Principles of Management CLEP Practice Exam

What defines transactional leadership?

1. Focus on long-term vision and personal influence

2. Leadership based on an exchange process between leaders and followers

3. Creating an exceptionally strong relationship with followers

4. Emphasizing equal treatment and mutual respect among team members

The correct answer is: Leadership based on an exchange process between leaders and followers

Transactional leadership is defined by its emphasis on an exchange process between leaders and followers. This leadership style is grounded in the concept that followers are motivated by rewards and punishments. Leaders who practice transactional leadership establish clear objectives and expectations, and they use rewards to reinforce meeting those expectations, or disciplinary measures when they are not achieved. This approach is primarily focused on maintaining the normal flow of operations and ensuring that tasks are completed efficiently. The relationship is largely utilitarian, with an understanding that followers are motivated primarily by the benefits they receive in return for their effort. Transactional leaders do not typically engage in deep emotional connections with their followers. Instead, they emphasize the practical aspects of the leader-follower relationship, including performance and productivity. The other options describe different leadership styles or elements that do not align with the transactional model. For instance, a focus on long-term vision and personal influence aligns more with transformational leadership, where leaders inspire change and motivate followers to develop their own potential. Creating exceptionally strong relationships with followers is characteristic of servant or transformational leadership approaches, which prioritize interpersonal connections and emotional investment. Lastly, the emphasis on equal treatment and mutual respect is more in line with democratic or participative leadership styles, which foster collaboration and shared decision-making.