Which leadership style is described as focusing on clear structure and rewards to motivate performance?

• A. Transformational leadership
• B. Transactional leadership
• C. Autocratic leadership
• D. Democratic leadership

Answer: (B)

The main idea being tested is leadership that uses clear structure and rewards to drive performance. In this approach, the leader sets explicit tasks and standards, closely monitors results, and uses contingent rewards or penalties to guide behavior. This creates predictable expectations and motivates people through incentives for meeting targets or consequences for underperforming, making it effective for routine, short-term goals.

This approach is known for emphasizing extrinsic motivation and concrete supervision, rather than inspiring followers or transforming their values. It differs from leadership that seeks to elevate motivation through vision and personal development, from leadership that centralizes decision-making with little input, and from leadership that relies on participation and consensus to guide actions. A practical picture is a supervisor outlining specific sales targets and offering bonuses for achievement, with clear performance criteria and feedback tied to those targets.