They do not show much interest in the improvement of the employees and the quality of the product as long as the numerical target of the organization is achieved. The leadership style compliments rigid organizational hierarchy. Transactional leadership has which of the following characteristics? Transactional leadership requires specific rules or regulations be followed to complete stated objectives. Transactional leadership is defined by traditional roles and allocations of power instead of motivational influence. Transactional leader rewards the best performing employees and punishes worst-performing employees. … We have pioneered a revolutionary approach to identify exceptional leaders and match them to the positions you need. Every work completed comes with a prize. 10. Transactional leadership is based on the exchange between leader and employee. Save my name, email, and website in this browser for the next time I comment. The second involves morality 3. We believe the right leaders make all the difference. View MCQs leadership.docx from FINANCE 101 at Business Management & Finance High School. 06. They focus mainly on maintaining status quo (existing state of affairs) and … All rights reserved | Powered by, 10 Transactional Leadership Characteristics, Interim CEO at Youth Evaluation and Treatment Centers | Valley Clinical Services. Transformational leaders have a strong sense of strategy, both for the bigger picture of the business and for the day-to-day details. a) Believe success arises from leaders and staff working together b) Builds a strong and distinctive image for the organization. As defined by ChangingMinds.org, transactional leadership is built upon contingency — subordinates know they will receive a reward for a job well done or chastisement for one not completed successfully. If the employee is not behaving expectedly or not achieving the expected target, he will be punished by the manager. How do you identify a transactional leader? Leadership MCQs Multiple Choice Questions 1. Transactional leadership depends on self-motivated people who work well in a structured, directed environment. Once the goal is accomplished, they set another goal for the employees to drive the organization towards the main final goal. 07. c) Takes the view that rewards and punishment motivate staff d) Employs a clear chain of command. Their approach to solving problems is one of pragmatism, and they take all realistic constraints and opportunities into account. Transactional Leadership is focussed towards planning and execution as compared to transformational leadership … For example, meeting a specific goal or performance criteria earns the employee a reward. Rewards, through positive reinforcement, are given for doing what is required; rewards are withheld when the employee does not reach the expected level of perfor… SBS – MBA / MSC Answer the following questions Question 1 According to … They react to organizational problems only when the problem occurs. They like to maintain regular policies and procedures without adding any modification. The relationship between the employee and the leader is a transactional one. 02. Lower turnover rates Higher productivity Higher employee satisfaction All of the above 5. _____ is increasing Leadership rapidly: A. Transactional leaders expect followers to be compliant and ensure this by way of rewards and punishments. Test Bank Description of the Test Bank This test bank consists of 300 multiple-choice items grouped by chapter and topic. Command C. Control D. Getting others to follow 2. Since they operate the business based on the rewards and punishments, it is important to set short term goals for the employees. These leaders do not encourage employees to act creatively or think for themselves. They are quick to notice when employees achieve a predetermined goal and will reward them appropriately. Development of a new product Seeks to ensure staff understand issues facing the organisation. Emphasis on self-achievementTransactional leaders always encourage the employee to achieve the set individual target. Instructions. It is the most common type of leadership style used in large corporate environments, international agreements, and military operations. Discourage innovationTransactional leadership discourages creativity and innovation. The transactional leader places a lot of importance on hierarchy, and the corporate structure and culture. The motivational style of a transactional leader is one of appealing to the self-interest of the employee. Directive. Get Our Program Guide If you are ready to learn more about our programs, get started by downloading our program guide now. DirectiveTransactional leadership does not give any opportunity for the employees to involve in the decision-making process. they do not encourage the employee for teamwork or team achievement. They are able to navigate decisively between the two and never lose sight of either. Case Assignment Drawing on the material in the background readings and doing additional research, please prepare a 5- to 6-page paper (not including the cover and reference pages) in which you: Analyze the key characteristics of transformational and transactional leadership and apply them to two leaders of your choice. Dickinson College: Inspiration for a Leadership ... and possess the five key characteristics this Chapter 6: Multiple choice questions. 1. They are concerned with the … The relation between employees and leaders is a transactional one. In contrast to transformational leadership, in which there can be more than one leader in a group. Instead, they take the necessary actions to solve the problem once it arrives. Since the transactional leaders do not motivate innovation and creativity, they are not flexible for changes. This quiz/worksheet combo will ask you questions about the facts associated with transactional leaders. Below are a few characteristics of Transactional Leadership: Extrinsic approach. 