Transactional leadership is a leadership model in which a leader is more likely to provide direction to his subordinates, and incentivize and punish their performance and focus on behavior to guide followers (Maulizar and Yunus, 2012).
The transactional leadership style is also known as managerial leadership which focuses on supervisory roles, organization, and group performance.
Transactional leadership style is a leadership style in which the leader encourages the obedience of his followers through two factors, namely rewards and punishments. Leaders with a transactional leadership style work by paying attention to employee work to find faults and deviations. This type of leadership is very effective in crisis and emergency situations.
According to Wibowo (2014, p. 300) transactional leadership is leadership that helps organizations achieve current goals more efficiently, such as by linking job satisfaction to reward assessments and ensuring that employees have the resources needed to get the job done . which emphasizes giving rewards to subordinates and controlling the work of their subordinates and directing them to the goals that have been set in order to clarify the roles and demands of the task (Garnasih and Pramadewi, 2013).
The transactional leader continues the direct agenda. They worry about completing tasks and doing what they say they have done. They are less interested in changing the status quo and more focused on ensuring that people are doing the specific tasks they have to do. The transactional leadership style is centered on short-term planning. This style can stifle creativity and keep employees stuck in their current roles.
Based on the various definitions above, it can be concluded that transactional leadership is leadership that aims to achieve goals by giving an award, directing and controlling subordinates to work effectively and efficiently.
There are several indicators that we can look at, including:
1. Contingent Rewards ( Contingent Rewards )
Subordinates will receive rewards from the leader according to their ability to comply with task procedures and their success in achieving predetermined targets .
2. Active exception management ( active management by exception )
This factor explains the behavior of leaders who always carry out directive supervision of their subordinates. The directive supervision in question is supervising the process of carrying out the duties of subordinates directly.
3. Passive management by exception . A transactional leader will give warnings and sanctions to his subordinates if an error occurs in the process carried out by the subordinate concerned.
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