Which leadership approach is focused on rewards and penalties?

The focus on rewards and penalties distinctly characterizes the transactional leadership approach. This leadership style is built on a clear structure of expectations and a system of rewards for achieving goals, as well as penalties for failing to meet them. Transactional leaders motivate their followers to perform by using tangible rewards, such as bonuses or promotions, to reinforce desired behaviors. Conversely, if employees do not meet performance standards, they may face consequences, which helps maintain order and consistency within the organization.

In contrast, autocratic leadership typically emphasizes a top-down approach where the leader makes decisions unilaterally without seeking input from others. Transformational leadership, on the other hand, inspires and motivates followers through a shared vision and the leaders' ability to foster positive changes within the organization. Democratic leadership involves collaboration and encourages team participation in decision-making processes, fostering a sense of ownership among team members. None of these styles primarily focus on the system of rewards and penalties as a fundamental mechanism for motivation, which is why transactional leadership is the correct answer.