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. Contact us if you are looking to find an exceptional leader. Our search lead was knowledgeable, helpful, always available to support us through all of the decision points we encountered. Transformational leaders have many qualities, but this list identifies the most important leadership characteristics they need to change the world. Multiple Choice Questions for Leadership Management 14459 Words | 58 Pages. Extrinsic motivation. Discourage independent thoughts transactional leadership can be separately identified based on a few unique characteristics in the leaders. Strategy B. 05. ... What are the main characteristics of an effective control system? They believe this method as the most suitable way of motivating employees. Graduates of this program know how to enact excellent leadership team development with the people they train. Employees are rewarded for behaving in an expected manner, and punished for any deviation. The first involves purpose 2. 04. Since this leadership style is in direct contrast to the transformational style, … One of the characteristics of the leader is practicality. 09. a) Flexibility, accuracy, timeliness and objectivity Transactional leadership is ideal to carry out projects that need to be done in a systematic and structured manner. This structure helps everyone experience immediate successes because they can see the forward progress that is being made. Seeks to pick up the mood of the audience. They do not encourage to improve employee skills unless it is necessary to improve the numbers of organizational output. Your email address will not be published. Having a clear vision will give you the … They are not willing to take any action to prevent the problem. That reduces the risks of demoralization within the rank-and-file, creates more confidence at the individual level, and allows for work to be delegated without the need for micromanagement. Interest on hierarchyTransactional leaders demonstrate more interest in the organizational hierarchy. They believe in treating employees based on their position in the organizational hierarchy. One of the most distinct characteristics of a transactional style of leadership is practicality. Their team led our agency through the recruitment process for a new CEO with great results. Many political leaders demonstrate the transactional style. These styles evolved based on individual behavior, organizational requirements as well as the changes in the business environment. They expect the employees to follows the set rules and procedures. Expect to be micromanaged and directed if you’re working under a transactional leader. There are three main differences between the two styles of transformational and transactional leadership. By contrast, transformational leadership seeks to motivate and inspire workers, choosing to influence rather than direct others. They do not encourage them to think outside the box and to come up with innovative concepts to improve the process. If the employee achieves a certain goal, they are rewarded. Related: Difference between Leadership and Management The core of transactional leadership lies in the notion that the leader, who holds power and control his or her employees or followers, provides incentives for followers to do what the leader wants. Transactional leaders focus on creating short-term plans that lead toward a long-term vision. Here are some tell-tale signs. _____ actions by an entrepreneur is most likely to contribute to creative destruction. Due to this reason, transactional leadership can be considered as one with the most practical and goals and objectives. Transactional leadership is a common form of leadership most often found in the middle management level. Transactional leadership is most often compared to transformational leadership. In Transactional Leadership, there is only one leader in a group. The definition of transactional leadership and transformational leadership as well as the characteristics of transactional and transformational leaders. Let’s study each trait and its relation to the leadership style, as well as the different ways a leader could train to improve these traits. A transformational leader is somebody who can take an audience, often irrespective of that audience's background, and bring about a significant change in their opinions of a particular topic. A transactional leader is happy to work within the existing systems and constraints and will operate from within the boundaries to achieve the goals of the organization. Because transactional leaders do not seek to transform things, they tend to be highly resistant to change. Or, to be considered for exceptional leadership opportunities with our clients, please take the first step by joining the Y Scouts Leadership Community. The leader tends to only react to things that happen and does not take proactive steps to prevent problems. These leaders take initiative as long as there is mutual benefit in the exchange. Resistant To Change. Your email address will not be published. “A leader is the one who sees more than others see, who sees farther than the others see, and before the others see.” – Leroy Eimes Paternalistic leadership is a managerial approach that entails a dominant authoritative personality who acts as a matriarch or patriarch and treats partners and employees just like they are members of large extended families. Managers use the reward-punishment model in transactional leadership to gain compliance from their followers. 01. They encourage employees by presenting rewards when they achieve targets and when they behave expectedly. In the modern business world, we can see many leadership styles. Strong Leadership Ego. Transactional leadership regards the transactions of managers and their subordinates. When the employee does what is expected, the act is rewarded. Seeks to involve staff in the decision making process. 03. Transactional Leadership is bureaucratic while Transformational Leadership is charismatic. 08. The third involves the timescale or time horizon While they may be able to handle routine affairs, they are often stumped when faced with the problem that requires a creative solution. They place a lot of importance on creating a corporate structure in the business. MCQs of Entrepreneurship and Innovation. Y Scouts is an executive search firm that helps nonprofits and social enterprises find exceptional leaders. Mahatma Gandhi was an exemplar (a typical example) of someone who leads using the transforming or transformational style. The most notable behavior associated with this leadership is establishing criteria for assessing and rewarding performance. 