“Style of leadership that is based on the setting of clear objectives and goals for the followers (team) and uses either punishments or rewards in order to encourage compliance with these goals”. Business dictionary.com July 2015

 Also known managerial leadership  The opposite of transformational leadership “Transactional leaders focus on increasing the efficiency of established routines and procedures and are more concerned with existing rules than with making changes to the structure of the organisation”.

Assumptions of TL  People are motivated by reward and punishment  Social systems work best with a clear chain of command  Team concedes all authority to the manager

 Prime purpose of a subordinate is to do what the manager tells them to do  The manager is the sole decision maker and takes responsibility for the consequences of their decisions.  It is used in crisis management

Aims of TL  Increase, then maintain efficiency  Maintain the status quo  Concerned with efficiency rather than forward thinking

What influences the use of TL? 1.Type of workplace One of the main types of workplace which use transactional leadership are sales companies so a salesman will agree to try and reach a specific target in exchange for payment of a specific commission.

2. Type of person A. Employee Transactional leadership is most suitable for employees who are motivated by incentive and praise and know that they will have to deal with a ‘punishment’ if the work is not complete or targets aren’t met.

B. Type of leader Transactional leadership wouldn’t be effective if it didn’t have the right team leader who was comfortable with setting expectations and standards and giving the orders to maximise efficiency and productivity.

3. The type of team The team needs to be motivated by reward or punishment and have no self-motivation. They must also be content with being told what to do from the onset where they come to work to get the job done. The team need to be able to work in a set routine, obeying orders with no room for creativity.

Positives of TL  Clear chain of command and structure  Clear goals with all staff working towards the same goals  Goals are easily measured and can be achieved in a short space of time  Motivates team members by offering rewards

 Can improve individual and team performance  Increases competition between team members  Maintains status quo

Negative effects  Sanctions are carried out if targets not achieved  Creativity limited for the followers and the team  Quantity vs quality  Status quo

 Individual and team moral if targets not achieved  Negative effect on service user  Does not set long term goals  Stressful work environment

Examples of TL NHS related-  Infection control  Decreasing staff sickness  Improving patient throughput

Non NHS related-  Sales teams  Pharmaceutical companies  Sports teams  Military services

 Transactional leadership is a reward and punishment style of leadership.  It can be successful in certain industries but there are limitations to the style.  Within a healthcare setting it works best alongside other leadership styles.

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