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      Question

      Which leadership style primarily relies on rewards and

      punishments to ensure performance?
      A Transformational Correct Answer Incorrect Answer
      B Laissez-Faire Correct Answer Incorrect Answer
      C Transactional Correct Answer Incorrect Answer
      D Bureaucratic Correct Answer Incorrect Answer
      E Democratic Correct Answer Incorrect Answer

      Solution

      The Transactional leadership style is characterized by a managerial approach where leaders set clear rules, define responsibilities, and expect compliance. Motivation under this style is driven by a system of contingent rewards and punishments—employees are rewarded when they meet expectations and penalized when they fail to do so. • It is most effective in situations requiring structured execution, adherence to procedures, or during emergencies/crises where quick compliance is essential. • By contrast: o Transformational leaders inspire and motivate followers to exceed expectations through vision and charisma. o Laissez-Faire leaders adopt a hands-off approach. o Bureaucratic leaders focus on strict adherence to rules and hierarchy. o Democratic leaders emphasize participation and group decision-making. Thus, the correct style associated with contingent rewards and punishments is Transactional leadership.

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