MSIN0142 Organisational Behaviour
Closed-Book Question Guide
Based on the Final Exam Study Guide + essay guidance + your weekly lecture materials
How to use this file (closed-book)
1) Memorise each question as: definition -> 2 to 4 key findings/mechanisms -> 1 critique/boundary -> 1
application.
2) Do not try to memorise full paragraphs. Memorise the bullet logic, then reconstruct the essay in the exam.
3) Use the essay verbs from the exam guidance: Describe = define; Discuss = explain
mechanisms/evidence; Critique = limits/boundaries; Apply = managerially useful action.
Foundations of Organizational Behavior (1
How did the Hawthorne studies advance our knowledge of organizational behavior?
Shifted attention away from purely physical/technical conditions toward social and psychological factors at
work.
Highlighted the importance of group norms, involvement, leadership, job satisfaction, and resistance to new
ideas.
Many early findings did not clearly prove cause and effect, and the 'Hawthorne effect' shows that observation
itself can change behavior.
Define reliability and validity, and describe how these concepts differ from each other. Provide
examples of their importance at work.
Reliability = consistency of a measure. Validity = accuracy: whether the measure actually captures what it is
supposed to capture.
A measure can be consistent but still wrong (for example, everyone gets the same biased rating). Validity
needs reliability, but reliability alone is not enough.
Work examples: low agreement between raters in interviews = reliability problem; measuring job satisfaction
only at 8:30 a.m. = validity problem.
What are the two key features of an experiment? What are the primary considerations of experimental
research? What are observational/correlational designs, and when are they most useful?
Two key features of an experiment: changing at least one variable and randomly assigning people to
conditions.
Main things to consider: internal vs external validity, lab vs field realism, strength of the change, checks that the
change worked, ethics, and pre-planning the study.
Observational/correlation-based designs measure variables without changing them or randomly assigning
people. They are most useful when experiments are unethical, impossible, or when researchers want strong
real-world usefulness.
What is performance? Task performance?
Performance = the overall value of a person's work-related behaviors over a set time period.
Task performance = ability in the main technical activities officially required by the job.
Useful distinction: task performance is the main work part of the job, while contextual behavior is about the
wider social and organizational environment.
What are some of the major issues with performance management?
Annual reviews are often too rare, too political, and too far removed from real daily work.
Supervisor ratings are less accurate because of memory bias, personal bias, halo effects, and wrong or
incomplete standards.
Performance management works better when criteria are linked to business goals and managers provide
regular guidance rather than one annual judgment.
Describe and discuss five key insights about performance at work.
Mean, maximum, and variable performance are different; consistency matters, not just peak output.
Supervisor ratings often differ from actual performance because ratings reflect rater bias, politics, and memory
limits.
Performance distributions are often skewed: a small number of people produce a much larger share of output.
Performance trends matter: an upward trend can matter differently from a flat or downward one.
Helping behavior is not evaluated equally: it can be more 'optional' and more rewarded for some groups than
for others.
What constitutes effective feedback? Which two models of feedback did we discuss in class, and
what are the merits and drawbacks of each?
Effective feedback is specific, timely, behavior-based, private when needed, respectful, and linked to a next
step.
Sandwich model (positive-negative-positive): can soften delivery, but often weakens the core message and
teaches people to wait for the 'real' criticism.
SBI model (Situation-Behavior-Impact): more precise and easy to act on, but requires care so it does not feel
too rehearsed or like blame.
How do you get useful feedback?
Ask for advice, not just 'feedback' - advice is more focused on the future and feels less threatening.
Ask specific questions about a recent episode or behavior rather than 'How am I doing overall?'
Choose someone informed, make it easy for them to answer honestly, and listen without becoming defensive.
Intelligence and Personality
Why does intelligence matter at work? Does it predict job performance, and if so, why?
General thinking ability is one of the strongest broad predictors of job performance across many jobs.
It predicts performance largely because more able people learn faster, build job knowledge faster, and solve
novel problems better.
The effect is especially important in jobs with learning demands, ambiguity, and complexity.
How does intelligence relate to occupational attainment? Does cognitive ability matter less in simple
jobs?
Thinking ability predicts both career success and performance across many occupations.
It matters more in complex jobs, but it does not drop to zero in simpler jobs.
The key idea is moderation by job complexity, not 'only matters in elite jobs'.
Does intelligence matter less once you have more job experience?
