Transactional leadership styles are also based on an exchange process, as are all relationships. But one in which the leader provides rewards in return for the subordinate's effort and performance. Pay incentives are one example of such rewards. In contrast to the transformational leader the transactional leader casts the employee-supervisory relationship within an economic relationship. Now, lets get the job done.
Employees are means to accomplish goals rather than people to be developed and nurtured.
The transformational leader inspires while the transactional leader quotes rules and outcomes. Of course most supervisors do not clearly adopt one or the other style. Some of the best leaders utilize both styles. Check your Fairness Quotient Any organization that wishes to excel must make sure that the employee employer relationship is cast outside the economic relationship and that fairness and justice regarding all basic issues is in place and that supervisors are inspiring employees toward goals. The important ones center on pay, diversity, and etc.