ORIGINAL TOPIC: Benefits and Shortcomings of

Transactional style of management and how could this

leadership style develop to retain good staff? A case review
of Marks and Spencer.

ORIGINAL TOPICTOPIC ADAPTATION: Benefits and

shortcomings of the transactional style of management and
how could this leadership style develop to retain good staff?
A case review of Marks and Spencer

Topic Number: MGTMGT64112

WORD COUNT; 3714

Data and Design: 2000 words

 Table of Contents

Introduction 3

Background 3

Rationale 3

Research Aims and Objectives 4

Research Questions 4

Annotated Bibliography 5

Concept of transactional leadership 5

Benefits and shortcomings of transactional leadership 6

Challenges of transactional leadership in retail 8

Contemporary practices in transactional leadership 9

Data 11

References 13

Introduction................................................................................................................................................................. 4

Context.................................................................................................................................................................. 4

Background......................................................................................................................................................... 4

Rationale.............................................................................................................................................................. 4

Purpose of Research....................................................................................................................................... 5

Research Aims and Objectives................................................................................................................... 5

Research Questions......................................................................................................................................... 6

Annotated Bibliography.......................................................................................................................................... 6

Data Collection......................................................................................................................................................... 27

Method of Data Collection......................................................................................................................... 27

 Research Design............................................................................................................................................. 27

Analysis........................................................................................................................................................................ 28

Results.......................................................................................................................................................................... 28

Ethical Considerations.......................................................................................................................................... 29

Timeline....................................................................................................................................................................... 30

Critical Reflection using Carl’s Framework of Reflection......................................................................31

SWOT Analysis......................................................................................................................................................... 32

Research Data and Design................................................................................................................................... 33

Introduction................................................................................................................................................................. 33

Research Strategy...................................................................................................................................................... 33

Research Philosophy...................................................................................................................................... 33

Research Strategy............................................................................................................................................ 34

Choices................................................................................................................................................................ 34

Time Horizon.................................................................................................................................................... 35

Techniques & Procedures.............................................................................................................................36

Data Collection Techniques...............................................................................................................36

Data Collection Procedures................................................................................................................36

Data Analysis................................................................................................................................................... 37

Conclusion................................................................................................................................................................... 38

Reflective Evaluation............................................................................................................................................... 38
Introduction
Context
A classic management approach known as “transactional leadership” is based on
exchanging incentives and penalties for output. The well-known British retailer Marks and
Spencer (M&S) has made transactional leadership a key component of its personnel
management strategy. This approach emphasizes defining roles and duties precisely, laying
out expectations in detail, and putting in place performance-based incentive and
punishment systems (Xu, 2023). Though transactional leadership can offer stability and
structure, it can also stifle innovation and lower employee engagement. This essay
examines the merits and drawbacks of M&S’s transactional management style and offers
ideas for improving it to keep talented employees.

Background
Since its founding in 1884, Marks and Spencer (M&S) has been a recognizable name in the
retail sector, renowned for both its superior goods and outstanding customer support. M&S
has tried several different management and leadership philosophies over the years to help
them deal with the changing retail environment (Udin, 2020). Among M&S, transactional
leadership became the most popular approach, placing a strong emphasis on task-oriented
supervision and performance-based incentives. This strategy complemented the business’s
emphasis on production and efficiency. But as the retail industry developed, M&S
encountered difficulties with staff engagement and retention, which prompted a review of
its leadership approach to better serve its workforce’s needs and hold onto top talent.

Rationale
At Marks and Spencer (M&S), the implementation of a transactional leadership style was
motivated by the necessity for established management procedures to guarantee
operational effectiveness and uphold high-performance standards. Transactional
leadership offers a clear structure for establishing goals, tracking advancement, and
recognizing success in a fast-paced retail industry with strict targets and competitive
pressures (Nurlina, 2022). M&S sought to maintain its reputation for dependability and
quality while streamlining operations by placing a strong emphasis on task completion and
adherence to set procedures. But as the retail industry changed, it became clear that a
transactional strategy was limited in terms of encouraging innovation, long-term
commitment, and employee satisfaction (Siers, 2017). Understanding how crucial it is to
hold onto top talent in a cutthroat industry, M&S is working to modernize its leadership
approach by adding aspects of transformational leadership, employee empowerment,
creativity stimulation, and a common goal to promote long-term success.

