What type of leadership influences followers by focusing on exchanges and rewards?

Transactional leadership is characterized by its focus on exchanges and rewards between leaders and followers. This type of leadership operates on a system of give-and-take where the leader provides clear expectations and rewards for meeting those expectations. For instance, if a team member successfully completes a task or reaches a specific goal, they might receive praise, promotions, or bonuses as a result.

This leadership style is effective in structured environments where tasks are clearly defined, as it reinforces the behavior that leads to desired outcomes through positive reinforcement. It can help motivate individuals to achieve short-term goals and can be particularly effective in situations where tasks are routine and outcomes are predictable.

Transformational leadership, on the other hand, aims to inspire and motivate followers to exceed their own self-interests for the sake of the organization or a greater cause, which differs from the transactional approach focused on immediate exchanges. Autocratic leadership emphasizes centralized decision-making with little input from subordinates, while democratic leadership encourages collaboration and input from team members. Each of these styles serves different purposes and outcomes in a leadership context, but the essence of transactional leadership lies in the exchange relationship it builds to motivate followers.