Little Book of Big Management Theories, The, 2nd Edition

THEORY 15

BURNS’ TRANSACTIONAL LEADERSHIP THEORY

Use to obtain compliance from a member of staff who needs to be persuaded to comply with your request.

It was James MacGregor Burns who popularised the phrase ‘transactional leadership’. In doing so he described a process that has been going on between leaders and followers, managers and staff and parents and children since Adam was a lad in short pants.

Burns’ theory describes the, often informal, bartering process that goes on between leaders and staff all the time. He identified two very different strategies that managers can use.

Constructive transactions occur:	Corrective or coercive transactions occur:
When the leader offers inducements to the follower to comply with their request. ...