kills associated mostly with controlling processes, planning, organising and achieving results. The factors taking part in transactional approach were distinguished as ‘contingent reward and management by exception’ (Bass, 2009). Management by exception was later divided into active and passive. Within the active factor an action would be taken when performance standards are not met whereas the passive one focuses on taking an action not sooner than problems itself arise. Bass continues to add that transactional leader’s definition is very similar to definition of a manager. Rosenbach (2018) agrees that if used correctly, transactional approach can be an effective tool in achieving high performance and therefore constitute a part of managerial leadership.

Tim Richardson (2015) advises that transactional approach to leadership requires adjustments if the organisations are no longer able to offer enough flexibility; it is also mentioned that ‘command and control, egocentric and autocratic’ style is referred to as not durable, forceful and not providing enough motivation. Richardson adds that it can often be damaging to reputation of organisations. The fact was also noted by Bass (2009) who states that if within organisations were only transactional leaders then their approach, and therefore success of that organisation would be impacted as corrective action needs to be taken much earlier than when the issue becomes noticeable.

It is true however that this style of leadership is still very much prevalent in organisations nowadays. It is also agreed that transactional style of leadership is found mostly in managerial positions where performance of an employee is rewarded with pay rises, bonuses or promotions. Those are still quite popular ways of recognition and that a lot of individuals still feel satisfied with. The constantly changing factors, both external and internal as well as individual needs and perceptions may force the leadership style to transform and adapt accordingly in order for organisations to go forwards and move away from the traditional approaches.

This thought leads to transformational approach to leadership. As explained by Bertocci in 2009 transformational leadership style encourages individuals not only to reach performance standards but to exceed the expectations of a leader. Three fundamental traits enabling a leader to achieve that are listed as charisma being an abili