The transactional leader is one that believes in supervision, organization and
increasing the efficiency of established routines and procedures.
Also referred to as bureaucratic leadership, this leader is focused on employee
compliance through reward and punishment. Their team must earn the leaders
respect and favor, and the leader is often seeking out any of those that deviate
from the rules or the plan. They are not looking to change the future but
maintain the status quo, so are not flexible or creative but rather following the
A transactional leader is ideal in operational and highly consistent roles, such
as retail banking, civil service, or competitive coaching, e.g. athletics.