Transactional Leadership: Assumptions And Inner Workings

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Transactional leadership is an organizational scheme where leaders motivate and direct followers by appealing to their self-interests. It works around the system of providing rewards if an employee does well, or penalties if the employee underperforms.

One of the basic assumptions of transactional leadership is that employees perform better under a definite and well-established chain of command. The workers can distinguish between the levels of leadership and which specific leaders are delegated to certain tasks. It also assumes that the primary motivation of employees is determined by rewards and punishments. Third, the primary directive of employees under such setup is to follow the orders of the leaders. Lastly, employees need to be closely monitored in order to ascertain that expectations and objectives are met.

Transactional leadership is based on the relationship between the employee and the management, defined by mutual need fulfillment. In the implementation of the rewards and punishments system, rules and procedures are integral. This type of leadership is effective in setting initial expectations and standards which will boost the efficiency and productivity of the team.

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Transactional leaders are expected to give constructive feedback to their team members, which leads to an increase in the efforts of the latter to receive better feedback in the future. Transactional leadership is also fully effective in the event of a crisis or during crunch time. Focus, one of the strengths of this kind of leadership, is key in the mitigation of disasters.

Seattle-based business coach Emile Haddad’s sensitivity to differing values within the workplace has enabled him to come up with business management models that promote professionalism and excellence. Get to know him more through this blog.

Business Culture: The Foundation of Success

Business success is a result of factors woven together by core values. Large corporations are the products of smart decisions and meticulous planning. They gave importance to details that affect the overall business process, thus preventing corporate imbalances and implementing lean but strategic business structures.

A tip of the scale in the wrong direction could prove fatal to any organization. Meanwhile, workplace culture lends meaningful weight in pursuit of objectives. Below are some of the reasons business culture becomes the centerpiece to the success of a corporation:

1. Employee sustenance A lot could be compromised whenever a quality employee decides to leave a company. Apart from losing manpower, the company undertakes an expensive re-hiring process. But with a strong workplace culture, attrition rate is kept to a minimum.

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2. Company image Social media is a big part of the lifestyle of today’s generation. Customers and employees alike turn to their social networks to tune in to trends and establish online engagements with the market. An attractive workplace culture will eventually find comfort in this platform, making it a fertile ground for good company branding.

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3. Strategy A good workplace culture can instill values among employees that are consistent with the vision of the company. It aspires for synergy and overall efficiency in the workplace.

Emile Haddad is a business consultant based in Seattle, Washington, who teaches entrepreneurs how to build a culture of excellence within the workplace. For more insights, click here.