Experience builds knowledge, but it does not fully replace thinking ability.
More able people often keep learning faster, even after they gain experience.
The intelligence advantage may narrow somewhat in routine jobs, but it is usually not eliminated.
What are the two major problems with intelligence testing?
Unequal impact: cognitive tests can show sizable group differences, creating fairness and legal concerns.
Negative candidate reactions: candidates may dislike the tests or question their fit with the job.
Practical implication: organizations often combine cognitive tests with other methods rather than relying on
them alone.
There have been at least two major developments concerning intelligence testing at work. What are
they, and why do they matter?
Validity across many jobs: intelligence predicts performance across many jobs and settings, not just a few
isolated ones.
Recognition of limits: job complexity changes the effect, but ability still matters even in simpler jobs.
Together, these developments moved the field away from 'sometimes yes, sometimes no' toward a more
careful view: 'yes, but more in some jobs than others'.
What is the difference between identity and reputation, and why do these two perspectives on
personality matter?
Identity = how you see yourself. Reputation = how other people actually experience and judge you.
At work, outcomes often depend more on reputation because coworkers react to your visible behavior, not your
private self-story.
This matters because personality effects often appear through misalignment between identity and reputation.
We discussed how mismatches can offer insight into personality effects in the workplace. What are
the major implications of mismatches?
Mismatches reveal blind spots: you may think you are warm, confident, or calm while others experience you
differently.
They help explain why self-ratings and other-ratings can predict different workplace outcomes.
Practical implication: 360 feedback and other-ratings are valuable because some traits are hard to self-
diagnose accurately.
What are the three levels of personality-job fit? Provide examples.
Occupational fit: your traits match the broad occupation (for example Enterprising -> sales/leadership;
Investigative -> analytics/research).
Task fit: your traits match the daily work tasks (for example high conscientiousness for detail-heavy planning
and follow-through).
Social fit: your traits match the people and interaction demands around you (for example agreeableness in
cooperative, interdependent teams).
Describe and discuss the Big Five model of personality, explaining how each personality trait predicts
important workplace outcomes. How might this information be useful at work?
Openness: creativity, adaptability, willingness to learn. Conscientiousness: reliability, discipline, task
performance. Extraversion: visibility, networking, influence. Agreeableness: cooperation and helping.
Neuroticism/low emotional stability: stronger stress reactions and lower calmness.
Conscientiousness is usually the strongest broad predictor of performance; extraversion is especially relevant
for emergence and social roles.
Useful for selection, development, team composition, and role fit - but traits are tendencies, not fixed destinies.
Can personality tests be faked? Do people successfully fake personality tests in real-world selection
contexts? What information is important to know to be able to fake a personality assessment in
occupational settings?
Yes, personality tests can be faked in principle, especially in high-stakes settings.
In real selection contexts, people can distort responses, but successful faking is usually less perfect than many
people fear.
To fake well, a candidate would need to know which traits the job rewards, how the items are keyed, and how
to answer consistently without obvious contradictions.
Hiring the Best People
What is an organizational needs analysis? Why is it important?
An organizational needs analysis asks whether hiring is really the right solution to the problem.
It matters because poor performance may actually be caused by job design, leadership, workload, pay, training,
or process failures.
It prevents expensive 'hire more/better people' responses to problems rooted elsewhere.
What is a job analysis? What are the major methods of analyzing jobs?
Job analysis is the systematic study of tasks, responsibilities, and KSAOs required for a role.
Major methods include observations/interviews, critical incident technique, task inventory surveys, O*NET, and
competency modeling.
It is the foundation for valid selection, appraisal, training, and legal defensibility.
What are the major principles underlying effective hiring practices? Describe and discuss each
principle.
Reliability: the method should produce stable judgments. Validity: it should predict meaningful performance.
Fairness: it should minimize unjustified unequal impact. Cost: it should be worth the time/effort/money.
Transparency/candidate reactions: it should feel understandable and job-relevant.
Strong hiring systems balance these principles rather than maximizing one and ignoring the others.
Business necessity matters: if a method creates unequal impact, the organization should be able to justify it
with fit with the job and lack of less harmful alternatives.
What are weighted application blanks? What are the primary considerations involved in using them?
Weighted application blanks are empirically scored application/biodata items used to identify candidates likely
to succeed.
They are useful as a cheap early screening tool.
