transactional leadership transactional leadership A leadership style based on the setting of clear goals and objectives for followers and the use of rewards and punishments to encourage compliance. Comparetransformational leadership. See alsocontingent reinforcement; power styles. transaction costs In economics, the costs incurred in making a bargain, over and above the benefit exchanged. They typically include research costs, bargaining costs, and enforcement costs; there will also be agency costs if an agent is used (seeagency relationship). A simple example of a transaction cost is the commission paid to a broker when buying or selling securities. |