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According to Business Dictionary, transactional leadership is a “style of leadership that is based on the setting of clear objectives and goals for the followers as well as the use of either punishments or rewards in order to encourage compliance with these goals” (WebFinance, Inc., 2018, p. 1). Transactional leadership is task and detail oriented, with an emphasis on short-term success (Bass, 1985; Rafferty & Griffin, 2004; Sosik & Dionne, 1997). The leadership style includes establishing and enforcing rules and guidelines, and enabling the followers to understand their roles, expectations, and responsibilities (Hamstra, Van Yperen, Wisse, & Sassenberg, 2014). Transactional leaders are focused on identifying and correcting followers mistakes to promote vigilance and accuracy of the followers (Bass, 1985; House, 1971; Oke, Munshi, & Walumbwa, 2009). There leaders grant rewards for completing the minimal performance standards, promoting effective completion of tasks by the followers (Jung, 2001). Studies have found that transactional leadership is effective for followers that are prevention-focused and seek out stability and certainty (Hamstra et al., 2014). Studies regarding the effectiveness of transactional leadership and comparisons to other leadership styles and techniques are continuing to be pursued to identify and promote best practices among leaders.

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Transactional leadership describes a person who values order and structure in their life. This type of leadership emphasizes results, conforms to existing structure of a particular organization, and measures success according to a particular organization’s system of reward and penalty. Transactional leaders are more likely to have some type of formal authority, positions of responsibility, and routines. These leaders set criteria for their workers to follow according to previously defined requirements. Transactional leaders are sometimes also known as managerial leaders who work best with employees who know how to do their jobs and are motivated with a reward-penalty system (St. Thomas University, 2018).

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Snodgrass (2011) & Bowyer (2015)

Contingent reward: The leader clarifies others’ role requirements and rewards, and the leader praises desired outcomes.

Active/passive management by exception: The leader establishes criteria for compliance and non-compliance and monitors others’ performance that may deviate from the leader's desired plan. If others' performance is unsatisfactory, the leader uses punishment or corrective action as necessary.

Laissez-faire: Transactional leaders often take a laissez-faire approach, meaning that they are laid-back, they avoid decision-making, and they delay their response to emergent issues.

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Bill Gates was born in Seattle in 1955 and in his early teens, developed computer programs as a hobby. In 1975, he helped start Microsoft and his company grossed $2.5 million when he was 23 years old. As a transactional leader, he would visit new product teams and would ask difficult questions. He would do this until he was sure that the teams were understanding and working toward a common goal (St. Thomas University, 2018).

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Transactional leadership involves leaders and followers, goals, and penalty in order to encourage working toward the goals set by the establishment or group. Individuals in a management position or someone who has a lot of influence over others, such as a coach, often adopt this leadership style. For this leadership to be successful, there has to be transactions or interactions between the leaders and the followers who all work toward a common goal.

“Transactional leadership [was] positively associated with providers' having more positive attitudes toward adoption of evidence-based practice (Aarons, 2006, p. 1162).

Evidence-based practice (EBP) is a significant component of OT. Understanding the positive implications that transactional leadership has for OT will be very important as future practitioners. The positive attitudes that we have toward EBP will help us adopt this type of practice and encourage its implementation during therapeutic activities.

“Transactional leadership focuses on managing incentives and rewards, and meeting quality standards” (Green, Albanese, Cafri, & Aarons, 2014, p. 771).

This applies to OT in a few ways.  The push for higher productivity is significant in the medical setting.  This type of leadership focuses on managing ways to encourage meeting the standards of an organization.  This leadership can also apply to treatment sessions and the assessments that are used.  OTs can implement a rewards system to be used during sessions, which is supported by the Acquisitional frame of reference.

“The contingent reward leadership attribute . . . was found to be a positive predictor of leadership outcomes” (Snodgrass & Shachar, 2008, p. 225).

By adopting the transactional leadership approach, a positive correlation with the leadership outcomes can occur.  Transactional leadership does not occur exclusively, and often transitional and transformational leadership occur concurrently. As master’s level practitioners, there is a likely chance that we may be in a management position in the future.  Adopting this type of leadership can promote better outcomes in the workplace, leading to better therapeutic interactions and increased productivity.

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Druskat (1994)

This research article investigated gender differences in transformational and transactional leadership styles. A total of 6,359 participants completed a questionnaire aimed to calculate the frequency of transformational and transactional leadership behaviors. More subordinate individuals, both male and female, were more likely to be transformational rather than transactional leaders. Female leaders exhibited more transformational leadership overall. The study concluded with results that both male and female subordinates felt more satisfied with transformational leadership rather than transactional leadership.

Martinez-Corcoles & Stephanou (2017)

This journal article analyzed the effectiveness of transactional leadership in safety behaviors of 161 male parachutists in the Armed Forces. Behaviors included safety participation, safety compliance, and risky behaviors. Using a questionnaire, the researchers collected data to assess organizational safety. Transactional leadership was measured on a multi-factorial leadership questionnaire using a 5-point Likert scale indicating how frequently their superior acted in accordance to the statement question. It was found that active transactional leadership predicts several safety performance behaviors through safety climate. When commanders use transactional leadership, they establish a strong safety climate, which increases safety compliance and participation behaviors among parachutists. Additionally, risky behavior was diminished as a result of transactional leadership being used by commanders. Overall, it was identified that transactional leadership use by commanders has been effective in promoting safe behaviors among parachutists in the Armed Forces.

