ASSESSING THE EFFECT OF TRANSACTIONAL LEADERSHIP ON ORGANISATIONAL PERFORMANCE

This study examined the effect of transactional leadership on organizational performance, using Alliance One Tobacco Malawi Limited as a case study.
Transactional leadership focuses on structured roles, clear expectations, and the use of rewards and penalties to influence employee behavior and performance. Although widely practiced, questions remain regarding its long-term impact on employee motivation and overall organizational success.
A quantitative research design was adopted, with data collected through structured questionnaires from a sample of 35 employees. The data were analyzed using the Statistical Package for the Social Sciences (SPSS), applying descriptive statistics and a Chi-square test of independence to assess the relationship between transactional leadership and organizational performance.
The findings indicated that employees generally responded positively to transactional leadership practices, particularly in areas such as recognition, rewards, and clear goal setting. These elements were found to enhance short-term motivation and task completion. However, the Chi-square results revealed no statistically significant relationship between transactional leadership and overall organizational performance.
Additionally, the study highlighted that an overreliance on external rewards may undermine intrinsic motivation and reduce long-term employee commitment. This suggests that while transactional leadership can be effective in managing performance at an individual level, it may not be sufficient for achieving sustained organizational success.
The study concludes that organizations should adopt a balanced leadership approach, integrating transactional leadership with strategies that promote intrinsic motivation to enhance long-term performance.

Key words: Transactional Leadership, Organizational Performance, Motivation, Rewards, Leadership, employee behaviour, Employee Performance, Leadership Effectiveness, Organizational Efficiency, Work Performance, Incentive Systems, Employee Engagement, Job Satisfaction, Performance Management, Leadership Styles, Workplace Productivity, Behavioral Outcomes, Organizational Success, Human Resource Management.