Pros and Cons of Using Transactional Leadership

What are the Pros and Cons of Transactional Leadership?
  • Employees who deliver results are rewarded. Transactional leaders are clear about how they operate. …
  • Rewards and punishments are clearly defined. …
  • Short-term goals can be achieved quickly. …
  • There is order and structure. …
  • It can be very productive.

Transactional leaders typically uphold the status quo and are less receptive to an outpouring of creativity and innovation than charismatic or transformational leaders would be. Instead of emphasizing motivational influence, traditional roles and power structures define transactional leadership. Today, the objective is to deliver results and maintain the business.

The effects of transactional leadership on employee engagement, innovation, and performance are frequently criticized. Some characteristics of transactional leaders may lower employee motivation and engagement. Their emphasis on structure, order, and maintaining the status quo can undermine employee engagement. The following statistics, which are impacted by some unfavorable characteristics of transactional leadership, are provided by the program management company BlackHawk Networking:

What is Transactional Leadership?

What is transactional leadership?

A highly structured style of leadership known as “transactional leadership” involves a company’s employees having clear expectations, rewards, and consequences. All staff can receive clear explanations of their roles and what to expect when they meet or fail to meet performance goals by using transactional leadership. Transactional leadership aims to maximize an objective evaluation of employees’ work while minimizing personal feelings toward them.

Pros and cons of transactional leadership

A crucial choice that can have a big impact on your team’s output is which leadership style is best for you and your business. In order to determine if a transactional leadership style is the best fit for your needs, it’s crucial to weigh its advantages and disadvantages.


Utilizing transactional leadership with your staff has many advantages. Some pros of a transactional leadership approach include:


There are factors that may make a transactional approach not always the best choice, but it can still be successful. Here are some drawbacks of employing a transactional leadership strategy, along with ideas for how you can still make it effective:


What is the main disadvantage of transactional leadership?

Transactional leaders punish their employees when they don’t achieve their objectives and don’t allow for failure or creativity. Employees are not encouraged to generate novel ideas in this setting.

What is the cons of transformational leadership?

Because of the structures they can put in place rather than because of their personalities, transactional leaders are excellent motivators. They identify the drivers of each employee’s motivation, design rewards that reflect those drivers, and then enact punishments that increase the value of the rewards. 5.

What is the pros of transformational leadership?

Disadvantages of Transformational Leadership
  • Influence is lost if the team disagrees with the vision.
  • Minute details can be overlooked. …
  • Puts added pressure on employees. …
  • May result in unnecessary risk. …
  • Frequent communication is time-consuming. …
  • Change is almost a prerequisite.

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