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Who introduced the concept of transactional leadership?
James MacGregor Burns
Who refined the theory after Burns?
Bernard Bass
Which earlier thinker influenced Burns’ ideas?
Max Weber
In what decade did the theory appear?
1970s
What is the main idea of transactional leadership?
Exchange of rewards and punishments for performance
What motivates people under transactional leadership?
External awards
Where is transactional leadership most effective?
In structured environments like the military or factories
What do transactional leaders focus on?
Performance, discipline, measurable results
What is the limitation of the transactional leadership?
Lack of innovation and creativity
What kind of environment suits this style least?
Creative or dynamic workplaces like startups
In the army, promotions depend on meeting performance standards and discipline rules.
→ Which element of transactional leadership does this show?
Contingent reward and structured hierarchy.
What are two key weaknesses of transactional leadership?
No creativity; short-term focus.
Why might transactional leadership work well in a call center but not in a tech startup?
Because it fits routine, measurable work but not creative tasks.
You can either:
A) Give bonuses to the top 10% performers, or
B) Give small bonuses to the whole team for collective effort. Which choice is more transactional?
A – reward the top performers.
After finishing a tough project, the boss orders pizza for the whole team to celebrate. What kind of motivation is that?
Positive reinforcement / reward behavior (transactional element used supportively).
A famous restaurant chef screams at cooks, demands perfection, and fires anyone who doesn’t meet standards. What leadership style is this?
Autocratic leadership
A young tech founder constantly shares his vision of changing the world, motivates people to innovate, and says, “We’re building the future together!”. What leadership style is this?
Transformational leadership
A team leader organizes a meeting and says: “Let’s vote on the project direction — everyone’s opinion matters.” What leadership style is this?
Democratic leadership
Your team has no deadlines, no rules, and everyone does things their own way. It feels “free,” but nothing gets finished. What should the leader do first?
Set structure and clear roles – bring in transactional leadership elements.
The boss doesn’t say much, lets the team handle everything, and only speaks when there’s a mistake.
What’s the risk of this approach?
t becomes passive or laissez-faire – lack of guidance.