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===Transactional and transformational theories=== {{Main|Transactional leadership|Transformational leadership}} [[Bernard Bass]] and colleagues developed the idea of two different types of leadership: ''transactional'' which involves exchange of labor for rewards, and ''transformational'' which is based on concern for employees, intellectual stimulation, and providing a group vision.<ref>{{multiref2 |1={{cite journal | last1 = Bass | first1 = B. M. | last2 = Avolio | first2 = B. J. | last3 = Atwater | first3 = L. E. | year = 1996 | title = The transformational and transactional leadership of men and women | journal = Applied Psychology: An International Review | volume = 45 | pages = 5β34 | doi=10.1111/j.1464-0597.1996.tb00847.x}} |2={{cite book|last1=Bass|first1=B. M.|last2=Riggio|first2=R. E.|year=2006|title=Transformational leadership|edition=2nd|location=Mahwah, New Jersey|publisher=Lawrence Erlbaum Associates Publishers}} }}</ref> The transactional leader<ref name="Burns">{{cite book| last = Burns| first = J. M.| author-link =James MacGregor Burns| title = Leadership| url = https://archive.org/details/leadership00burn_0| url-access = registration| publisher = Harper and Row Publishers Inc.| year = 1978| location = New York| isbn = 978-0060105884}}</ref> is given power to perform certain tasks and reward or punish for the team's performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct, and train subordinates when productivity is not up to the desired level, and reward effectiveness when expected outcome is reached.
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