Which type of transactional leader behavior involves giving rewards for good performance?

The correct answer is contingent reward behavior, which is a key aspect of transactional leadership. This type of leader behavior is characterized by the use of rewards to motivate subordinates when they meet certain performance criteria or achieve specific goals. The premise behind this approach is that employees will be driven to perform well when they see a direct link between their efforts and the rewards they receive.

In contingent reward behavior, leaders clearly communicate expectations and the rewards that will follow when those expectations are met. This creates a structured environment where employees understand the incentives tied to their performance, which can enhance motivation and job satisfaction. It effectively establishes a straightforward exchange: if the employee performs well, they receive rewards, such as bonuses, recognition, or other benefits.

While management by exception focuses on addressing deviations from expected performance, it does not inherently involve offering rewards. Transformational inspiration emphasizes motivating and inspiring employees to exceed their own interests for the greater good, which goes beyond mere transactional exchanges. Collaborative governance refers to a collective and participative approach to decision-making, distinct from the one-on-one reward system characteristic of transactional leadership. Thus, the defining focus of contingent reward behavior on providing rewards for good performance makes it the right choice.