Which style of leadership relies primarily on transactional exchanges, such as contingent rewards and management-by-exception, to secure employee compliance?
ATransformational Leadership
BTransactional Leadership
CServant Leadership
DCharismatic Leadership
Explanation
• Transactional Leadership utilizes structural authority and trade-offs, motivating followers through rewards for compliance and penalties for deviation.
• It maintains routine efficiency and task alignment without necessarily transforming employees’ core values or long-term vision.
• Key dimensions include Contingent Reward, Active Management-by-Exception, and Passive Management-by-Exception.
Exam Relevance
- Topic: Leadership
- Subtopic: Transactional Leadership

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