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

The emphasis on transactional leadership centers around the principle that motivation for employees largely hinges on extrinsic rewards, such as bonuses, promotions, or other tangible incentives. This leadership style is rooted in a give-and-take dynamic, where leaders provide clear structures and expected outcomes in exchange for successful performance from their team.

Transactional leaders focus on setting specific goals and using reinforcement to encourage compliance and achievement, essentially fostering an environment where performance is rewarded and underperformance may face consequences. This approach effectively aligns employees' efforts with organizational objectives by linking their contributions directly to rewards, making it ideal for tasks requiring routine compliance and adherence to established processes.

In contrast, transformational leadership seeks to inspire and motivate employees intrinsically, encouraging personal growth and a shared vision rather than relying solely on extrinsic rewards. Charismatic leadership builds on personal influence and charm to engage followers distinctively, prioritizing emotional connections over material incentives. Servant leadership emphasizes the leader's role in serving their team, placing the well-being and development of employees at the forefront, which again diverges from the transactional focus on concrete rewards.

Thus, the hallmark of transactional leadership remains its reliance on extrinsic motivators, making it the most fitting choice for the question posed.