" Additionally, this style of leadership in the organization makes it impossible for employees to take actions to improve job satisfaction. (Wanjiru, 2009, paraphrased) Furthermore, transactional leadership '...has been ineffective in providing skilled employees to their organization. This style of leadership is least interested in changing the work environment. Experts do not recommend this approach. Transactional leadership focuses more on management of punishments and rewards.

IV. Examples of Work Environment in Which Transactional Leadership Style is Effective

The work of Paul Gerhardt (2004) entitled: "Transformational and Transactional Leadership in Retail: Customer Service, Training and Evaluation" states that the transactional leader operates "...within existing systems, they believe in delivering penalties for noncompliance of requests. Another example of transactional leadership may be an elected official who promises to make a requested change or changes to certain policies if elected. Transactions are clearly being made as aspects of leadership styles." (Gerhardt, 2004)

Gerhardt (2004) additionally states that transactional leaders use "...strategy, structure and culture to strengthen the organization. Transactional leadership can be illustrated primarily through a system of contingent-reward exchanges and active management-by-exceptions. This style of leadership is generally characterized through a process of goal setting, setting of expectations, defining how followers will be rewarded, and finalized constructive feedback." (Gerhardt, 2004)

From this information it can be understood that the transactional leadership style is more likely to be effective in the organization where employees are not autonomous and in which they are not intrinsically motivated as these employees require motivation from outside or external sources and this is where the transactional leadership is effective in motivating employees through making expectations clear and through informing employees of the rewards that can be expected for high productivity. The transactional leadership style alternatively, is less likely to be effective in the work environment with employees who are autonomous and self-motivated and is more likely to be less effective in the organizational environment where employees need little information from leadership to complete their tasks.

V....

Summary & Conclusion
The statement of thesis in this present work claims that the transactional style of leadership is effective in some organizational contexts but that however, the transactional style of leadership is not effective in other organizational contexts. Transactional leadership is based on the belief that people are motivated by punishment and reward and further is based on the assumption that in the case where employees agree to complete a particular assignment that inclusive in this is the surrendering of authority to their leader who possess control and power over the organization's subordinates.

Transactional leadership is characterized generally through processes that include:

(1) setting of goals;

(2) setting of expectations;

(3) defining the rewards that will be received upon successful completion of assigned tasks; and (4) finalized constructive feedback. (Gerhard, 2004)

Transactional leadership is characterized through a communication style that 'tells' or 'informs' employees instead of being collaborative in nature. There are inherent limitations of this type of leadership as well as there being inherent benefits that are derived from the use of transactional leadership in the organization.

Bibliography

Allen David (nd) Comparison of Leadership styles of United States and Japan. Broadway Business. 22 July 2009. Online available at: http://ivythesis.typepad.com/term_paper_topics/2009/07/comparison-of-leadership-styles-of-united-states-and-japan-6.html

Gerhardt, Paul (2009) Transformational and Transactional Leadership in Retail: Customer Service, Training and Evaluation. July 2004. Online available at: http://www.paulgerhardt.com/homework/TranformationalTransactonalLeadershipInRetail.pdf

Lussier, Robert N. And Achua, Christopher F. (2009) Leadership: Theory, Application & Skill Development. Cengage Learning 2009.

Thomas, Greg (2003) What is 'Transactional Leadership'? Leadership Tip of the Month. January 2003. weLEAD, Inc. Online available at: http://www.leadingtoday.org/Onmag/jan03/transaction12003.html

Wanjiru, Muna wa (2008) a Look at the Benefits of Transactional Leadership. Articlesbase. 29, May 2008. Online available at: http://www.articlesbase.com/self-help-articles/a-look-at-the-benefits-of-transactional-leadership-style-429707.html