What is Transactional Leadership in Nursing? (PLUS, Pros VS. Cons, Characteristics, & How to Become)


Written By: Darby FaubionDarby Faubion RN, BSN, MBA

Darby Faubion is a nurse and allied health instructor with over 20 years of clinical experience. Darby lives in Louisiana and loves exploring the state’s rich culture and history. Darby has a passion for caring for veterans and a special interest in those affected by post-traumatic stress disorder. In her quest to make a difference for veterans, she founded a non-profit called “Operation Battle Buddy.” Read Full Bio »»
RN, BSN, MBA


Are you a nurse leader or a nurse who wants to become a nurse leader? If so, you may be aware that there are many types of leadership styles. Knowing the type that best suits your personality and the role you want to take in leadership are important. If you are someone who is driven by productivity and results and you have no problem sticking close to the rules, transactional leadership in nursing could be a good fit for you.

Maybe you heard of this type of leadership but wonder, “What is transactional leadership in nursing, and how can I become a transactional nurse leader?” In this article, I will answer that question and provide you with insight into the pros and cons of this type of leadership. I will also share some transactional nurse leader characteristics and give you some tips on how to implement this leadership style.



What is Transactional Leadership in Nursing?


Transactional leadership in nursing is a type of leadership style that is focused on supervision, performance, and organization. This type of leadership is associated with a method of rewards and consequences based on how well one does their job. Transactional leadership is results-driven and runs on a structure based on predefined rules, regulations, and order.



3 Main Pros of Transactional Leadership in Nursing


As with any leadership style, there are pros and cons to consider, especially if you are the one in the leadership role. Transactional leadership in nursing is no exception. The following are three main pros of this type of nursing leadership to consider.

Pro #1: Transactional Leadership Sets Clear Expectations

One of the things I like about the transactional leadership style in nursing is that it provides clear direction about what is expected of the nursing team. When implemented correctly, transactional leadership outlines expectations and anticipated outcomes, which takes the guesswork out of knowing what you should do each day. I like this concept because it encourages eliminating distractions, which helps everyone stay focused, leading to better outcomes.

Pro #2: Transactional Leadership is Linked to Maximized Productivity

Another main advantage of transactional leadership in nursing is that it often leads to maximized productivity within the nursing team. Because transactional leadership is based on a rewards and consequences model, employees typically strive to not only do a job well, but to be more productive. The more they accomplish, the greater the reward, which makes transactional leadership a great leadership option for leaders who need their teams to ramp up productivity.

I once worked at a nursing home with an administrator who I believe was very much a transactional leader. Being a registered nurse with several years of clinical experience, he knew what it took to get things done. One thing I enjoyed about working with him was that he believed in leveraging time to maximize productivity, no matter what the task or project was at hand. Something else I will always remember about him is that he was fair. If someone did not meet the standards he set, he worked with them to help improve, and he was also quick to offer praise to those who earned it.

Pro #3: Each Team Member Has a Clear Role

The transactional leadership style in nursing sets clearly defined roles for each team member. Having clear roles means it is easier to implement structure, which facilitates a smooth workflow. In this type of leadership, each member knows what is expected of them before they begin work. Transactional leadership also outlines the chain of command clearly, which promotes everyone using the proper channels to address and resolve any issues that may arise.



3 Main Cons of Transactional Leadership in Nursing


Once you identify the pros of the transactional leadership style in nursing and compare them to the cons, you will have a better understanding of what it takes to succeed with this type of leadership style. The list below includes three of the main cons of transactional leadership in nursing.

Con #1: Less Focus on Individual Employee Growth and Development

While transactional leaders in nursing may be supportive of their team members who pursue opportunities for professional growth and development, individual achievements are not the main focus of this type of leadership. Instead, with the transactional leadership style in nursing, more focus is placed on how an organization functions as a whole or what the “bottom line” is.

Con #2: Consequences Often Become the Focus Instead of Rewards

Although transactional leadership in nursing is based on a rewards and consequences model, some leaders tend to focus more on the consequences of failure instead of focusing on and promoting success and rewards. With this type of leadership, it is common for leaders to place blame on workers when tasks or projects are not completed or not up to standard instead of taking responsibility as the leader.

I remember working with a nurse who was promoted to a leadership role, and she quickly began pointing out all of the things the team did wrong instead of acknowledging the positive things. Because her focus was more on the negatives, employee morale within her team took a downward turn, the employee turnover rate increased, and she ended up being replaced. Her situation is a perfect example of why transactional leadership in nursing should be approached carefully and mindfully. Otherwise, in situations where blaming occurs often, it can lead to employee dissatisfaction, which only further compounds the negative mindset of the team, leads to reduced productivity, causes dissension within the team, and problems usually only get worse.

