Which leadership style focuses on goals and motivates through a system of rewards?

The leadership style that emphasizes goals and motivates team members through a system of rewards is transactional leadership. This style is grounded in a clear structure of expectations and performance. Leaders using this approach focus on the organization's specific tasks and objectives, ensuring that roles and responsibilities are well-defined.

In a transactional leadership framework, leaders often establish a system of rewards and penalties—employees who meet or exceed their performance targets may receive bonuses or recognition, while those who do not may face consequences. This method effectively drives performance by providing clarity on what is required to achieve success.

The primary focus is on process and productivity, making it suitable for environments where consistent outcomes are critical. This is distinct from transformational leadership, which is more about inspiring and motivating followers to achieve their highest potential, or servant leadership, which prioritizes the needs of team members to foster a supportive environment. Laissez-faire leadership, characterized by a hands-off approach, often lacks the structure and motivation found in transactional leadership. Thus, transactional leadership is particularly effective for organizations that prioritize results and compliance with established criteria.