Certified Nurse Manager and Leader (CNML) Practice Test

What is the main focus of Transactional Leadership?

1. Employee-inspired innovation

2. Visionary planning and future change

3. Setting goals and rewarding achievement

4. Encouraging team-based problem-solving

The correct answer is: Setting goals and rewarding achievement

The main focus of Transactional Leadership lies in setting clear goals and rewarding employees for meeting or exceeding those goals. This leadership style is built on structured tasks and defined roles, where leaders provide specific instructions and expect compliance. Leaders in this model rely on a system of rewards and punishments to motivate their staff, emphasizing performance and the achievement of established objectives. Transactional leaders create a straightforward exchange relationship with their team members: effort is met with rewards, which could range from bonuses and promotions to praise and recognition. This focus on measurable outcomes facilitates a productive work environment where employees know what is expected of them and how to achieve it. In contrast, other leadership styles mentioned in the options emphasize different aspects of leadership, such as innovation or visionary planning, which are more aligned with transformational leadership principles. By focusing on clear expectations and rewards, transactional leadership effectively drives performance and operational success within organizations.