Main considerations: historical bias, privacy, applicant gaming, opaque weighting, and whether the variables
are truly job-relevant.
What are the risks involved with using AI to assess application data for hiring purposes?
AI can reproduce historical discrimination if trained on biased past hiring or resume data.
It can be opaque and hard to explain or defend legally.
It may optimize convenience rather than valid ideas, and it raises data-quality and privacy concerns.
Describe and discuss the reliability and validity of interviews as a hiring method.
Unstructured interviews are often unreliable and validity is lower because judgments are contaminated by first
impressions, small talk, and inconsistency.
Structured interviews are more reliable and more valid because all candidates get comparable, job-relevant
questions with scoring guides.
Training, note-taking, and job-focused questions improve interview quality.
What are work samples? What are the pros and cons?
Work samples ask candidates to perform realistic job tasks.
Pros: strong face validity, good prediction, and high fit with the job.
Cons: time/cost burden, difficulty creating samples for some roles, and ethical concerns if candidates are
effectively doing unpaid real work.
What are situational judgment tests, and when are they most useful?
SJTs are low-fidelity simulations that ask what a person would do in a work scenario.
They are most useful when interpersonal judgment, prioritization, and practical decision-making matter.
They can add incremental validity beyond ability and personality when designed well.
Provide examples of common assessment center exercises, and discuss the pros and cons of using
assessment centers for hiring.
Common exercises: leaderless group discussions, in-basket/in-tray tasks, role plays, case analyses, and
presentations.
Pros: broad sampling of behavior across multiple exercises and assessors.
Cons: expensive, labor-intensive, sometimes redundant in what they measure, and still vulnerable to bias.
Happiness at Work
What are the differences between affect, emotions, and moods?
Affect = the broad range of positive and negative feelings people experience.
Emotion = a brief, specific feeling state tied to a particular event (for example anger after being blamed
unfairly).
Mood = a longer, more diffuse feeling state without a single clear trigger.
Expressed as a percentage, how much does job satisfaction vary across the day? How much does
mood influence within-person variability in job satisfaction?
Key memory point: job satisfaction is not completely stable - about one third of its variability is within-person
rather than between people.
Mood explains a substantial share of that day-to-day fluctuation in job satisfaction.
Exam takeaway: do not treat job satisfaction as a fixed trait; affective events move it around.
What is emotional labor? What are the two primary strategies people use to deal with emotional labor,
and which strategy is most closely related to emotional exhaustion and burnout?
Emotional labor = expressing organizationally desired emotions during interpersonal work interactions.
The two main strategies are surface acting (change the display only) and deep acting (change the felt emotion
too).
Surface acting is more strongly linked to emotional exhaustion and burnout.
How do you differentiate a fake smile from a real smile? Why is this knowledge important for
navigating the workplace?
A genuine Duchenne smile involves the eye muscles (orbicularis oculi) as well as the mouth; a fake smile is
often mouth-only.
This matters because sincerity, trust, and customer/social interactions are partly interpreted through emotional
displays.
But use this knowledge cautiously: no single cue is perfect.
Describe and discuss the major strategies for recognizing emotions at work.
Look for mismatches across channels: face, voice, posture, and timing.
Use cultural display rules as context: people may amplify, attenuate, conceal, or substitute emotions.
Micro-expressions can matter, but they are rare and should not be treated as a magic lie detector.
What is emotional intelligence and why does it matter at work?
Emotional intelligence is the ability to see, understand, use, and manage emotions effectively.
It matters because it supports social functioning, well-being, and performance, especially in emotionally
demanding or interpersonal work.
Distinguish ability-based EI from mixed EI models.
Do people systematically overestimate or underestimate the duration of their unhappiness following
negative events?
People generally overestimate how long negative events will make them unhappy.
This is affective forecasting error: we imagine future misery as longer-lasting than it usually is.
Implication: people often make life and career choices based on exaggerated predictions of future distress.
Describe the “moving goal post” theory of happiness and articulate its role in understanding our
answers to the question of how much income will make us happy.
As income rises, the amount people think they need to be happy often rises too.
This happens because aspirations and comparison standards move upward.
So money can improve life, but the target for 'enough' keeps shifting.
Does higher income predict life happiness? Unpack the major research findings on this question.
Higher income predicts higher life evaluation fairly consistently.
But in the classic finding, day-to-day experienced happiness flattens around about US$75,000, even while life
evaluation keeps rising.
