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What is the interactive leadership style?

Interactional leadership theory originated by Max Weber in 1947 and later by Bernard Bass in 1981 , it involves motivating and controlling followers inherently through give and take. However, this management style soon emerged during the Industrial Revolution in the 14th century by Rich as a way to encourage competitive advantage. For a while, the purpose of using a transactional management style is to exchange things of value” (Burns, 1978).

In addition, transactional leadership is a management style that focuses on using rewards and punishments to motivate followers to achieve their goals. This leadership style is based on the exchange of rewards and incentives for completing tasks or achieving specific goals, rather than seeking improvement in employees’ talents.

In this leadership style, leaders set clear expectations, provide feedback, and reward followers for achieving specific goals. The transaction leader also monitors progress, identifies problems, and takes corrective action as necessary.

Like other leadership styles, transactional leadership has a range of advantages and disadvantages. Understanding these elements can help leaders find the best techniques for working with employees in different situations.

Benefits of transactional leadership

• Clear expectations : This leadership style provides followers with clear expectations and goals that help them understand their role and what is expected of them.
• Effective : Interactive leaders focus on achieving results and maximizing productivity, making them highly efficient in their approach to leadership.
• Reward performance : This leadership style rewards good performance, which can help motivate followers to work harder and perform better.
• Easy to implement : The transactional leadership style is relatively easy to implement, making it a popular approach in many organizations.
• Maintains control : The transactional leadership style allows the leader to maintain control over the organization, which can be important in certain situations.

Disadvantages of transactional leadership

• Limited creativity : This leadership style can stifle creativity and innovation because it is primarily focused on achieving specific goals rather than discovering new ideas.
• Short-term focus : The transactional leadership style often focuses on short-term goals and objectives, which can lead to a lack of long-term planning and vision.
• Lack of personal development : Focusing on achieving results can lead to a lack of emphasis on personal development and growth for followers.
• Potential for negative reinforcement: Using punishments to correct behavior or performance can create a negative work environment and lead to low morale among followers.
• Inflexibility : The exchange leadership style is very structured and rigid, which can limit flexibility and adaptation to changing conditions.

Characteristics of interactive leadership

There are three approaches to transactional leadership styles below

1. Contingent reward : This approach is based on the exchange of rewards and incentives for achieving certain goals or completing tasks. The leader sets clear expectations and provides feedback, and followers are rewarded for meeting or exceeding expectations. This approach focuses on the link between performance and reward.
2. Management by exception (proactive ): This approach involves closely monitoring performance and taking corrective action when problems occur. The leader proactively identifies potential issues and intervenes to prevent them from escalating. This approach requires that the leader be involved in day-to-day operations and have a clear understanding of the work being done.
3. Management by exception (passive) : This approach includes intervention only when there is a problem or deviation from the norm. The leader does not actively monitor performance, but rather waits for issues to be brought to their attention. This approach is suitable for situations where the work is very routine and predictable and the leader trusts his followers to carry out their tasks without constant supervision.

To become a transactional leader , there are some key characteristics of transactional leaders that you should focus on:

• Goal oriented : transactional leaders focus on achieving specific goals and objectives. They set clear expectations for their followers and reward them for meeting or exceeding those expectations.
• Results oriented : The main focus of transactional leaders is to achieve results. They care less about the personal development of their followers and are more focused on achieving specific results.
• Analytical : Trading leaders are analytical and data driven. They rely on data and information to make decisions and measure progress.
• Reactive : transactional leaders are reactive in their approach to leadership. They respond to problems or deviations from the norm rather than actively looking for potential problems.
• Clear Communication : Transactional leaders are effective communicators who can clearly articulate expectations and provide feedback to their followers.
• Detail-Oriented : Transactional leaders pay close attention to detail and are highly focused on ensuring that tasks are completed correctly.
• Consistent : transactional leaders are consistent in their approach to leadership. They apply the same rules and standards to all followers and show no favoritism.
• Practical: Transactional leaders are practical and focused on achieving tangible results. They are not overly concerned with theoretical or abstract concepts.

What are examples of interactive leadership?

Interactional leadership is commonly found in varying degrees of practice in both business and education, and here are some examples:

Examples of interactive leadership in business

1. McDonald’s : The fast food restaurant chain McDonald’s is often cited as an example of transactional leadership in business. The company uses a highly structured system of rewards and punishments to motivate its employees to achieve specific goals and objectives such as increasing sales and reducing waste.
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   Sales teams: Sales teams in many industries often rely on transactional leadership to motivate their employees. For example, sales managers may use incentives such as bonuses or promotions to reward top performers and motivate others to improve their performance.

3. Call centers : Call centers also often use a transactional leadership style to manage their employees. Call center managers may use performance metrics, such as call volume or customer satisfaction ratings, to evaluate employee performance and provide rewards or punishments accordingly.

Examples of interactive leadership in education

4. Grading systems : Grading systems in schools are a common example of interactive leadership in education. Students are rewarded for meeting certain performance standards, such as getting good grades on tests or assignments, and may be punished for not meeting these standards.

5. Attendance policies : Many schools also use attendance policies to motivate students to attend class and continue their studies. Students who attend class regularly and meet attendance requirements may be rewarded with better grades or other incentives, while those who miss too much class may be punished with lower grades or other consequences.

6. Sports teams : Sports teams in schools also often use an interactive leadership style. Coaches may use rewards such as playing time or recognition to motivate athletes who perform well, and may use punishments such as benching or disciplinary action to address poor performance or behavior.

Who are the famous deal leaders?

Steve Jobs

Steve Jobs is a legendary figure in the business world, known for his innovative leadership style at Apple. He was a visionary who was able to inspire and motivate his team to create groundbreaking products that revolutionized the technology industry.

Prior to using his transformational leadership style, he was known for his “reality distortion field,” where he motivated his team to accomplish seemingly impossible tasks. He also used bonuses and stock options to reward top performers, while those who failed to meet his expectations were often fired or demoted.

Donald Trump

One of the most famous business leaders in the world is the former President of the United States, Donald Trump.

Trump is known for his management style of setting specific goals, setting clear expectations for his team, and using rewards and punishments to motivate his employees.

During his presidency, Trump repeatedly praised and rewarded those he felt were loyal to him and met his expectations, while simultaneously dismissing those he felt were disloyal or substandard. He did not act, criticized and punished. He also placed great emphasis on achieving specific policy goals, such as building a wall along the US-Mexico border, and was willing to use a range of tactics, including executive orders and negotiations with foreign leaders, to achieve these goals.

bottom line

Many leaders today probably go with a transformational leadership style, but when it comes to achieving short-term goals and day-to-day tasks, a transactional style can be preferable. More flexibility in leadership and management can give leaders multiple perspectives to find the best decision in different situations.

If you’re looking for a new way to give points and punishments without losing team spirit and fairness, don’t forget to design team building and meetings in a funnier way. You should look for the support of online presentations like AhaSlides to make your activities more exciting and attractive.