to meet subordinates' current material and psychic needs, in return for contracted services rendered by the subordinates" (Yukl, 1994, p. 14). Transactional leaders motivate subordinates through the application of two concepts รน contingent reward and management-by-exception. Contingent reward is a process in which the leader contracts with the subordinate by providing rewards for a mutually agreed upon effort. The leader and subordinate agree upon what the follower behaviors are that either deserve reward or avoid punishment. Subordinates have a clear understanding of what the leader expects of them. When the management-by-exception is applied, the leader intervenes in the activities of subordinates only when a subordinate fails to meet specified standards or when something unexpectedly goes awry. Management-by-exception can be either active, e.g., watching and searching for deviations from rules and standards to take corrective action, or passive, e.g., intervening only if standards are not met (Howell & Costley, 2000).
Several organizational concepts are relevant to leadership in educational environments, especially in relation to both transformational and transactional leadership styles. The relevant organizational concepts reviewed are (1) organizational culture, (2) empowerment, (3) the application of power, and (4) team-based organization.
Organizational Culture. An important organizational concept (one which influences the functioning of other organizational concepts) is organizational culture. Culture is a concept borrowed from anthropology and increasingly used in the study of organizations. An organizational culture is the environment of beliefs, customs, knowledge, practices, and the conventional behavior of a particular social group. Every organization, every corporation has its distinct character. Organizational culture is important because it unites individuals with a purpose under a set of principles a...