Disadvantages Of Using Transactional Leadership

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Transactional leadership is a style that lays out clear goals and objectives. To encourage staff members to act in accordance with these goals, punishments and rewards are utilised (Business Dictionary, n.d.).

Three disadvantages of using a transactional leadership style:

Motivation. There is only a general view of motivation present, this means that there is no consideration of individual variances. The reward/punishment strategy doesn’t tend to motivate beyond the base level of a person’s development (Advise America, n.d.). A task will be performed in exchange for a reward and to steer clear of punishment. A transactional leader will see a job as an exchange for small reward, for example money. Therefore, praise is rarely given (Benjamin, n.d.), unless the result is extremely good, because the worker was simply delivering their side of the transaction.

Authority and blame. If something goes wrong, full responsibility and fault is with the staff member assigned the task. People are more likely to become unhappy in their job and fearful of punishment because little praise or gratitude is ever expressed, but blame is quickly passed out. This will lead to the inability to retain staff and perhaps even customers because inexperienced new workers will constantly be entering the business, no doubt decreasing
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A transformational leader will utilise the needs and demands of their staff. The leader will recognise possible motives of staff and “seeks to satisfy higher needs, and engages the full person of the follower” according to Sir MacGregor Burns (Zellman, n.d.). The empathetic, inspirational and charismatic characteristics of a transformational leader provides an automatic advantage over a transactional leader in almost any task undertaken. The leader believes so strongly in their vision that employees believe the vision too (Root, n.d.), motivating and inspiring them to be more productive to help achieve organisational

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