Transactional

Karen McGinnis
Jul 6, 2021
4 min read

Transactional

Are you? What if you are? So, what?

If it works for you, what is the big deal?

This is the reaction and opinion of many. But the definition of transactional can be both good and bad! Like many things in life, love and politics, surface opinions may not dive deep enough. Nuances are necessary.

Transactional events relate primarily to business and secondarily to the interactions between people.

This leads to situations in which the “interaction” between people means treating the relationship as a business deal. We call that a transactional relationship. Each party is “getting something” out of it. Even traditional gender rolls can be considered transactional. A little thought on this situation will explain how that works!

Then there is transactional leadership. This style of leadership has a clear structure. It is leader occupied at the top. There are unbendable policies or rules. Opposition to the rules generates a negative response from the transactional top or leader. This negative response may take the form of ridicule, opposition, or termination.

Some see transactional leadership as a strong and productive proposition. There is no question about who is in charge. Many famous leaders have exhibited this leadership style. Some have been amazingly successful. This style of leadership is based on reward and punishment. It assumes that that is what motivation is based on. It leaves little room for questions, creative exploration of options or opposition. It relies on the blind acceptance of the vision of the transaction leader. Devotion is expected, but can become failure that is worthy of punishment if goals are not met or are opposed. It is a “do as I say” environment.

The notable successes of this type of leadership can lead to short term goals. It is worthy of note that those short term goals are beneficial to the transactional leader and his/her goals.

Since the identification of leadership styles in the mid 20th Century by Max Weber and then its expansion by James Burn’s research, it has led to the adoption of this style by such notables as Gates, Schwarzkopf, Vince Lombardi and others. Their single mindedness (laser focus), active involvement, and goal setting exemplify this leadership style.

Their relationship with their organizations put all of them in positions that was highly directive and totally dependent on their vision. Relationships that developed were often transitory and depended on results. They were rarely based on emotional bonds. Money and goal achievement were the universal motivation within the organizations.

The traits of a transactional leader are easily identified and consistent. They motivate by extrinsic means. Goals are achieved, not because they are universally beneficial, but because they generate rewards to the promoters or the leader. The transactional leader recognizes the realism of a goal rather than seeing a goal as idealistic. “ What good thing will I gain?” How does it work for me?” are the questions asked. Unasked is how this will benefit “all.”

The transactional leader is laser focused as was previously mentioned. The affect of that focus determines what occurs and what is promoted by the leader. In pursuing that goal, the transactional leader is not deterred by extraneous suggestions for change or improvement of critical ideas. The bottom line or result is fixed and expected. There is no room for emotion or empathy in such an objective focused approach.

Generally, the transactional leader has demanded loyalty to himself. As he/she is the source of goals and rules, they are not prepared to deal with “rocks in the road” that do not align with present goals and strategies. Crisis management is available only when absolutely necessary, and then only to address immediate issues so that the outcome promotes the laser focused goals of the transactional leader. There is no long-term approach to issues except in situations where it benefits the goals of the transactional leader.

The management style of the transactional leader has no room for self-blame. The failure to adhere and lack of dedication to the goal is seen as the reason for any failure. If lack of adherence to rules or failure to achieve goals is present, it is obviously the fault of those directed. If they had just done as “they were told”, failure would not have occurred. Responsibility never rests at the top.

The reality of transactional leadership is that it is not leadership at all. It is management. The responsibility for execution is firmly placed on those being directed. When not constrained this type of leadership becomes autocratic.

Transactional leadership has morphed into autocratic leadership. All power is held at the top. All responsibility is elsewhere. There are few if any opportunities for suggestions or creativity. Rewards and repudiation are rampant and arbitrary.

As we move further into the 21st Century, the occurrence of transactional leaders may proliferate. Because this type of leadership rewards self interest rather than intrinsic good, the earth is ripe for it. It can achieve short term goals. These are easily quantifiable and often come as a result of an absence of long-term planning.

The dispersal of credit makes reward and punishment arbitrary and hard to define. To the detriment of mankind, transactional behavior fails to encourage creative solutions to problems. Only preset goals and methods are recognized. Since transactional behavior bases itself on practical ends, money and goal achievement are paramount. How the goals are set is top heavy and based on the transactional party which holds power.

To answer initial questions: Perhaps in some situations it is beneficial to be transactional. It might work for you and promote your personal goals and bottom line. There is however a “big deal “when considering the long term goals of the many.

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Discussion on A Place for the Eye to Rest are meant to promote thought, discussion, consideration, and personal conclusion. Your comments and observations are welcome: Karenmac1999@hotmail.com

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For more articles to discuss and consider including the relationship between Hate and Fear, Critical Race Theory, the concept of Wealth, the sources of Motivation, Monogamy, Love Languages for Business, Vulnerability, Stages of Grief, and Qualified Immunity, go to the blog at Karenmac1999.wixsite.com/website-1 and click BLOG