Transactional Leadership Style

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Transactional Leadership Style Tameika Campbell Walden University Transactional Leadership Style Some leaders can easily influence followers to achieve goals based on their leadership style. Lussier and Achua (2016) define leadership style as behavior that characterizes a leader based on a combination of traits and skills leaders use as they interact with followers. I interviewed a seasoned business owner and examined his organization. The evaluation of the business owner proved that he is a transactional leader based on his displayed leadership style characteristics and the health of the organization. Evaluation of Leadership Style I interviewed a long-term leader who has owned several businesses. He has been a leader in his current…show more content…
His reasons for wanting to exit the company include the franchise structure, low profitability, and inconsistent employees. The leader pays 19% in royalties to the franchisor which has affected his profitability since his customer retention has decreased. The cost of running the business has also increased, consequently this increase has caused the leader to have to borrow financing from the franchisor at a 12% interest rate. Before the leader receives income from sales, the money borrowed from the franchisor has to be paid back which stifles the leader’s cash flow and puts him in the cycle of continued financing from the franchisor. Along with low cash flow, the leader expressed that his employees are not consistent. His employees miss work often, do not show up during the busy times of the day, and make simple mistakes. All of the issues that the leader is experiencing within the organization has changed his view of the business and he is ready to place the company for sale after the current tax season…show more content…
The leader interview demonstrated a transactional leader that uses a bonus as an attempt to motivate his employees to reach the organizations’ tax return goal. According to Vroom and Jago (2007), leadership is not only influencing others, but changing in a way that allows the organization to achieve its goals. For the leader to turn things around in his organization his behavior must change. Instead of making all the decisions for the organization and closely supervising the employees, he must move to a leader that encourages participation in decisions with his employees, work with employees to determine what strategies are needed to improve the organization, and trust that they are capable of completing their job (Lussier & Achua,

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