Which leadership style assumes that employees require extrinsic rewards for motivation?

Transactional leadership is characterized by the idea that employees are primarily motivated by external rewards, such as pay, bonuses, and other tangible incentives. This leadership style focuses on a clear structure for achieving goals, where leaders establish expectations and provide rewards or consequences based on performance. The premise is that when employees meet certain objectives, they receive rewards, thereby encouraging them to maintain or increase their performance levels.

In contrast, transformational leadership emphasizes inspiring and motivating employees through a shared vision and intrinsic motivations, while charismatic leadership relies on the leader's personal appeal and influence. Servant leadership prioritizes the growth and well-being of employees and communities, often focusing on empowering and uplifting team members rather than extrinsic rewards. Thus, transactional leadership distinctly aligns with the belief that motivation comes primarily from external rewards.