Under the leadership style is understood to be a set of all methods, techniques, actions used by the leader in his work. The individuality of styles is demonstrated primarily in communication between director and staff and is closely related to the category of leadership in management. That is the ability of the leader to influence individuals or groups of people, encouraging them to achieve goals. Sometimes an organization requires a specific leadership style, so administrators often change their style to suit the needs of the company. I observed the transaction management technique, which encourages employees to work and increases the efficiency of firms.
A leadership style in which goals are predetermined and the director uses reward and punishment to motivate members is known as transactional control. In this style of administration, the leader uses his authority and responsibility as a power, and the method has a formal approach. Premium and penalties are the two main tools that a leader uses to inspire his subordinates (Steyn, 2020). I understood the main rule if the agent achieves the goal within the set time, he gets the initiative for his work. In contrast, if the task is not completed within the required time, he will be punished for the same. Transactional administration refers to a leadership style that emphasizes the director and subordinates’ agreement. It seemed right to me that it focuses on improving the current situation in the company by forming the next steps and monitoring organizational activities. This type of direction aims to update the existing corporate culture and improve current policies and procedures.
The head of the company that I visited follows the rules to reward success and punish failure. However, they do not catalyze growth and change in the system. Instead, they focus on maintaining and enforcing current commands and expectations. Also, the director tended to set healthy expectations and standards that maximize the efficiency and productivity of the organization. Moreover, he typically provides constructive feedback on follower achievement, letting team members improve their results for better input and bonuses. That is, the effectiveness of transactional leaders can be shown in crises when the primary focus should be on performing various tasks. By entrusting clearly defined responsibilities to specific individuals, managers can be confident that these assignments will be accomplished (Ma & Jiang, 2018). I have observed this high efficiency for employees when there is a system of bonuses and penalties. To be rewarded for the work done, a lot of effort is required, which will eventually lead to the prosperity of the enterprise.
I clearly understood that the advantages of transactional administration include the fact that the leader creates clearly defined job descriptions and roles. Workers understand what they need to prepare and what benefits they have to accomplish predetermined goals. I noticed that managers offer great focus, which gives employees a sense of security. Therefore, team members work efficiently to receive the promised rewards. Large bureaucratic businesses and groups choose the transactional system of government to maintain status. Thus, the disadvantage is that the transactional method does not encourage creativity (Afshari & Gibson, 2016). For the supervisor I watched, the teamwork on tasks was important, not individual decisions of workers.
Therefore, for me, transactional leadership is a management style in which the director uses a system of bonuses and penalties to motivate employees to achieve the goals of the organization. Employees are usually rewarded when they see that they put a lot of effort into achieving the goals set by the manager and are punished for violating the goals and expectations of the director. The effectiveness of this approach is manifested in crisis management, and the disadvantage is the limitation of the creative thinking of agents.
References
Afshari, L., & Gibson, P. (2016). How to increase organizational commitment through transactional leadership. Leadership & Organization Development Journal, 37(4), 507-519.
Ma, X., & Jiang W. (2018). Transformational leadership, transactional leadership, and employee creativity in entrepreneurial firms. The Journal of Applied Behavioral Science, 54(3), 302-324.
Steyn, R. (2020). Leadership styles and organisational structure. International Journal of Human Resource Studies, 10(3), 98116-98116.