Discussion of Transactional Leadership Style

Subject: Leadership Styles
Pages: 1
Words: 298
Reading time:
2 min
Study level: Bachelor

Under the current employment setting, the majority of leadership figures utilize various forms of transactional leadership style, where transformational leadership style is rare and even non-existent. My leader strictly uses a transactional approach due to the organization’s low-risk tolerance since evidence strongly suggests that “any environmental effects on leadership style are further mediated by external risks and organizational (internal) risk appetite.

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For instance, military operations take place in highly dynamic environments, yet, due to a relatively low-risk appetite (as human lives are at stake), they may be dominated by transactional leadership approaches” (Baškarada et al., 2017, p. 509). In other words, in general, the organizational environment and external influences dictate whether or not a specific leadership approach will be effective. One can argue that organizations with more relaxed environments with a high degree of risk tolerance, such as IT companies, might benefit from transformational leadership more than the alternative. Therefore, the transactional leadership style is more reluctant for risks, which is why directions are more robust and precise, with little room for follower transformation through connection and communication.

I would want to be a flexible leader to alternative between transformational and transactional styles depending on the circumstances. In other words, it is called ambidextrous leadership, which “involves either concurrent focus on exploration as well as exploitation or the ability to seamlessly switch between the two approaches” (Baškarada et al., 2017, p. 510). Such an approach will not only ensure stability and low-risk tolerance within my work setting but also enable some room for creativity and positive change among my followers. Therefore, under highly stressful conditions, I will aim to be directive and precise with my requests, whereas, under calmer and more relaxed periods, I will try to connect with my followers to bring transformative changes to their lives.


Baškarada, S., Watson, J., & Cromarty, J. (2017). Balancing transactional and transformational leadership. International Journal of Organizational Analysis, 25(3), 506–515. Web.