Purpose of Research
The purpose of this research is to evaluate the benefits and drawbacks of the transactional
management style within the framework of Marks and Spencer (M&S) and offer
recommendations for how to make it better to retain skilled workers. The purpose of this
study is to shed light on the effectiveness of transactional leadership in a reputable retail
company like M&S and how it impacts employee satisfaction and retention. In addition, the
study looks into how M&S could improve and adapt its leadership style to better meet the
changing needs and expectations of its employees in a competitive industry. The purpose of
this study is to provide information to M&S leadership and management teams by outlining
the key benefits and drawbacks of the transactional approach, along with potential areas
for development.

Background

The retail industry is one of the largest and most rapidly evolving sectors all over the
world, employing millions upon millions of people globally. Given this, it is also a focal
point of research for business management studies looking to identify and evaluate
theories and strategies for enhancing performance, improving employee retention, driving
organisational growth, and so on. In this context, leadership theories/approaches are one
of these focus areas which is emphasised as a means of improving employee motivation
and productivity. There are many approaches/styles of leadership that have been theorised
by scholars and practitioners over the years, one of which is the transactional leadership
(TL) style. It involves leaders motivating their subordinates/followers through the process
of exchange, by rewarding those who meet or exceed the requirements of their roles and
punishing those who do not (Asghar and Oino, 2017). However, today the use of
transactional leadership, while still prevalent, is not given much weight. This study will
seek to assess the positive and negative aspects of this leadership in the context of the
retail industry. To this end, the study will focus its inquiry on transactional leadership
approaches on a specific retailer, in this case, Marks & Spencer – a UK-based multinational
retailer that deals in selling clothing, home, beauty, and food products. The business was
founded in 1884 by Michael Marks and is now headquartered in Paddington, London (M&S,
2023a). With more than 400 stores and 72,316 people employed globally and generating
revenues in millions (£11,931.3 in the year ending 1 April 2023), the company is thriving
(M&S, 2023b; M&S, 2023c). The study will thus seek to assess the positive aspects and
major challenges related to the use of transactional leadership approaches in the company.

Rationale

Transactional leadership is founded upon the reward and punishment mechanism, which is
taps into a fundament psychology of human behaviour. It is a simple and clear-cut
approach to leadership, where leaders set goals for their employees, the latter meets them
or not, and are correspondingly rewarded or punished. However, it has its cons, like the
lack of innovation and empowerment to name a few, which have been recognised in many
studies. However, it is still quite commonly used in the retail sector (Afsar et al., 2017;
Khan and Jantan, 2022). This study seeks to examine this inconsistency by assessing the
positive and negative aspects of transactional leadership, as well as the challenges faced by
the retail sector, with the underlying purpose of developing this style to help retain
employees. This is an important topic as it serves to add to the literature on effective
leadership standards.

Research Aims and Objectives

the study aims to examine the major challenges of the Transactional Leadership Style faced
by the Retail Industry.

● To describe a brief introduction to the Transactional Leadership Style

● To analyze the different characteristics of the Transactional Leadership Style as

used in Marks & Spencer (M&S)

● To investigate the challenges of the transactional leadership style faced by M&S

 ● To give some recommendations to deal with the challenges within M&S

Research Questions

● What is the concept of transactional leadership?

● What are the positives and negatives of transactional leadership?

● How transactional leadership and management can be a challenge for the retail
industry and M&S specifically?

● What should the management at M&S do to deal with the challenges of transactional
leadership?
Annotated Bibliography
[1]Citation: Dong, B. (2023). A Systematic Review of the [1]Citation

Transactional Leadership Literature and Future Outlook. Academic

[2]Introduction
Journal of Management and Social Sciences, 2(3),21.
[3]Aims &
[2]Introduction: The article by Bo Dong provides a comprehensive
Research
review of the current state of research on transactional leadership.

