Transactional Leadership : A transactional leader focuses more on series of transactions with his subordinates and instills a sense of duty among them with rewards and punishments (carrot and stick policy). It focuses on basic management processes of controlling, organizing and short-term planning. He works within the framework of organization goals. The power of this leadership style comes from their formal authority and responsibility in the organization. These leaders believe that their followers must obey their instructions. They do not believe in creativity and generation of new ideas by their followers. They tend to be highly directive and action-oriented.

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