Which leadership model relies on contingent rewards and management by exception to achieve performance expectations?

• A. Time-Driven Model of Leadership
• B. Transactional Leadership Model
• C. Transformational Leadership
• D. Situational Leadership Model

Answer: (B)

Transactional leadership emphasizes performance through clear expectations and exchanges between leader and followers. Contingent rewards are the rewards offered when those expectations are met or exceeded, creating a hands-on system of rewards for results. Management by exception means the leader monitors performance and intervenes only when standards aren’t being met or when problems arise, rather than continually guiding development. This combination—rewards tied to performance and corrective oversight to keep performance on track—defines the transactional approach, making it the best fit for those elements in the question. Transformational leadership focuses on inspiration and development, Situational leadership adapts style to follower readiness, and the time-driven approach centers on efficiency and process, not the reward-for-performance exchange and exception-based oversight described here.