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Kendra Cherry

Transactional Leadership - Psychology Definition of the Week

By , black-rose-bielefeld.de GuideMarch 2, 2012

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transactional leadership

Transactional leadership, sometimes referred to as managerial leadership, focuses on the interactions between leaders and followers. Transactional leaders utilize rewards and punishments to motivate their followers. While it has limitations, it can be effective in certain situations. For example, a transactional style can work well in cases where the problems are clear-cut and fairly simple. One of the major problems with this style is that it does not encourage group members to look for solutions to problems or to contribute creatively, which is why transactional leadership is not the best choice in complex situations where input from group members is required.

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