Which leadership style assumes that employees require extrinsic rewards to be motivated?

The leadership style that assumes employees require extrinsic rewards to be motivated is transactional leadership. This style is based on a system of clear exchanges or transactions between the leader and the followers. Here, leaders set specific goals and objectives, and in return for their achievement, they provide rewards such as bonuses, promotions, or other forms of recognition.

Transactional leadership emphasizes the role of supervision, organization, and performance. This approach works effectively in structured environments where compliance with established procedures is important. By focusing on extrinsic rewards, this style aims to clarify expectations and motivate employees through tangible incentives, making it particularly effective for achieving short-term tasks and objectives.

In contrast, transformational leadership focuses on inspiring and motivating employees through a shared vision, fostering intrinsic motivation rather than relying solely on extrinsic rewards. Participative leadership encourages input and collaboration among team members, aligning motivation with group goals rather than personal gains. Directive leadership involves giving clear instructions and closely supervising tasks, which does not inherently prioritize motivation through extrinsic rewards. Each of these other styles approaches motivation from different angles, emphasizing intrinsic factors or team dynamics over the transactional reward system of the transactional leadership style.