.

Transactional leadership, also known as managerial leadership, is a leadership style where the executive relies on rewards and punishments to achieve optimal job performance from his or her subordinates.

What is another word for transactional?

Some of the renowned Transactional Leaders are Bill Gates, Norman Schwarzkopf, Vince Lombardi, and Howard Schultz. To elaborate the way on how Transactional Leaders work – Bill Gates, known for his charismatic leadership.

Bill gates is a business entrepreneur who is attributed to having practiced transformational leadership during his time as the CEO of the Microsoft Corporation. The success of Microsoft as the leading company in the provision of the software made gates one of the wealthiest people in the world as listed by Forbes.