Transactional Leadership: Advantages and Disadvantages
Apr 19, · The advantages and disadvantages of transactional leadership show that this management style can create fast results that are predictive. It can also create low morale levels within teams, limit creativity, and ultimately put a company at a disadvantage should certain leaders leave. Dec 16, · Disadvantages of transactional leadership Rewards don’t work for everyone, and this kind of system can stifle creativity. Here are more details about why transactional leadership might not be right Author: Karen Mccandless.
A leader who employs a transactional leadership style believes in granting rewards based on employee performance. They function in a heavily structured environment that encourages employees to achieve their best through rules and regulation.
Typically, transactional leaders stick by the status quo and are not as open to a flow of creativity and innovation that a transformational or charismatic leader would be.
Transactional leadership is defined by traditional roles and allocations of power instead of motivational influence. The goal is to produce results and keep trransactional company afloat today. Widespread criticism of transactional leadership technique is its impact on employee motivation, creativity, and performance.
Some of the traits that transactional leaders employ might decrease engagement and employee self-motivation. Their concern with order, structure, and keeping disavvantages with transactipnal way things have always been can destroy employee engagement.
According to program management firm, BlackHawk Networking, below are some statistics impacted by some problematic traits of transactional leadership:.
Employees put a considerable emphasis on how they are treated and viewed by their managers and those in authority. The traits of Transactional leadership do not emphasize engagement or employee recognition without the promise of performance. Transactional leaders are concerned with maintaining employee performance. Instead of motivating this through natural means of promoting self-motivation, inspiration, and personal purpose; transactional leaders use external motivations to reward desired performance, and they can also use disciplinary measures to punish behaviors or productivity they deem undesirable.
This can frustrate leaders or employees who are driven by innovation and not leaving things the way they found them. Passive Leadership The transactional leader is only concerned with increasing productivity. This means there is no ,eadership for present problems that arise that have nothing to do with performance.
There is more of a reaction to current issues than a commitment to proactively planning for them. Dependence on Hierarchy Transactional leaders depend on the authority given to them by corporate hierarchies. Instead of cultivating a style that improves trust, loyalty, and engagement, these leaders are more concerned with maintaining a rigid organizational structure that grants them power.
Lack of Direction Since these leaders do not pay a lot of attention to problems or happenings outside of employee performance, there is a likelihood that employees will not receive the direction they need.
Communication, process efficiency, and vision will suffer since those traits are not a priority. An Unhealthy Increase in Competition High employee performance is the ultimate goal of the transactional leader. Therefore, there will likely be an emphasis on competition.
This will cause employees to act in their self-interest. Traits like collaboration and teamwork will not become prevalent. Part 2. It can be daunting to outline a plan to meet a significant goal or eventually reach a vision. Transactional leaders implement short-term goals, and other leadership styles can create short-term goals along the way to fight against burnout and low employee morale. Move Beyond Performance Employees are their best when they feel motivated, engaged, and respected.
Their how to light a cutting torch and ideas should be supported. Employees should be recognized when aer have ideas that can better the company.
Increase Opportunities for Leadership Development Companies will not survive if they do not have leaders to replace those that leave. Transactional leaders need to become open to moving beyond productivity to encourage leadership development. It will save the organization a lot of time and money if they are able to create leaders internally. Approach Problems Proactively Again, leaders cannot wait to address problems when they arise.
If turnover is increasing, tasks are taking longer to get done, or conflict is on the rise; leaders need to deal with these problems as they arise instead of waiting for the problem to become unavoidable.
Thought needs to be given to strategies that take care of present issues that are not just related to productivity. Individuals who use transactional leadership might come off as insensitive and unbothered by the emotional aspects of being a manager, especially if intrinsic motivations are not cultivated, and the emphasis is solely on task completion.
Tansactional, these leaders are effective at keeping an organization together dsadvantages a crisis or accomplishing short-term goals rapidly. Effective leadership is all about communicating effectively.
