Charismatic leadership is said to be most prevalent in environments where there is great opportunities for change and consistent challenges, a dynamic environment (Hoogh et al., 2005). Organic structure was also positively associated with charismatic leadership …show more content…
Such leadership aims to keep the organization running smoothly and effectively by adhering to the rules and maintaining stability within the organization rather than promoting change (Hoogh et al., 2005).
Previous studies have typically taken a negative view of transactional leadership (e.g. Bass 1985); however, the results of this paper illustrate that certain forms of transactional leadership like using contingent rewards has been linked to positive organizational outcomes between leaders and followers and may have positive effects on job satisfaction and performance (Kim & Lee, 2011). Leaders who clearly define expectations and agreed-upon goals and performance levels are more likely to achieve success. Non transactional leaders should take this into account and understand there is a positive side of utilising contingent rewards to foster followers’ job satisfaction and creativity. Transactional leadership clarifies everyone 's roles and responsibilities. And, because transactional leadership judges team members on performance, people who are ambitious or who are motivated by external rewards – including compensation – often thrive(Liu et al.,