Which of the following is the characteristic of transactional leader?

Question

Accepted Answer

The correct option is 2:
Management by exception is a core component of the Transactional Leadership style. Transactional leaders fundamentally view the relationship with their followers as a transaction or exchange: they provide rewards or recognition for meeting defined performance targets and impose corrective action when standards are not met. Management by exception is the leader's primary corrective tool, involving the manager actively monitoring work for deviations from rules and standards or passively intervening only after mistakes or problems have already occurred. This characteristic is central to the transactional approach, as it emphasizes monitoring, control, and adherence to established organizational objectives rather than inspiring or developing subordinates.

The incorrect option is 1, 3, and 4:
Inspirational motivation, Idealised influence, and Intellectual stimulation are the main components of **Transformational Leadership**, which is diametrically opposed to the transactional style. Transformational leadership focuses on changing and transforming people by inspiring them to achieve extraordinary outcomes and develop their own leadership capacity. **Idealised influence** refers to the leader serving as a moral role model, which builds follower trust and reverence, something beyond the simple contractual relationship of a transactional leader. **Inspirational motivation** is about setting a compelling vision and communicating high expectations to inspire commitment, an emotional appeal not typically found in the transactional exchange model. Lastly, **Intellectual stimulation** involves encouraging employees to question assumptions, challenge the status quo, and be innovative, which contradicts the transactional leader’s focus on enforcing existing procedures and correcting deviations.