Ma & Jiang (2018)
This study investigated the effects of transformational and transactional leadership styles from 260 Chinese enterprise employees and 113 supervisors of those employees. Participants completed a questionnaire to rank their supervisors' leadership performance, and supervisors ranked their employees' creativity. Results showed that transactional leadership interacted with organizational non-financial rewards, influencing psychological empowerment. Researchers concluded that transactional leadership was positively related to employee creativity, while transformational leadership was not significantly related to employee creativity. The researchers also concluded that the use of rewards is a significant component to enhance transformational and transactional leadership styles.

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Aarons, G. A. (2006). Transformational and transactional leadership: Association with attitudes toward evidence-based practice. Psychiatric Services, 57(8), 1162-1169.

Bass, B. M. (1985). Leadership and performance beyond expectations. New York: Free Press.

Bowyer, P. (2015). Transformational leadership theory and the Model of Human Occupation. In S. B. Dunbar & K. Winston (Eds.), An occupational perspective on leadership: Theoretical and practical dimensions (2nd ed.), pp. 25-34. Thorofare, NJ: Slack.

Druskat, V. U. (1994). Gender and leadership style: Transformational and transactional leadership in the Roman Catholic Church. The Leadership Quarterly, 5(2), 99-119. https://www.sciencedirect.com/science/article/pii/104898439490023X

Green, A. E., Albanese, B. J., Cafri, G., & Aarons, G. A. (2014). Leadership, organizational climate, and working alliance in a children's mental health service system. Community Mental Health Journal, 50(7), 771-7. doi:http://dx.doi.org/10.1007/s10597-013-9668-5

Hamstra, M. R. W., Van Yperen, N. W., Wisse, B., & Sassenberg, K. (2014). On the perceived effectiveness of transformational-transactional leadership: The role of encouraged strategies and followers’ regulatory focus. European Journal of Social Psychology, 44, 643-656. doi:10.1002/ejsp.2027

Heard, C. P.  (2014). Choosing the path of leadership in occupational therapy. The Open Journal of Occupational Therapy,  2(1), 1-18. doi:10.15453/2168-6408.1055

House, R. J. (1971). A path-goal theory of leader effectiveness. Administrative Science Quarterly, 16, 321-338.

Jung, D. I. (2001). Transformational and transactional leadership and their effects on creativity in groups. Creativity Research Journal, 12, 185-195. doi:10.1207 /S15326934CRJ1302_6

Ma, X., & Jiang, W. (2018). Transformational leadership, transactional leadership, and employee creativity in entrepreneurial firms. The Journal of Applied Behavioral Science, 54(3), 302-324. doi:10.1177/0021886318764346

Martinez-Corcoles, M. & Stephanou, K. (2017). Linking active transactional leadership and safety performance in military operations. Safety Science, 96, 93-101. http://dx.doi.org/10.1016/j.ssci.2017.03.013

Oke, A., Munshi, N., & Walumbwa, F. O. (2009). The inﬂuence of leadership on innovation processes and activities. Organizational Dynamics, 38, 64-72.

doi:10.1016/j.orgdyn.2008.10.005

Rafferty, A. E., & Grifﬁn, M. A. (2004). Dimensions of transformational leadership: Conceptual and empirical extensions. The Leadership Quarterly, 15, 329-354.

doi:10.1016/j.leaqua.2004.02.009

Snodgrass, J. (2011). Leadership development. In K. Jacobs & G. L. McCormack (Eds.), The occupational therapy manager (5th ed.), pp. 265-279. Bethesda, MD: AOTA Press.

Snodgrass, J., & Shachar, M. (2008). Faculty perceptions of occupational therapy program directors’ leadership styles and outcomes of leadership. Journal of Allied Health, 37(4), 225-235.

Sosik, J. J., & Dionne, S. D. (1997). Leadership styles and Deming’s behavior factors. Journal of

Business and Psychology, 11, 447-462. doi:10.1007/BF02195891

St. Thomas University. (2018). What is transactional leadership? How structure leads to results. Retrieved from https://online.stu.edu/articles/education/what-is-transactional-leadership.aspx#definition

UK Essays. (2013). Leadership strategies in Remember the Titans. Retrieved from https://www.ukessays.com/essays/leadership/leadership-strategies-remember-titans-1729.php?vref=1

WebFinance, Inc. (2018). Transactional leadership. Retrieved from http://www.businessdictionary.com/definition/transactional-leadership.html

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Russ Rose has the most wins and highest winning percentage among all coaches in Penn State history.  He coaches in a demanding, yet goal-orientated way.  He requires all players to “buy in” to the program, while pushing to achieve the same common goal of winning a national championship.  Russ Rose also implements punishments and penalty for not achieving the goals that have been set for the team, but they are used as a way to reinforce the drive and desire to achieve the highest level of performance.

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Coach Herman Boone - Remember the Titans

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Coach Herman Boone - Remember the Titans

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Coach Herman Boone from the movie “Remember the Titans” is a good model of a transactional leadership. He was a strong leader who had a vision of how to coach his team to a successful season. He showed transactional leadership when he punished his players if they were not doing the correct things. He knew the players loved football and he could use this team to win games (UK Essays, 2013).

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Michael Scott is not a good example of transactional leadership. He does not create a good working relationship with his employees and he does not allow for everyone to work toward a common goal.  He punishes his employees for nonsense things, and he does not take on the leadership role in a positive way.