A couple of well-known examples of transactional leaders are Charles André Joseph Marie de Gaulle and Joseph Raymond "Joe" McCarthy.
Charles André Joseph Marie de Gaulle was French general and statesman who led the Free French Forces during World War II. De Gaulle later founded the French Fifth Republic in 1958 and served as its first President from 1959 to 1969.
Joseph Raymond "Joe" McCarthy, who claimed that he had 205 names that were made known to the Secretary of State as being members of the Communist Party. At the time of which McCarthy made this statement, communism was a growing concern in America. Because he punished people who broke the laws and rewarded people for bringing forth accused communist, he was able to produce results among his followers.
The transactional style of leadership was first described in 1947 by Max Weber and then by Bernard Bass in 1981. This style is most frequently used by managers and it centers on the basic management process of controlling, organizing, and short-term planning.
Transactional leadership involves directing and motivating followers primarily through appealing to their own self-interest. The authority of transactional leaders comes from their formal authority and responsibility in the organization. The main objective of the follower is to obey the instructions of the leader. The style can also be stated as a ‘telling style’.
The leader believes in encouraging through a system of rewards and punishment. If a subordinate does what is wanted, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here, the exchange amid leader and follower takes place to achieve routine performance goals.