Transactional leadership behaviour involves contingent reward behaviour and management by exception.

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Transactional leadership focuses on the exchange that occurs between leaders and their followers. Leaders using this style reward or discipline their followers based on the performance of the followers, which involves contingent reward behavior (rewarding followers for achieving agreed-upon objectives) and management by exception (intervening only when standards are not met or when the performance is not as expected).

Transactional Leadership Behaviour Involves Contingent Reward Behaviour and Management by Exception