Dimensions of transactional leadership updated

1. BUSINESS
COMMUNICATION

2. Dimensions of
Transactional leadership
By
Sourav bhargav
Devansh shendre
Satyam patel

3. The objective of this presentation is to research on the
various dimensions of transactional leadership and find
• how it works and
•why it works
•Whether it is right and
• how effective it can be in today’s world.
For this we went through different researches and case
studies. We came to know the level of effectiveness it has on
employees. For much clear understanding of the topic we
referred to a movie(pursuit of happiness,2006). The movie
clip is attached in presentation. There is another short
animated video attached which shows the basic concept of
transactional leadership and it effects on employees.
ABSTRACT

4. INTRODUCTION
Transactional leadership refers to a "transaction or exchange of
something of value the leader possesses or controls that the
follower wants in return for his/her services. The relations of
most leaders and followers are transactional: leaders approach
followers with an eye to exchanging one thing for another: jobs
for votes, or subsidies for campaign contributions" (Burns,
1978).

5. VIDEO AND CLIPS
https://www.youtube.com/watch?v=rWj6PdjXHA
I
https://www.youtube.com/watch?v=jVde5oP
m8aM

7. Assumptions of transactional theory
Managementstudyguide.com

8. •Employees are motivated by
reward and punishment.
PUNISHMENT
REWARD

9. •The subordinates have to obey the
orders of the superior.

10. •The subordinates are not self-motivated.
They have to be closely monitored and
controlled to get the work done from them.
SELF
MOTIVATION
NO
MOTIVATION

12. Communicationtheory.org

13. 10 TRANSACTIONAL LEADERSHIP
CHARACTERSTICS
1. Extrinsic motivation
2. Practicality
3. Resistant to change
4. Discourage independent thinking
5. Rewards performance
6. Constrained thinking
7. Passive
8. Directive
9. Emphasis on corporate structure
10.Emphasis on self interest

14. Four Dimensions of Transactional
Leadership
1.Contingent rewards: Providing various kinds of
rewards in exchange for mutually
agreed upon goal accomplishment.
2.Active management by exception: Watching for
deviations from rules and standards and taking
corrective action.
3.Passive management by exception: Intervening
only if standards are not met.
4.Laissez-faire: Abdicating responsibilities and
avoiding decision.

15. Transactional leadership affects on
employees
Transactional leadership styles can affect positively or
negatively on performance. It depends on employee
assessment. Positive effect can occur when employees
assess transactional leadership positively and a
negative effect can occur if employee considers that
transactional leadership styles can not be trusted
because they do not keep their promises, dishonest or
not transparent. Study effect of transactional
leadership on performance is conducted by Haryadi
(2003), Andarika (2004), and Ahn et.al (2005) which
explains that transactional leadership style has positive
and significant effect on employee performance.
ISSN (Online): 2319 – 8028
By Sundi K

16. Conclusion
Transactional leadership has been a long debated topic. The whole
concept of THIS for THAT has been questioned. It has ethical loop
holes and raises questions about do humans work only for money and
evade consequences. But many researches for example by Sundi k
has proven that transactional leadership is effective and employees
work harder and more effectively for rewards by their superiors as
they see it as a self achievement. But the draw back is if the promise
is not fulfilled the employees may feel betrayed and the whole
concept might collapse. So it can be concluded that leaders should
not depend much on this concept if they are not willing to fulfill the
reward or are unable to.

17. Thank you
Thank you
Thank you
Thank you