Transactional leadership relies on rewards and punishments to achieve performance.

• A. Leader-member exchange model
• B. Servant leadership
• C. Transactional leadership
• D. Transformational leadership

Answer: (C)

Transactional leadership centers on using rewards and punishments to manage performance. It operates on an exchange: when followers meet clearly defined expectations, they receive rewards; when they fall short, they face penalties or corrective actions. This makes it the best fit for statements that describe motivation through contingent reinforcement aimed at achieving measurable results, especially in routine or structured tasks.

In contrast, leader-member exchange focuses on the quality of the relationship itself and how leaders treat different followers as in-group or out-group, not primarily about rewards and punishments. Servant leadership emphasizes serving followers' needs, empowerment, and ethical behavior rather than controlling performance through rewards. Transformational leadership centers on inspiring a shared vision, motivating beyond self-interest, and stimulating followers to exceed expectations, which goes beyond simple transactional exchanges.