Main takeaway: money reduces misery and improves life evaluation, but it is not an unlimited source of daily
emotional well-being.
Can happiness be earned? Provide evidence on the strength of the relationship between pay level, job
satisfaction, and pay satisfaction, and discuss what it means.
Pay level has only a modest relationship with job satisfaction (roughly .14 to .15) and a somewhat stronger
relationship with pay satisfaction (roughly .22 to .23).
So pay matters, but it is not the main driver of overall job satisfaction.
Organizations should not expect salary alone to solve morale or retention problems.
Are happy employees productive employees?
Yes, on average there is a moderate positive relationship between job satisfaction and performance (about r
= .30).
Likely reasons include greater persistence, cooperation, health, and willingness to invest effort.
But this is not a guarantee that every satisfied employee is high-performing.
Does satisfaction predict performance, or does performance predict satisfaction?
The evidence leans more toward satisfaction predicting later performance than the reverse, but the effect is not
huge.
The reverse path from performance to later satisfaction is weaker in the evidence discussed.
Best exam answer: attitudes appear to matter more, but the relationship is not purely one-way in all contexts.
What are “honeymoons and hangovers” when it comes to understanding how job satisfaction varies
over time?
When people start a new job, satisfaction often spikes first (honeymoon) and later declines (hangover).
That means early reactions to a job can be misleadingly positive.
The idea reminds us that job attitudes change over time rather than staying flat.
How much of the variability in job satisfaction is attributable to genetic factors?
About 30% of the variance in job satisfaction is attributable to genetic factors in the cited twin evidence.
This does not mean satisfaction is fixed; it means dispositions matter alongside environment.
Job design, fairness, leadership, and relationships still meaningfully shape satisfaction.
Describe and discuss the job characteristics model.
The five core job characteristics are skill variety, task identity, task significance, freedom, and feedback.
They influence three psychological states: meaningfulness, responsibility, and knowledge of results.
These states support higher intrinsic motivation, performance, satisfaction, and lower absence from
work/quitting.
What is individualized consideration (leader consideration) and why is it so important for leaders?
It means showing personal concern, support, and respect for each follower's needs and development.
It is important because feeling understood and valued strongly supports satisfaction, trust, and motivation.
It is one of the strongest leadership-related predictors of follower attitudes.
Describe and discuss equity theory as an explanation of job satisfaction.
People compare their input-output ratio with relevant others.
If they see under-reward or unfairness, they feel tension and try to restore equity cognitively or behaviorally.
Equity theory helps explain why fairness views strongly shape satisfaction even when objective outcomes look
acceptable.
Why do people quit their jobs? Describe and discuss the March and Simon (1958) model of turnover
(withdrawal).
The March and Simon model centers on movement desirability and movement ease.
People are more likely to quit when they dislike the current job and believe alternatives are available.
So quitting is not just dissatisfaction; it also depends on perceived opportunity.
What is the unfolding model of turnover? Why is it helpful in understanding who leaves their job?
The unfolding model says many people quit because of shocks - jarring events that trigger rethinking - not just
chronic dissatisfaction.
This is helpful because many departures are hard to explain with attitude variables alone.
It captures sudden exits after events such as relocation, value violations, or unexpected life changes.
Describe and discuss the psychology of staying vs. leaving, explaining why its important for our
understanding of turnover.
The psychology of staying is not just the opposite of leaving.
Job embeddedness explains staying through fit, links, and sacrifices.
This matters because people may stay even when dissatisfied, or leave even when relatively satisfied.
What is the turnover criterion problem?
Quitting is not one single outcome; how you define it changes your conclusion.
Three key distinctions are voluntariness, functionality, and avoidability.
If you ignore these distinctions, you may recommend the wrong retention intervention.
Motivation
What is motivation?
Motivation is the set of psychological forces that determine direction, intensity, and persistence of effort.
It is not just 'working hard'; it is working hard on the right thing and continuing long enough.
Good answers distinguish effort from choice and persistence.
What are the major components of Vroom’s expectancy theory? What does each component mean?
Provide examples.
Expectancy: if I try, can I perform? Instrumentality: if I perform, will I get the outcome? Valence: do I value the
outcome?
The logic is multiplicative: if one link is near zero, motivation collapses.
Example: training can raise expectancy, visible reward contingencies can raise instrumentality, and tailored
rewards can raise valence.
How does Herzberg’s two-factor theory of motivation differ from other theories of motivation?