Con #3: Employees Often Get Burned Out or Feel Emotionally Drained

An unfortunate disadvantage of transactional leadership in nursing is that transactional leaders often overlook symptoms of burnout or mental fatigue. One reason this happens is because transactional nurse leaders are not known to ask for employee feedback as often as other types of leaders. To be an effective leader, it may take admitting when you are wrong or when you have missed important queues from your team so you can address issues they are experiencing and help improve their outlook.



7 Main Characteristics of a Transactional Leader


From relying on external motivational measures, being opposed to change, focusing more on short-term goals, and declining to be overly creative, there are many characteristics associated with transactional leadership in nursing. The following are seven of the main characteristics of a transactional leader.

Characteristic #1: Tends to Micromanage

With the transactional leadership style in nursing, not only are decisions from the leader considered final, but the responsibility of the team to accomplish those goals is also the leader's responsibility. Therefore, transactional nurse leaders tend to micromanage their team members. By doing so, it gives them a sense of control as they work to ensure things run smoothly and efficiently.


Characteristic #2: Overly Passive

Transactional nurse leaders are often described as passive because, instead of looking for ways to improve or change systems, they believe in the way things are structured and tend to “go with the flow.” This passive concept should not be mistaken for not caring. Transactional leaders do care. However, their approach is more along the lines of having a set system of rules and regulations and ensuring that everyone on the team knows what they are and follows them.


Characteristic #3: They May Seem Self-Centered

While transactional leadership in nursing has its advantages, some people cannot seem to get past the idea that transactional leaders seem focused only on matters of self-interest. This is not necessarily because leaders do not care about the team or their organization. However, because transactional leadership is a results-driven leadership style, it is easy to assume that teamwork is not the primary goal. Instead, transactional leadership tends to value performance over the individual person, which means climbing the leadership ladder or recognizing those who do is more of the focus.


Characteristic #4: Transactional Leaders Are Reactionary

Transactional nurse leaders are firm believers in the structure of their business and the system by which it is organized. Further, they expect every member of the team to stick to the rules and allow business to flow freely, which means they often fail to look for or assume there are problems until one occurs and they are faced with resolving it or "reacting." This characteristic of the transactional leadership style in nursing is the opposite of proactive leadership, which focuses on strategizing how teams will reach goals but also plans ahead for avoiding or handling challenges.


Characteristic #5: They Use a Pragmatic Approach

Transactional nurse leaders are known to be pragmatic. Instead of basing decisions on theories or ideas, they approach problems based on facts and practicality. Pragmatic nurse leaders are often referred to as “realistic” and “sensible.” Transactional leaders show pragmatism by working smarter, not harder. They value time and expect their team to be focused and decisive so that time is well spent.


Characteristic #6: Highly Organized and Thrives on Structuring Tasks

Another characteristic of the transactional leadership style in nursing is that this type of leader tends to be very organized. Additionally, transactional nurse leaders are known for following a structured method of daily operations. This approach to leadership is especially valuable because it creates sustainable effort and stability.


Characteristic #7: They Are Often Opposed to Change

I enjoy getting to know others and finding ways to work together as a team. Even in some of the highest leadership roles I have worked in, I tried to find common ground with everyone on my team and looked for ways to not only show appreciation for their work but also consider their opinions and try to implement their suggestions at times when it was appropriate and benefited the team and our organization. Because I do not have a problem with being flexible, I am not so sure transactional leadership in nursing would be the best style for me.

While transactional nurse leaders have some excellent characteristics, one thing I have found that makes this type of leadership style less appealing is that this type of leader is often opposed to change. While having things organized and ensuring tasks are completed in an orderly manner is commendable, if leaders have a strong aversion to change, they may come across as rigid or rude, which could affect employee morale and performance.



How to Become a Successful Transactional Leader in Nursing?


If you desire a leadership position in nursing, no doubt, you want to be the best leader possible. Each type of leadership in nursing has different characteristics, pros, and cons. If you feel the transactional leader in nursing role is the leadership style that suits you, the following are a few steps that could help you succeed.


Step #1: Define Clear Expectations for Your Team

One thing I value in strong leaders is their ability to lead teams with well-thought-out direction. If you can think about a plan and the ways it can benefit your team and then convey those thoughts to your team by outlining expectations, you can become an effective leader.

