Malcolm is the manager of his department. After performance evaluations, he gives those who have met their goals for the year a pay raise. He gives his employees their assignments and leaves them to do their work but does monitor them so that if he notices a potential problem, it gets resolved before causing difficulties. What kind of contemporary leadership style is Malcolm demonstrating

Transactional Leadership

Explanation:

Leadership refers to stimulating and inducing the subordinates so as to extract the desired response or action, which is directed towards achievement of organizational goals and objectives.

Transactional leadership refers to the form of leadership wherein, the leader is very particular about the organizational structure, hierarchy and direction. This form of leadership is more formal in nature wherein incentives are defined to reward good performance.

The leader's focus is upon issuing directions and ensure abidance to organizational rules and norms. The approach lays utmost emphasis upon compliance and efficiency. It is conventional form of leadership and reactive in nature.

In the given case, Malcolm provides pay raise to his subordinates who meet their yearly goals and also supervises and monitors the efficiency of his subordinates. Malcolm's approach depicts transactional form of leadership.

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