transactional theory of leadership
- transactional theory of leadership
Gen Mgt
the idea that effective leadership is based on a reciprocal exchange between leaders and followers. Transactional leadership involves giving employees something in return for their compliance and acceptance of authority, usually in the form of incentives such as pay raises or an increase in status. The theory was propounded by James MacGregor Burns, and is closely linked with his transformational theory of leadership, which involves moral, rather than tangible, rewards for compliance.
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