Describe how it could be used to improve motivation at work.
Herzberg separates hygiene factors from motivators instead of putting everything on one satisfaction
continuum.
Hygiene factors prevent dissatisfaction; motivators create positive motivation above baseline.
Use it by first fixing pay/policies/conditions, then increasing responsibility, achievement, growth, and meaningful
work.
What are the main mechanisms underlying the effects of goals on performance?
Goals direct attention toward relevant activities.
They energize effort, increase persistence, and stimulate strategy search/use.
So goals work not only by effort but also by focusing behavior and learning.
Do specific, challenging goals outperform goals like “do your best”? Why or why not?
Yes, specific and challenging goals usually outperform vague 'do your best' goals.
They create clearer standards, stronger effort, and better self-regulation.
But they work best when accepted, feasible, and paired with feedback.
Name three factors that affect how strongly goals affect performance, and explain why.
Goal commitment: difficult goals only work if people accept them and care about them.
Feedback: people need information to adjust effort or strategy.
Task complexity: on complex tasks, goal effects depend on whether people can discover effective strategies.
What is merit pay and how is it different from incentive pay?
Merit pay is a salary increase based on performance, usually rolled into base pay.
Incentive pay is a variable reward contingent on performance, such as a bonus, commission, or piece rate.
Merit pay changes base salary; incentive pay does not necessarily.
Does incentive pay boost productivity? Discuss the various pros and risks of using incentive pay.
It often can increase productivity, especially when output is measurable.
But risks include threatened freedom, overjustification, pay inequality, gaming metrics, and rewarding A while
hoping for B.
Best answer: incentives can work, but only if carefully aligned to real goals and side effects are managed.
Groups and Teams(1
What defines good team performance?
Good team performance means high-quality, timely output with low process loss.
It also means the team remains viable: members learn, want to work together again, and do not burn out the
system.
So good performance is about output plus sustainability.
What is social facilitation? Why does it matter?
Social facilitation means the presence of others improves performance on simple/dominant tasks but can hurt
performance on difficult/novel tasks.
It matters because audiences, monitoring, and co-presence change how people perform.
Practical implication: pressure and visibility help some tasks but can impair learning or creativity.
What is social loafing? How does it occur in groups?
Social loafing is reduced individual effort when people work collectively.
It occurs when individual contributions are hard to identify, accountability is low, or people feel dispensable.
Reduce it through identifiability, meaningful tasks, smaller teams, and stronger norms.
What is groupthink and why does it matter?
Groupthink is excessive pressure toward consensus that suppresses critique and alternatives.压制批评和选择
It matters because groups may ignore warning signs, self-censor 自我审查, and make worse decisions.
Prevention tools include dissent, devil's advocates, independent subgroups, and leader restraint.
Describe and discuss cohesion and conformity.
Cohesion is the degree of attraction, commitment, and bond among group members.
Conformity is aligning behavior or opinions with group norms or pressures.
Both can help coordination when norms are good, but can be dangerous when they discourage critical thinking.
Negotiations
What are distributive and integrative negotiations?
Distributive negotiation divides a fixed pie: one side's gain is the other side's loss.
Integrative negotiation expands value by introducing interests or issues beyond a single price point.
Pure salary haggling is distributive; salary plus flexibility/start date/responsibilities is more integrative.
What is anchoring? When is it an effective strategy? How does knowledge of anchoring help you in a
negotiation?
Anchoring is the tendency for first numbers to strongly shape later judgments and final deals.
It is most effective when you are informed, can justify the number, and use a credible, precise first offer.
Knowing anchoring helps you make strong first offers and resist/react to extreme anchors from others.
What is a “BATNA” and what does it mean in the context of negotiations?
BATNA = Best Alternative To a Negotiated Agreement.
It is your best no-deal option and therefore a major source of bargaining power.
A stronger BATNA means you can walk away more confidently.
What is a ZOPA? Why is it important?
ZOPA = Zone of Possible Agreement, the overlap between parties' reservation values.
If there is no ZOPA, agreement on current terms is not possible.
It matters because it tells you whether there is a real deal to be made and how much room there is for
bargaining.
What do the terms “reservation price” and “target price” mean?
Reservation price/value = your bottom line, the worst deal you are still willing to accept.
Target price = your ideal but realistic aspiration.
Good preparation means anchoring near the target while never conceding below the reservation point.