In fact, defining clear expectations is one of the most essential steps in becoming a successful transactional leader in nursing. Use direct communication and provide opportunities to clarify any issues that team members do not understand. Prioritize tasks and make assignments so that each team member knows what is expected of them. That way, when the time to enforce rewards and consequences comes, you can follow through knowing everyone was on the same page.


Step #2: Create Structure Within Your Team

Another important thing you must do if you want to succeed with transactional leadership in nursing is to create structure within your team. Of course, the first step in creating structure is to eliminate as many distractions as much as possible. Although transactional leaders may be thought of as individuals who look out for themselves first, you do not have to be stereotyped as such. Instead, consider the individuals on your team and assign work to teams based on who works best together. Be sure to evaluate progress as projects move along and make adjustments along the way to help strengthen your team’s structure and productivity.


Step #3: Practice Effective Communication

To succeed with transactional leadership in nursing, you must learn to communicate effectively. Whether you utilize online platforms to share productivity and planning or host weekly or monthly team meetings, communication is key to effective leadership. When you create an atmosphere that allows open communication, team members are more likely to participate in feedback opportunities. You can then take their feedback to create or adjust team goals and plans.


Step #4: Develop a System for Measuring Progress

Because the transactional leadership style in nursing is based on a system of rewards and consequences, it is essential for leaders to have a system in place to measure progress. When you create a system for measuring progress, employees know what to do and when, and they know what factors you will consider when determining or monitoring progress.


Step #5: Explain Rewards and Consequences

Several years ago, the leaders and managers where I worked met with nursing staff to discuss issues within the nursing department and to try and find reasonable solutions. I remember clearly when we asked the nurses for input, one of them said they never knew what to expect from their manager. She implied that what seems like satisfactory work one day is criticized the next. Obviously, this can be frustrating for anyone, which is why open communication is essential.

If you want to succeed as a transactional nurse leader, your communication with your team should include clear explanations about rewards and consequences for job performance. Employees who know what to expect from their job performance are more likely to work toward goals of achieving rewards instead of playing a guessing game or wondering if their work is going to be good enough.


Step #6: Make It a Point to Recognize Employee Performance

Nothing makes someone feel appreciated as much as receiving recognition from their leaders or managers. Additionally, when your team feels appreciated, it is motivation for them to keep working to achieve the goals you set. Recognition can be as simple as sending an email or taking a few moments to talk to them about their job performance and how glad you are to have them on their team. You could also go a step further to recognize a top-performing employee during a team meeting. Not only will this make them feel appreciated and motivated, but it could also motivate other employees to follow their example.


Step #7: Never Stop Growing and Learning

The best leaders know that effective leadership requires constant personal and professional growth and development. If you want to be a successful transactional leader in nursing, lead by example. Take advantage of continuing education opportunities, especially those focused on developing leadership skills and team building. When your team sees that you take your job seriously and that you are involved in opportunities to learn and grow, they will feel you value the team, which makes them more likely to follow you as their leader.



My Final Thoughts


In your search for tips on how to become a good nurse leader, you probably came across several types of leadership styles. A common type, transactional leadership in nursing, is one of many leadership styles. In this article, I shared some information about this type of leadership to answer the question, “What is transactional leadership in nursing?”

Whatever leadership style you implement, I encourage you to remember that a team is never any better than the person leading them. Take time to learn from other leaders and mentors, and never let your thirst for knowledge become quenched. Nursing is an amazing career, and it is only made better by exceptional nurse leaders!



List Of Sources Used For This Article


1. “Defining Transactional Leadership” (Western Governor’s University)
2. “Transactional Leadership: The Good, the Bad, and the Ugly” (niagarainstitute.com)
3. “Why Effective Communication in Leadership is Your Most Important Skill” (grammarly.com/business)
4. “8 Types of Leadership Styles in Nursing- Which One is Right for You?” (nursingprocess.org)


Darby Faubion, RN, BSN, MBA
Darby Faubion is a nurse and allied health instructor with over 20 years of clinical experience. Her work history includes clinical experience in pediatrics, mental health, addiction and behavioral disorders, geriatrics, wound management, and communicable disease. Darby has worked in hospitals, long-term care facilities, and home health and hospice agencies. Darby also has experience as a nursing and allied health educator at both community college and university levels. Her love for nursing and nursing education led to her becoming a test-taking strategist and NCLEX prep coach.