What are the two strategies of transactional leadership?

• A. Contingency rewards and management by exception.
• B. Management by exception and contingency rewards.
• C. Rewards contingent on performance and structured feedback.
• D. Exchange-based incentives and discipline.

Answer: (B)

Transactional leadership rests on clear exchanges between leader and followers: performance is rewarded, and deviations are monitored and corrected. The two strategies that define this style are contingent rewards and management by exception.

Contingent rewards involve linking performance to explicit rewards or recognition. Leaders set clear expectations and offer rewards when those expectations are met, reinforcing desired behavior through tangible or symbolic incentives.

Management by exception centers on supervision that focuses on performance standards and corrective action. Leaders monitor for deviations from those standards and intervene to rectify issues, either actively (proactively addressing problems) or passively (taking action only when standards are not met).

This pair captures the exchange-based, task-focused nature of transactional leadership. The other options mix in elements like general feedback or discipline that aren’t recognized as the core paired strategies of this leadership style.