We can say that a transactional leader is someone
who values order and structure.
For example, a general commanding military operations
in order to move people and supplies in an organized way.
But this kind of leadership does not fit very well in creative environments
where innovation and creativity should be nourished.
This kind of leadership depends on self-motivated people
who work well in a structured and directed environment.
Because it is focused on results.
A transactional leader measures success
according to a system of rewards and penalties.
We can see two types of transactional management.
First, what we have already defined as managing by exception.
This is the best practice method recommended
by the project management method PRINCE 2.
When we speak of passive management by exception,
we are speaking of a kind of leadership
which only brings issues to attention of the leader
when there are huge deviations, mistakes or errors.
When this happens, the leader will take corrective actions.
On the other hand, an active manager is actively monitoring
deviances from standards, mistakes and errors,
and taking corrective actions when necessary.
Also, we have the contingent reward,
which is an agreement with the follower in the assignment
or obtainment of rewards
in exchange for satisfactorily carrying out the assignment.