Back in the day, people didn’t necessarily see the difference between being a manager and a leader. Today, this is much less the case. The people in charge are beginning to understand that being in a position of power shouldn’t be all about making sure employees do their jobs, but instead empowering them and motivating them by connecting with them on a deeper level and inspiring them to succeed.

For example, transformational leadership is a style of leadership that focuses on developing and motivating team members. It is very important in helping organizations implement effective change management. Not all leadership styles are created equally though. Transactional leadership is another popular leadership style today, and it has both pros and cons. In this article, we’ll talk about what makes transactional leadership a great leadership style, while still acknowledging its shortcomings.


It Shows Fairness

In most groups, there are accusations of favoritism. Some people feel that they are being treated unfairly, while others feel that they are being rewarded just because they like the manager.

Transactional leadership uses a process known as transactional feedback, which is based on metrics as opposed to the manager’s personal feelings. When managers use the transformational leadership style, they’re able to measure and reward all employees equally.

Anyone Can Understand It

A rewards-and-punishment system is very simple to understand, and it doesn’t require much interpretation. Employees know what they have to do to reach their goals, and they know what consequences they can expect if they don’t.

The structure and order of a rewards-and-punishment system make it very easy for employees to focus on the tasks that they need to complete to receive their rewards. And we all know rewarding people for their efforts can be a great way to motivate someone.

It Shows Employees Their Impact

Being able to see the impact that your goals have on the company is very important to employees. They know that if they reach their goals, it will help them improve their performance and create new revenue opportunities. It can be demoralizing when an employee’s hard work doesn’t make any noticeable difference.