Senior Professional in Human Resources (SPHR) Certification Practice Exam

What type of leader uses rewards and discipline to accomplish organizational objectives?

1. Transformational leader

2. Servant leader

3. Situational leader

4. Transactional leader

The correct answer is: Transactional leader

The focus of a transactional leader is on the exchange process between the leader and their followers, where rewards are used to motivate employees toward achieving specific organizational goals. This leadership style emphasizes structure, rewards, and penalties. A transactional leader clearly defines tasks and objectives, which helps in managing performance and ensuring that team members meet their assigned roles. In contrast, transformational leaders inspire and motivate employees by fostering a vision for the future and encouraging creativity, while servant leaders prioritize the needs of their team members over their own and focus on their growth and well-being. Situational leaders adapt their approaches based on the needs of their team and the specific situation at hand, rather than employing a consistent method of rewards and discipline. Therefore, the correct answer reflects the transactional leader's reliance on a structured approach, leveraging incentives to drive performance and productivity within the organization.