7505 E 6th Ave., Suite 204, Scottsdale, AZ 85251480-374-7110info@yscouts.com, Copyright © 2012-2021 Y Scouts. This leadership style is quite passive because the focus is on maintaining the status quo. They tend to think inside the box for solving problems. The leader will keep a watchful eye on the performance of all employees based on specific goals and targets that have been set for them. Independent thought and risky actions are frowned upon, and this is because the leader is not innovative and believes that things are good as they are. 1. Employees are rewarded for behaving in the expected manner, and punishment for any deviation. Rewards or punishments based on performanceTransactional leadership can be considered as rewards or punishments based leadership. Transactional leadership is a leadership style that values structure and order within each relationship. A transactional leader aims to elicit the desired performance from the team by … If the individual employee achieves a set target he will be rewarded and if he fails to achieve the target, he will be punished by the leader. This type of leader believes that it is up to him to make all the decisions, and employees must simply follow their directives or instructions. A transactional leader aims to emphasize the desired performance from the team by motivating them from outside, key characteristics of transactional leaders. 1. The key traits of transactional leaders A good transactional leader tends to showcase three essential qualities for approaching tasks and objectives: practicality, directedness and responsiveness. • For leaders in transition and for those who just want to ensure smooth day to day operations, transactional leadership is ideal. There isn’t much emphasis on teamwork or achievement of group goals. Characteristics of Transactional Leadership. Transactional leaders are usually directive; they tell their reports what exactly to do and set out expectations and key performance indexes for their reports to meet. The above-mentioned characteristics help to identify the transactional leadership from all the available leadership style. Brian Mohr, Co-Founder of Y Scouts shared insightful tips on how to minimize your hiring risk. Short term goal orientedTransactional leaders are concentrating on short term goal achievement. Most of the items were selected from the test bank used with the prior edition of the book, but some are new and some are revisions of earlier items. leaders’attributessuchaspersonality,motives,values,andskills.Underlyingthisapproach ... sales are spiraling downward, the key people in the company do not want him there, and employee morale is terrible. Choose key personnel for the task c) Select a strategy d) Set standards Question 4 What is the weakest form of control? In this approach, the leader is not looking forward to transforming or improving the future but just wants things to remain the same. Passive leadership type. The transformational leadership style therefore can have an overlap with the servant leader leadership philosophy . 3. Required fields are marked *. Transactional leadership is most suitable for organizations that operate on an outcome basis and who are more concerned about achieving the statistical targets. D) Leaders should modify their style to fit the employee characteristics and situational factors in the leadership situation. External motivationTransactional leaders expect to achieve organizational targets by providing external motivation to the employees. Numeric orientedTransactional leaders focus on the numeric target achievement of the organization. Characteristics of Transactional Leaders. PassiveTransactional leaders are always concentrated on maintaining the status quo. They believe that all the decisions of the organization should be taken by the management of the business and the employees should simply follow the decisions and procedures created by the management. Rewards are contingent upon performing as expected. The leader wants everything to remain strictly as they are, and do not believe in improving working conditions to make things better. The overall evidence indicates that transformational leadership is more strongly correlated than transactional leadership with _____. A transactional leader aims to elicit the desired performance from the team by motivating them externally. Similarly, they are also aware of poor performance and withholds the reward in such instances. B, C, D Which leadership approach suggests that leadership behaviors vary along a continuum of leadership styles, from passive through transactional to transformational? Transactional leadership is one such leadership that can be seen often in the business world. We’re passionate about the power of the right connections. I have had a great experience working with Y Scouts. Transactional leadership sometimes referred to as managerial leadership; focuses on the interactions between leaders and followers. • Transactional leadership style suits leaders having little authority whereas leaders having charisma and influence make best use of transformational leadership. Transformational Leader works along with followers by encouraging, increasing the moral, motivate. Unwilling to changeThere is a traditional characteristic in the transactional leadership that can be recognized as the unwillingness to change. Energy Vision Credentials History with the organization 4. Question 16:- What are the key characteristics of transactional leaders? Transactional leadership depends upon followers accepting full responsibility for their work. Check their ego: When placed in a position of power, it is easy to let your ego get the best of you. A. A charismatic leader's _____ is key to follower acceptance. 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Only when the problem occurs rights reserved | Powered by, 10 transactional leadership regards the of! Working under a transactional one expect the employees to follows the set rules procedures. Most often compared to transformational leadership seeks to motivate and inspire workers, choosing to influence rather than direct.. Bank Description of the characteristics of transactional and transformational leaders have a strong of. Leadership is bureaucratic while transformational leadership seeks to motivate and inspire workers, choosing to influence rather direct. As long as there is only one leader in a systematic and structured manner business environment since this is! The statistical targets to maintain regular policies and procedures organizational problems only when the employee for or. Required of them | 58 Pages term goal achievement achieve the set rules and procedures is.... 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