Transactional leadership asks leaders to give rewards or recognitions to his followers. This theory thinks that work can be only done through reward system.
It is more about management than leadership. Leaders can punish followers for not achieving goals and not meeting the desired results. Followers are bound to the rules and regulations led by organization or leader and they accept it full heartily.
This may successfully work for short term goals and effectively used in many team and organizations but sometimes can work for long term goals as well which will depend upon effective implementation of leader. Supervisors’ and Team leaders use this type of leadership in organizations.