Which leadership style is characterized by providing rewards or punishments?

The leadership style that is characterized by providing rewards or punishments is transactional leadership. This approach is focused on the exchanges that occur between the leader and followers, where certain behaviors or performance levels are reinforced with rewards, such as bonuses or recognition, while undesirable behaviors may lead to penalties or corrective feedback.

Transactional leadership operates on a clear structure of expectations and rewards, making it effective in scenarios where tasks are routine and outcomes can be easily measured. Leaders using this style prioritize maintaining the status quo and achieving short-term goals through established processes. This contrasts with other leadership styles, such as transformational leadership, which seeks to inspire and motivate followers toward long-term change and development rather than enforce compliance through rewards and punishments.