The author aims to synthesize key findings and identify future [4]Scope

research directions in the field of transactional leadership. [3]Aims [5]Usefulness

& Research: The aim is to provide a strong theoretical framework

[6]Limitations
for understanding transactional leadership and its impact on
[7]Conclusion
organizational performance. [4]Scope: The scope of the article is

limited to the literature on transactional leadership. The author [8] Reflections

acknowledges that there is still room for improvement in

[9]
transactional leadership research, particularly in developing a deeper
Demographics
understanding of transactional leader behavior, conducting studies
[10] Relevance
in cross-cultural contexts, and investigating the mechanisms of
to which
transactional leaders’ influence on organizational performance.
objective
[5]Usefulness: This article is useful for researching the benefits and

shortcomings of the transactional style of management and how this

leadership style could develop to retain good staff. The information

is up-to-date and from a reliable source, making it relevant to

research. In particular, this article will assist in understanding the

theoretical framework of transactional leadership and its impact on

organizational performance.[6]Limitations: The main limitation of

the article is that it focuses solely on the literature on transactional

leadership and does not provide practical examples of its application

in real-world settings. [7]Conclusion: The article concludes that

understanding transactional leadership is crucial for enhancing

organizational performance, resilience, and leadership development.

[8] Reflections: This work provides a strong theoretical framework

for understanding transactional leadership and its impact on

organizational performance. It highlights the benefits and limitations

of transactional leadership and identifies areas for future research.

[9] Demographics: The article does not focus on any specific

demographic but provides a general overview of the literature on

transactional leadership.[10] Relevance to which objective: The

article is relevant to the objective one

[1]Citation: Khan, A. M., & Jantan, A. H. B. (2022). [1]Citation

Moderating Role of Psychological Empowerment on the

[2]Introduction
Relationship between Transactional Leadership and
[3]Aims &
Individual Innovation: Evidence from Banking Sector of
Research
Bangladesh. Journal of International Business and

Management, 5(10), 01-12. https://doi.org/10.37227/jibm- [4]Scope

2022-09-5488/ [2]The authors argue that transactional [5]Usefulness

leadership is a significant leadership style that can engender

[6]Limitations
follower innovative behavior, and psychological
[7]Conclusion
empowerment plays a moderating role in this relationship.

[3]Aims & Research: The study aims to examine the [8] Reflections

relationship between transactional leadership and individual

[9]
innovation in the banking sector of Bangladesh, with a focus
Demographics
on the moderating role of psychological empowerment.
[10] Relevance
[4]Scope: The study is limited to the banking sector of
to which
Bangladesh, and the findings may not be generalized to
objective
other industries or contexts. [5] Usefulness: This article is

useful for researching the benefits and shortcomings of the

transactional style of management and how this leadership

style could develop to retain good staff. The information is

up-to-date and from a reliable source, and it provides a

strong theoretical foundation for understanding the

relationship between transactional leadership and individual

innovation. [6] Limitations: The study is limited to the

banking sector of Bangladesh, and the findings may not be

generalizable to other industries or contexts. The study also

used questionnaires to collect data, which may be subject to

response bias.[7] Conclusion: The study found that

transactional leadership has a positive effect on individual

innovation, and psychological empowerment moderates this

relationship. [8] Reflections: This article provides a strong

theoretical foundation for understanding the relationship

between transactional leadership and individual innovation.

