Question
Which leadership style primarily relies on rewards and
punishments to ensure performance?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 punishmentsâemployees 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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