There are several differences between transformational and transactional leaders. Which statement below explains the transactional leadership style correctly? i. Rewards Based ii. Extrinsic Motivation iii. Short-term thinking iv. Long-term thinking A. i, il and iii only B. i, il and v only C. i, iii, and iv only D. ii, iii and iv A

Question

There are several differences between transformational and transactional leaders. Which statement below explains the transactional leadership style correctly? i. Rewards Based ii. Extrinsic Motivation iii. Short-term thinking iv. Long-term thinking A. i, il and iii only B. i, il and v only C. i, iii, and iv only D. ii, iii and iv A

Answer 1

Transactional leadership, as compared to transformational leadership, operates on idea of both reward and punishment to motivate followers. Essentially, it is more about extrinsic motivation than the intrinsic motivation which transformational leadership provides. Leaders define work to get specific rewards or punishments in order to achieve compliance. II and III highlight the typical mechanisms of this leadership style - reward based, extrinsic motivation and short-term thinking. The leader does not attempt to change the future by shifting culture and challenging the status quo, but rather looks for ways to maintain it. Ergo, items i, ii and iii fit the description of a transactional leadership style.

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