Clients are often faced with challenging circumstances at work, and each week we use  these obstacles as learning opportunities to ensure appropriate management. Sometimes in the minutiae of every day life, it’s difficult to allow time for future planning. This is, in part, a job of mine: amidst weekly learnings about effective management and resolving conflict, intention setting is important. 

What’s interesting about the phenomenon of learning is you truly do not know what you do not know. When considering what type of leader you want to be, you might think of descriptors such as charismatic, motivational, or servanthood. But there are actually a number of formalized leadership styles. What’s the benefit of being aware of these differing styles? It allows you to reflect on what you want to be (the intention-setting part). Similar to behavior, you can change your leadership style, but not without the awareness of what direction you want to head in.

Knowing your style helps direct your decision-making, and as a leader, that is paramount. There are numerous styles of leadership that aren’t inherently good or bad—they’re just different. They all have their benefits and drawbacks, as well as their appropriate uses in certain scenarios.

Today, I am sharing information about Transactional Leadership. It is not uncommon for me to see this type of leadership, especially for high performers (who often become leaders of teams due to their impressive track record). 

Simply put, transactional leaders give X and expect Y in return. 

Transactional leaders give instructions to their team members and then use different rewards and penalties to either recognize or minimize what they do in response.

Think of a leader offering praise to applaud a job well done, or mandating that a group member handles a despised department-wide task because they missed a deadline. Rewards and punishment are the way a transactional leader thinks. 

This is a “telling” style, but is often correlated to high-result work environments. So, a natural pro is that confusion is eliminated. Tasks and expectations are clearly mapped out by the leader. An undeniable con is that with such rigidity, creativity and innovation can be stifled and trust decreases. 

Food for thought: Do you transact as a leader? Where might you be falling short?