1. Transactional Leadership theory

2. history
The concept of transactional leadership was first mentioned by Max Weber in his socio-economic considerations of the organization; 1947; He called it Legal-Rational Authority; “the exercise of control on the basis of knowledge;” he said it was the most mature and stable form of authority (compared to Traditional & Charismatic)
James McGregor Burns: Advanced Weber’s theories: Claimed that transformational & transactional leadership are two different styles of leadership. The leader can be transactional or transformational, but can not simultaneously have the characteristics of both.

3. was reintroduced by… Bernard Bass in 1981
In Bass's theory of leadership, transformational & transactional leadership are two different dimensions of leadership, so leaders can simultaneously be both transactional & transformational.
Today, most researchers agree with this.

4. What is it?
The type of leadership that relies on setting clear objectives and organizational goals for followers & using incentives/rewards for achieving them or penalties/punishment for failing to achieve them
This type of leadership focuses on supervision, organization, and group performance

5. Who are they?
They value order, structure, organizational culture, & following the rules
They have modest and short-term goals, as mere managers
Likely to command military operations, manage large corporations, or lead international projects that require rules & regulations to complete objectives on time or move people & supplies in an organized way
Highly directive
Tend to be inflexible & against change
They gain compliance (rather than commitment) from their subordinates/followers through the exchange of tangible rewards for the work
Efficiency is fun!

6. Leadership experts & the public alike extol the virtues of transformational leaders …some transactional leaders were effective in the execution & management of policy
Successful Transactional President:
George H. W. Bush (More effective in his foreign policy execution than his son who was Transformational)
Successful Transactional Business Leader:
Bill Gates (Known for His Transactional leadership while making the Microsoft Empire…clearly it worked for him $)

7. DISADVANTAGES / criticism
Posits that subordinates are not self-motivated & thus have to be closely monitored and controlled in order to complete tasks correctly and on time
Focuses on only the lower level of Maslow’s Hierarchy of Needs by stressing specific task performance and using positive & negative reinforcement (Ross); Posit that employees are only motivated by extrinsic rewards
Bad fit for places where creativity and innovative ideas are valued; inside-the-box
They rule by fear & punishment
Do not coexist with the needs and goals of subordinates; neglect professional and personal growth of employees
Completely neglect their right brain

9. the correct answer is...
Managed the government to eliminate subversion
Punished others for deviating from the rules
Rewarding followers for bringing him accused communist infiltrators