Transactional Leadership uses rewards and punishments and other forms of authoritative power to encourage desired behaviors from subordinates.

• A. Uses rewards & punishments & other forms of authoritative power to encourage desired behaviors from subordinates.
• B. Focuses on articulating a compelling vision to inspire subordinates.
• C. Promotes shared decision-making and empowerment.
• D. Emphasizes strict adherence to rules with no incentives.

Answer: (A)

Transactional leadership centers on managing by exchange: subordinates perform in order to receive rewards, and they may face punishments or corrective actions for not meeting standards. This approach relies on authoritative power, clear expectations, and contingent reinforcement to shape behavior, making motivation largely extrinsic and performance-based. The statement captures this by describing the use of rewards, punishments, and formal authority to encourage desired behaviors. In contrast, articulating a compelling vision is characteristic of transformational leadership, which aims to inspire and elevate followers’ goals rather than trade effort for rewards. Shared decision-making and empowerment align with participative or empowerment styles that emphasize involvement and intrinsic motivation. Emphasizing strict rule-following with no incentives describes a more rigid, bureaucratic control that lacks the incentive-based exchange central to transactional leadership.