Influence
What are the two routes to persuasion, and how do they work?
Central route persuasion works through careful thinking about argument quality; it produces more durable
attitude change.
Peripheral route persuasion works through cues such as liking, authority, or social proof when motivation or
ability to think deeply is low.
Which route dominates depends on attention, motivation, and cognitive capacity.
Describe and discuss the six influence principles. Define each principle, explain the psychological
reason it works, and provide workplace examples.
Reciprocity: people feel pressure to return favors. Commitment/consistency: people want behavior to match
prior commitments and identity. Social proof: people copy others under uncertainty.
Liking: we say yes more often to people we like or see as similar. Authority: we defer to expertise or legitimate
status. Scarcity: we value opportunities more when they seem rare or time-limited.
Workplace examples: free help before asking a favor (reciprocity), public change pledges (commitment),
adoption statistics in rollouts (social proof), peer champions (liking), expert endorsements (authority), limited
pilot slots or deadlines (scarcity).
Power and Status
What are social hierarchies and how common are they? Why?
Social hierarchies are implicit or explicit rank orders on valued dimensions.
They emerge very quickly and are extremely common across groups and organizations.
They help coordinate order and motivation, but they can also entrench inequality and distort voice.
Define power and status, and explain how they are different from each other.
Power = asymmetric control over valued resources and outcomes.
Status = respect and admiration granted by others.
Power is about control; status is about prestige. You can have one without the other.
Describe power-approach theory and explain at least five ways it can be used to predict behavior at
work.
Power-approach theory says power activates approach tendencies: people focus more on rewards and act with
less inhibition.
It predicts greater action orientation, risk taking, optimism, direct speech, and expression of true attitudes.
It also predicts less perspective-taking, reduced sensitivity to threat, more interruption/assertion, and greater
ethical or norm-violation risk if unchecked.
Describe the social distance theory of power and its two main principles.
Social distance theory says asymmetric dependence creates asymmetric social distance: the powerful feel less
dependent and therefore less close.
The second principle is that power heightens construal level, meaning more abstract and less concrete thinking
about others.
Together, these principles explain why powerful people may affiliate less and think about others in more distant
terms.
What are four known effects of social distance?
Powerful people discount social comparison information more.
They are less susceptible to others' social influence attempts.
They show less perspective-taking and empathic concern.
They are less accurate at inferring others' thoughts and feelings (lower empathic accuracy).
Leadership
What are the differences between leaders and managers?
Managers are associated more with planning, coordinating, organizing, and controlling.
Leaders are associated more with direction, meaning, alignment, inspiration, and influence.
One person can be both, but the concepts are not identical.
Which personality trait predicts leadership effectiveness but not leadership emergence, and why?
Conscientiousness is a stronger predictor of leadership effectiveness than of leadership emergence.
It helps with follow-through, organization, reliability, and disciplined execution.
But it does not make a person especially visible or instantly 'leader-like' in first impressions.
Which trait correlates most strongly with effectiveness and emergence as a leader?
Extraversion is the strongest broad trait correlate of both leadership emergence and effectiveness.
It helps because visible involvement, assertiveness, and speaking up make people seem leader-like.
Important critique: emergence is not the same as actual competence.
What is the participation-leadership effect?
The more people speak and participate in a group, the more likely they are to be seen as leaders.
This helps explain why extraverts often emerge quickly.
But involvement can be mistaken for quality, so loudness and competence are not the same thing.
What is most surprising about the link between intelligence and leadership effectiveness?
The link is real, but smaller than many people expect (about r = .24 in the slide).
This is surprising because intelligence is often treated as the most powerful trait in psychology.
Practical takeaway: intelligence matters, but it is not the whole story in leadership.
What three categories of skills can leaders develop? Which skills are most important at the bottom
levels of management? At the top?
The three categories are technical skills, human skills, and conceptual skills.
Lower levels depend more on technical and human skills.
Higher levels depend more on conceptual and human skills.
State the differences between transactional and transformational leaders. Explain why
transformational leaders achieve higher leader performance.
Transactional leadership is based on exchange: contingent reward, active/passive management by exception,
and sometimes laissez-faire at the weak end.
Transformational leadership goes beyond exchange through idealized influence, inspirational motivation,
intellectual stimulation, and individualized consideration.
It predicts stronger outcomes because it adds vision, meaning, development, and extra-role motivation beyond
basic exchange.