Filipino Christian Living 5

The Transactional Theory

Topic Outline well done. Some types of contingent rewards
1 Introduction are as follows:
2 Philosophical Foundation o Merit pays
3 What is Transactional? o Incentive bonuses
4 What is Transactional Leadership o Achievement awards
5 The Contingent Reward System o Promotions
6 Something to Ponder o Profit sharing
o Advancement
Introduction o M<ore responsibility
Transactional Theory o More challenging work
 The concept of transactional theory leadership o Personal growth
was first mentioned by Max Weber (1947) in o Free trips
his socio-economic considerations of the o Additional paid vacation Days
organization and described again by Bernard
o Free lunch
Bass in 1981. This style is not most often used
by the managers. It focusses on the basic
Something to Ponder
management process of controlling,
organizing, and short-term planning. This also  The Japanese companies in the Philippines are
created to protect the dignity of workspace and very good in transactional leadership for they
the environment. have this philosophy of “Just in Time” and
adhere quality products as their way of life.
Philosophical Foundation We (Filipinos) should develop the skills of
leadership where customers will not feel bored
 Vision is a lot more than putting a plaque on
even in just few minutes while waiting.
the wall. A real vision is lived, not framed.
(Ken Blanchard and Jesse Stoner)

What is Transactional?
 Transactional is defined as “an instance of
buying or selling something.” In the birth of
modernizations, new jobs situated in every
corner of the world are business in nature. A
transaction connotes delivery of goods or
services for daily needs and ants in exchange
of responsibilities.

What is Transactional Leadership

 This theory focuses on the importance of
interpersonal relationship between the leaders
and members, managers, and subordinates. It
also focuses on results, conform to the existing
structure of an organization to that
organization’s system of rewards and
penalties. This rewards system is given to
motivate employees and give incentives when
it is needed to encourage more productivity

The Contingent Reward System

 It is a motivation-based system that is used to
reward those employees that met their goal. It
can provide a positive reinforcement for a job

Dexter Jan C. Esperanza | 1 | P a g e