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Fundamentals of the transactional leadership model.

The transactional leadership model calls for leaders to influence followers primarily through contingent reward-based exchanges. Leaders attempt to identify clear goals for followers, the specific paths for achieving the goals, and the rewards that will be forthcoming for achieving them. 
 
A follower’s performance is monitored and corrective actions are taken if there are deviations from the expected path. The emphasis is on exchanging units of work for units of rewards.



LMX model for employee/employer relationships:


Leader-member exchange or LMX suggests that leaders develop different relationships with each of their subordinates through a series of work related transactions. These relationships range from low quality, were it can be completely transactional, or conversely high quality, where the relationship is based on loyalty, obligation and respect. 
 
 The three phases of LMX relationships are 
  1. stranger, 
  2. acquaintance and  
  3. mature partnership.