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A transactional leader is the one who does deals with people in order to get them to do things the leader wants.

Transactional leadership, also known as managerial leadership, is a leadership style where leaders rely on rewards and punishments to achieve optimal job performance from their subordinates.

The transactional executive leadership model is based on an exchange or transaction. The leader rewards workers who perform their tasks to the specified levels and punishes workers who do not perform to those set standards.

This relationship between leader and subordinates is based on theories that assume individuals are not self-motivated and need structure, instruction and supervision to accomplish their jobs. The theory also postulates that workers will perform their tasks as the transactional leader wants them to do in exchange for the leader's offering something the workers want, such as pay.

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