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The transactional model of leadership is characterized by a system of rewards and punishments to influence followers' behaviors and performance. This approach focuses on the exchange relationship between leaders and followers, where leaders provide clear expectations and resources, while followers agree to meet those expectations in exchange for rewards such as incentives or recognition. If followers fail to meet these expectations, they may face consequences, which could include loss of privileges or other forms of punishment.
This model contrasts with other leadership styles that prioritize inspiration, innovation, or the inherent qualities of individual leaders, like the visionary model or leadership trait theory. In the transactional model, the emphasis is on maintaining the status quo and achieving short-term goals through structured interactions, making it a practical choice in many organizational environments.