A Transactional Leader is a type of leader who focuses on the exchange between themselves and their followers. This leadership style is based on clear structures, rewards, and penalties. Leaders set specific goals and provide rewards for achieving them, while also imposing consequences for failure. This approach is often effective in organizations where tasks are routine and performance can be easily measured. Transactional leadership is often contrasted with Transformational Leadership, which emphasizes inspiring and motivating followers to achieve higher levels of performance. While transactional leaders prioritize short-term tasks and compliance, transformational leaders aim to foster long-term growth and change within their teams.