Which leadership model relies on rewards and punishments to achieve optimal job performance?

• A. Transformational
• B. Transactional
• C. Servant
• D. Autocratic

Answer: (B)

Think about how a leader motivates people with a clear system of rewards for meeting targets and consequences for not meeting them. This approach is transactional leadership. It creates a straightforward exchange: perform well and earn rewards; fall short and face penalties. It works best for routine, well-defined tasks where outcomes can be measured and quick, efficient results are needed. It’s different from transformational leadership, which aims to inspire and develop followers; from servant leadership, which centers on serving the team’s needs; and from autocratic leadership, which emphasizes centralized control and directive decision-making rather than a formal rewards-and-punishments framework.