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Which of the following leadership styles focuses on rewarding employees for goals achievement?

  • (i) Autocratic Leadership
  • (ii) Coercive Leadership
  • (iii) Laissez-faire Leadership
  • (iv) Transactional Leadership
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Answer: (iv) Transactional Leadership

Justification:

  • Transactional Leadership (Burns, Bass): Based on exchange process - leader clarifies goals, sets standards and rewards/contingent reinforcement for achievement, punishes for failure. Focus on contingent reward and management by exception.
  • Why not others:
    • (i) Autocratic - Centralizes power, orders without participation
    • (ii) Coercive - Relies on threats/punishment, fear
    • (iii) Laissez-faire - Hands-off, abdicates responsibility, gives full freedom

Example: "Achieve 100% sales target → get bonus and promotion" - classic transactional.

Contrast: Transformational inspires with vision/charisma; Transactional trades reward for performance.

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