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Transactional Leadership

Lead Today

Transactional leadership is one of the eight main “theories” of leadership. This type of leadership focuses on the role of supervision, organization and group performance. This theory bases leadership on a series of rewards and punishments.

You may not have known what this practice was called but I’ll bet you have often seen it used in business. When employees are successful, they are rewarded; when they fail, they are reprimanded or punished. Every interaction between the “leader” (I use that word very loosely here) and their people is a separate transaction. Think “what have you done for me lately” and you’ll get the idea behind transactional leadership.

Transactional leadership is an incredibly lazy way to lead. It requires very little on the part of the leader. They have no need to really know their people and they don’t have to care about them one bit. They are not responsible in…

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