Transactional leadership is a leadership style that emphasizes the exchange of skills, knowledge, resources, or efforts between leaders and their subordinates. Also known as managerial leadership, transactional leadership is an approach where leaders rely on rewarding and disciplining their employees to achieve better results. Many entrepreneurs and top-level management individuals believe that this leadership style can help organisations accomplish their predetermined goals and objectives.
There are multiple leadership styles, but many leaders prefer to make the best use of this one. As a result, the majority of them generally don’t fit well in environments where creativity and innovation are required. The business world has changed drastically in recent years, and businesses have understood the importance of agile and flexible workspaces in India to elevate employee morale and productivity.
Considering the shift in the commercial real estate segment and the way businesses operate, managed and flexible office space have emerged as a prime choice for new-age businesses to foster innovation, engagement, and flexibility. With a decentralized approach, managed offices have become a big business solution for enterprises seeking expansion and employee well-being at the same time. Moving further in this blog, we will examine the advantages and challenges of Transactional Leadership in 2024.
Benefits of Transactional Leadership
As we said, transactional leadership plays a significant role in the success of different business verticals. The roots of this leadership style come from a study conducted in 1947 by a renowned German sociologist, Max Weber. Soon, its impact was visible as companies started focusing on structured procedures and rewards to motivate their workforce.
1. Efficiency in Achieving Goals:
The hallmark of transactional leadership is focusing on setting and achieving specific objectives. This goal-oriented approach has helped companies to successfully pull off short-term objectives and meet performance targets.
2. Clear Expectations:
Setting and communicating expectations and providing specific guidelines to the team members are prominent characteristics of transactional leaders. This clarity helps in reducing ambiguity and ensures everyone understands their roles and responsibilities and works accordingly to achieve them.
3. Structured Work Environments:
Well-defined structures and processes are still the major factors that maintain certain standards within the organization. This structure not only contributes to a stable and predictable work environment but also promotes a sense of professionalism among the employees.
4. Performance-Based Rewards:
Transactional leaders have been using rewards and recognition to motivate their employees. Rewards, such as bonuses or promotions, create a competitive and achievement-oriented workplace where underperforming individuals can elevate their game and succeed in some style.
5. Swift Decision-Making:
Transactional leaders are often quick decision-makers as they follow a set of established procedures and rules. This is often beneficial in situations that require immediate responses or in industries with rapidly changing conditions.
Challenges of Transactional Leadership Style in 2024
Lately, work and workspaces in India have experienced a significant transformation. The traditional methods of operating are now fairly dominated by advanced workplace solutions. There are multiple factors that are denying the prominence of transactional leadership style in 2024. Some of them are:
1. Inflexibility:
This leadership style has been long focused on maintaining the status quo, not on change. Today, employees are more vocal about their needs and preferences. Occasional monetary rewards are no longer enough to satisfy and motivate employees. Flexibility and engagement at the workplace are what employees are thriving for. Companies have realized this trend and are now modifying their policies and shifting from traditional to fully functional managed office space that fosters flexibility and engagement.
2. Lack of Innovation
The rigid structures and established procedures may sometimes discourage creative thinking and limit employees’ willingness to explore unconventional ideas. In today’s dynamic business landscape, where innovation is a key driver of success, organizations increasingly recognize the need to overcome this challenge. One solution gaining prominence is the transition from traditional, hierarchically structured work environments to flexible workspaces. By fostering collaborative and open settings, these workspaces encourage spontaneous interactions, cross-functional collaborations, and a more fluid exchange of ideas.
3. Demotivation
When employees are not encouraged to take the initiative, and their inputs are not embraced, they can feel demotivated to work hard. Companies in 2024 cannot afford to operate with a team of demotivated individuals, and hence, they constantly look for innovative ideas to implement at their workplace. Well, it won’t be hoaxed to say that managed and flexible workspaces provide a one-stop solution for businesses looking forward to expansion and providing an ideal environment for their workforce to make them feel important and motivated.
In retrospect, transactional leadership undeniably played a pivotal role in the success of businesses in the past. However, the contemporary commercial landscape has ushered in a transformative shift, prompting businesses to reevaluate their leadership approaches. The evolving workplace sector now places a premium on motivating the workforce through not only clear expectations and structured processes but also by fostering efficiency through cutting-edge amenities, IoT-enabled workspaces, and a standardized workplace experience. Embracing this paradigm shift allows organizations to cultivate a dynamic and innovative work culture that aligns with the demands of today’s competitive and rapidly changing business environment.
Smartworks is one such platform that acts as a one-stop solution for all space-related needs. Being the largest platform for managed and flexible workspaces in India, Smartworks caters to the diverse needs of businesses with state-of-the-art amenities, cutting-edge tech solutions, offices in prime locations, cost-effectiveness, and standardized experience in 14 cities and 40+ locations.
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