The Advantages: Strengths of Transactional Leadership
1. A Simplified Approach to Leadership: Simplicity is a critical advantage of transactional leadership. This model is considerably straightforward because it focuses on a direct exchange process in which the transactional leader provides the rewards while the followers perform the expected tasks in exchange.
2. Focuses on the Basic Needs of Humans: A transactional leader manages performances and motivates followers by satisfying their basic needs to include hierarchy include physiological needs such as food and shelter, as well as safety needs such as personal security, health and wellbeing, and financial security.
3. Appropriate for Specific Leadership Situations: It is effective in increasing the efficiency of conventional procedures, handling new chaotic organizations, and establishing and standardizing practices, processes, and behaviors. For existing organizations, the focus of the transactional style of leadership is to keep things the same.
The Disadvantages: Weaknesses of Transactional Leadership
1. Not Suitable for Certain Individuals: There are individuals who cannot be motivated by meeting their basic needs alone. Once individuals have reached the basic levels of needs such as physiological and safety needs, they naturally pursue more advanced levels such as belongingness, esteem, and self-actualization.
2. Inflexible for Some Leadership Situations: A transactional approach to leadership is not suitable for situations that require strong collaborations among individuals. The straightforward exchange process utilized in this approach is not appropriate in organizations that require a complicated chain-of-command and more than one reporting line.
3. Promotes the Disadvantages of Authoritarian Leadership: These drawbacks include the inability to make the best decision because of lack of insights and inputs from different sources, the lack of feedback mechanism needed to make corrective changes, elimination of innovation, and too much dependence on the transactional leader.