Juhtimisstiil, milles juhid edendavad alluvate järgimist nii autasude kui ka karistuste kaudu. Preemiate ja karistuste andmise süsteemi kaudu suudavad juhid hoida järgijaid lühiajaliselt motiveeritud olukordades, kus stabiilsuse tagamiseks on seda vaja., A style of leadership in which leaders promote compliance by followers through both rewards and punishments. Through a rewards and punishments system, transactional leaders are able to keep followers motivated for the short-term. This kind of leadership that is needed for stability. Success (achieving current excellent performance standards) necessitates transactional leadership and a transactional leader identifies what followers want or prefer and helps them achieve level of performance that results in rewards that satisfy them.