The transactional leader also monitors performance of his/her followers and rewards them. The rewards can be monetary but mostly they refer to non-financial rewards like physical ones such as extra holiday, flexible work, time/day off or like nonphysical rewards such as compliments, admiration, visibility and recognition. According to Kirkbride (2006), a transactional leader sets very clear goals for his/her followers and explains the rewards of achieving specified goals either directly or implicitly.
BURNS LEADERSHIP 1978 PDF FILES FULL
Transactional leadership is the fourth step named contingent reward (CR) in Bass’s full range of leadership model. (Bass and Avolio, 1994) The theory of transactional leadership and transformational leadership with its four components, criticisms and arguments against transformational leadership and the outweighing advantages and importance of the transformational leadership are described within that essay with examples and case studies. According to Johnson (2002), it was Max Weber who was the first who started to study leadership discriminatingly and James MacGregor Burns elaborated the differences between ordinary (transactional) leadership and extraordinary (transformational) leadership (Barnett et al., 2001). Bass and Avolio used the concept provided by Burns and developed full range model leadership model which contains components of leadership behaviours from non-leader to transactional leader and from transactional leader to transformational leader. However, the scientific studies have begun in 20th century because of industrial revolutions, rise of the capitalism and polarization of countries.
The famous Greek philosophers Aristotle and Plato wrote about characteristics and requirements of leadership between 400-300 BC. The leadership has been an important topic for historians and philosophers for the thousands years.
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