Which is a core characteristic of transactional leadership?

• A. Extrinsic motivation
• B. Practicality
• C. Resistance to change
• D. Discourages independent thinking

Answer: (A)

Transactional leadership relies on motivation that comes from external rewards and penalties. The leader sets clear expectations, monitors performance, and provides rewards when goals are met and corrective actions when they aren’t. This contingent exchange—do the task and you’ll get a bonus or avoided penalty—defines how followers are motivated in this style, making extrinsic motivation the central feature.

Practicality and a focus on efficiency can be part of how such leaders operate, but they aren’t what uniquely characterize the approach. Resistance to change isn’t a defining trait of transactional leadership; it’s not about embracing or resisting change so much as ensuring tasks are completed to standard. Discouraging independent thinking can occur in various control-focused styles, but it isn’t the hallmark of transactional leadership, which centers on the exchange-based system of rewards and penalties for performance.