Question : Which leadership style focuses on rewarding or punishing employees based on their performance?
Option 1: Transformational leadership
Option 2: Transactional leadership
Option 3: Democratic leadership
Option 4: Laissez-faire leadership
Correct Answer:
Transactional leadership
Solution : The correct answer is (b) Transactional leadership.
Transactional leadership is a style of leadership that emphasizes a transactional relationship between the leader and the followers. In this leadership style, the leader establishes clear expectations and sets up systems of rewards and punishments to motivate and influence employee behavior.
Transactional leaders typically use contingent rewards, such as bonuses, promotions, or other incentives, to recognize and reinforce desired performance. They establish performance standards, provide feedback, and hold employees accountable for meeting those standards. When employees meet or exceed expectations, they are rewarded. On the other hand, when employees fail to meet expectations, there may be consequences or punishments.