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The Traits and Principles of Transactional Leadership
Dec 10, · Cons: The Weaknesses and Disadvantages of Transactional Leadership 1. Deter Certain Individuals Due to Focus on the Basics Depending on the situation, the strong focus on the basic needs of individuals is one of the weaknesses of transactional leadership. Another disadvantage of transactional leadership is its practice of providing the tasks to employees, along with their policies and principles to be strictly followed. If and when something goes wrong in the process, employees are the ones to be blamed and who are responsible for the outcome. May 19, · Disadvantages of Transactional Leadership. There are some substantial cons with transactional leadership. Make sure you are aware of them before you use this leadership style, that way you can mitigate the effects. 1. External motivation works up to a point. Some people are motivated by rewards, others aren’tiktoksmmen.com: Carl Lindberg.
Transactional leadership is both a theory and a style of leadership that focuses on the supervision and organization of individuals and tasks, as well as the use of a performance assessment through rewards and punishment.
Unlike transformational leadership , which focuses on creating a vision and spearheading change, this approach involves maintaining the status quo and providing rewards in exchange for task performance. Simplicity is a critical advantage of transactional leadership over other theories and models of leadership. The model is considerably straightforward because it focuses on a direct exchange process in which the transactional leader provides the rewards while the followers perform the expected tasks in exchange.
This advantage translates to a more specific advantage: Transactional leaders are effective in getting standardized tasks completed. To understand better the simplicity of transactional leadership, it is important to emphasize the fact that it is also known as the management style of leadership. Hence, this implies that a transactional approach is the most fundamental method of leading a team or organization because of its emphasis on supervision, organization, and performance.
Another strength of transactional leadership is its emphasis on motivation through the satisfaction of basic human needs. The basic levels of need satisfaction found within the hierarchy include physiological needs such as food and shelter, as well as safety needs such as personal security, health and wellbeing, and financial security. Leaders or organizations following the transactional approach to leadership immediately address these basic needs, thus enabling them to implement a standardized model for motivating people and managing their performances.
Certain leadership situations can take advantage of the strengths of transactional leadership. It is effective in increasing the efficiency of established procedures or routines, handling new organizations characterized by chaos and the absence of rules, and establishing and standardizing practices, processes, and behaviors.
For existing organizations, the focus of the transactional style of leadership is to keep things the same. Some aspects of transactional leadership exhibit elements of authoritarianism and micromanagement. What this means is that it places all the pressure on the leader rather than the entire team, provides clarity within the chain-of-command, reduces the time needed to make decisions, creates a consistent result, promotes efficiency in accomplishing standardized tasks, and streamlines communication.
Depending on the situation, the strong focus on the basic needs of individuals is one of the weaknesses of transactional leadership. Note that the hierarchy of needs developed by Maslow illustrates the stages of growth in humans in consideration of their needs.
Once individuals have reached the basic levels of needs such as physiological and safety needs, they naturally advance to more advanced levels such as belongingness, esteem, and self-actualization. Some individuals are dissuaded by the bare minimum. For instance, there are employees who cannot be motivated by salaries and standard employment benefits alone. Some aspire to find deeper meanings in what they do while others want to have an integral part of the group or organizational success through deeper participation and collaboration.
Another weakness or advantage of transactional leadership is that it is inflexible. Because there are individuals who are deterred by the bare minimum, there are certain leadership situations in which transactional leaders can fail in motivating these people.
Examples of these leadership situations include competitive team sports and occupations that require creativity and solving problems. The autocratic nature of the transactional approach to leadership is not also suitable for situations that require strong collaborations among individuals. Furthermore, the straightforward exchange process utilized in this approach is not appropriate in organizations that require a complicated chain-of-command and more than one reporting line, in addition to collaboration and creative thinking requirements.
Because transactional leadership shares some similarities with authoritarianism , as well as in micromanagement style , it also shares the disadvantages inherently found in these management and leadership styles that revolves around strict compliance and personal control over decisions.
Some of these drawbacks include the inability to make the best decision because of lack of insights and inputs from different sources, the lack of feedback mechanism needed to make corrective changes, elimination of innovation, and too much dependence on the transactional leader.
Other drawbacks center on a decrease in the morale and motivation of followers. For example, some employees who are inherently creative thinkers and problem solvers might feel alienated because they think they are not contributing to organizational goals and objectives.