Ms. Caputo learns that some leaders are transactional leaders. Which of the following does not characterize a transactional leader?
A. Focuses on management tasks.
B. Is a caretaker.
C. Uses trade-offs to meet goals.
D. Inspires others with vision.
Correct Answer: D. Inspires others with vision.
Inspires others with a vision is characteristic of a transformational leader. He is focused more on the day-to-day operations of the department/unit. Transactional leadership depends on self-motivated people who work well in a structured, directed environment. By contrast, transformational leadership seeks to motivate and inspire workers, choosing to influence rather than direct others.
Option A: A transactional leader is someone who values order and structure. They are likely to command military operations, manage large corporations, or lead international projects that require rules and regulations to complete objectives on time or move people and supplies in an organized way.
Option B: Transactional leadership focuses on results, conforms to the existing structure of an organization, and measures success according to that organization’s system of rewards and penalties. Transactional leaders have formal authority and positions of responsibility in an organization.
Option C: This type of leader sets the criteria for their workers according to previously defined requirements. Performance reviews are the most common way to judge employee performance. Transactional, or managerial, leaders work best with employees who know their jobs and are motivated by the reward-penalty system. The status quo of an organization is maintained through transactional leadership.