Transactional Leadership

The video tutorial explains transactional leadership, focusing on its reward-based motivation system. It contrasts this with transformational leadership, which aligns organizational and individual values. The video details three techniques used by transactional leaders: contingency reward systems, active management by exception, and passive management by exception. Each technique varies in the level of leader involvement and response to subordinate actions.

What is the difference between active management by exception and passive management in transactional leadership?

Explain the importance of the reward system in transactional leadership.