deration includes providing support, encouragement, and developmental experiences for followers.
Transactional leaders motivate followers through the application of two conceptsùcontingent reward and leadership-by-exception. Contingent reward is a process in which the leader contracts with the followers by providing rewards for a mutually agreed upon effort. The leader and follower agree upon what the follower needs to do to be rewarded or to avoid punishment. Followers are given a clear understanding of what is expected of them. When the leadership-by-exception is applied, the leader intervenes in the activities of followers only if specified standards are not met or when something unexpectedly goes awry. Leadership-by-exception can be either active (watching and searching for deviations from rules and standards to take corrective action) or passive, intervening only if standards are not met (Hatter and Bass 695).
Bernard Bass (3) contended that the transactional-transformational model is a new paradigm, neither replacing nor explained by other models of leadership. Other writers describe concepts similar to transformational leadership as charismatic, inspirational, or visionary leadership. There are more similarities than differences among these several conceptions of leadership.
One argument with respect to transactional leadership is that this leadership style involves an exchange between leader and followers. Followers receive specific valued outcomes when they act according to their leader's wishes (Burns 78. Thus, transactional leadership frequently is conceptualized as a cost-benefit exchange process. Transactional leadership theories are based on the concept that leader-follower relations are based on a series of exchanges or implicit bargains between leaders and followers.
Where the transactional leader motivates followers to perform as expected, the transformational leader inspires followers to do more...