The findings of this study can be applied to the case of

Marks and Spencer to understand how transactional

leadership can be developed to retain good staff and enhance

individual innovation.[9] Demographics: The study was

conducted in the banking sector of Bangladesh, which is a

developing country. [10] Relevance: the article is relevant to

objective one.
[1] Citation: Deichmann, D., & Stam, D. A. (2015). [1]Citation

Leveraging transformational and transactional leadership to

[2]Introduction
cultivate the generation of organization-focused ideas. *The
[3]Aims &
Leadership Quarterly*, *26*(2), DOI:
Research
10.1016/j.leaqua.2014.10.004.[2]Introduction: In this article,

Deichmann and Stam investigate the relationship between [4]Scope

leadership style and idea generation in employees. [3} Aim [5]Usefulness

& research: The authors aim to examine the impact of

[6]Limitations
transformational and transactional leadership styles on
[7]Conclusion
organization-focused idea generation. They conducted a

study in a retail company with four branches, collecting data [8] Reflections

from employees and their supervisors. The research focuses

[9]
on the relationship between leadership style and idea
Demographics
generation in employees. [4] Scope: The scope of the study
[10] Relevance
is limited to a retail company with four branches, which may
to which
limit the generalizability of the findings to other industries or
objective
contexts. The authors also used a two-year time frame to

measure the number of ideas submitted by employees, which

may not provide a complete picture of the employees’ idea

generation over time. [5] Usefulness: This article is useful

for researching the benefits and shortcomings of the

transactional style of management and how this leadership

style could develop to retain good staff. The information is

up-to-date and from a reliable source, which adds credibility

to the research. In particular, this article will assist in

understanding the negative relationship between

transactional leadership style and organization-focused idea

generation.[6] Limitation: The main limitation of the study is

that the dependent variable and some independent constructs

were evaluated by the same source. However, the authors

made every effort to minimize this potential issue. [7]

Conclusion: Deichmann and Stam’s study provides a strong

theoretical foundation for the relationship between

leadership style and idea generation in employees. The

authors’ findings suggest that transformational leadership

style is positively related to organization-focused idea

generation, while transactional leadership style is negatively

related to it. [8] This work illuminates my topic by providing

a theoretical foundation for the relationship between

leadership style and idea generation in employees. The

study’s findings suggest that transformational leadership

style is positively related to organization-focused idea

generation.[9]The study’s demographics are not specified,

but the study was conducted in a retail company with four

branches.[10] This article is relevant to objective two

[1]Citation: Hussain, S. T., Lei, S., Haider, M. J., & Akram, [1]Citation

T. (2017). Transactional leadership and organizational

[2]Introduction
creativity: Examining the mediating role of knowledge
[3]Aims &
sharing behavior. Cogent Business & Management, 4(1),
Research
1361663. https://doi.org/10.1080/23311975.2017.1361663

[2] Introduction: [4]Scope

The article by Hussain et al. (2017) explores the relationship [5]Usefulness

between transactional leadership, knowledge sharing

[6]Limitations
behavior, and organizational creativity. The authors argue
[7]Conclusion
that transactional leadership is a behavior that is likely to

manage large corporations or lead international projects that [8] Reflections

require rules and regulations to complete objectives on time.

[9]
[3] Aims & Research: The authors’ research aims to
Demographics
investigate the relationship between transactional leadership,
[10] Relevance
knowledge-sharing behavior, and organizational creativity.
to which
The authors develop a hypothesis that knowledge sharing
objective
has a positive influence on organizational creativity in an

organization. [4] Scope: The scope of the article is limited to

the relationship between transactional leadership,

knowledge-sharing behavior, and organizational creativity.

The authors focus on a specific context and may not be

generalizable to other contexts.[5]Usefulness: The article is

useful for research on the benefits and shortcomings of the

transactional style of management and how this leadership

style could develop to retain good staff. The authors provide

a strong theoretical foundation for their research and their

findings are supported by well-known researchers in this

field, such as Judge and Piccolo (2004) and House and

Aditya (1997). The article will assist in understanding the

relationship between transactional leadership, knowledge-

sharing behavior, and organizational creativity. [6]

Limitations: The main limitation of the article is that it

focuses on a specific context and may not be generalizable to

other contexts. The authors also do not consider the impact

of other leadership styles on organizational creativity. [7]

Conclusion: The article by Hussain et al. (2017) provides

valuable insights into the relationship between transactional

leadership, knowledge-sharing behavior, and organizational

creativity. The authors’ research findings suggest that

knowledge sharing has a positive influence on organizational

creativity in an organization. [8] Reflections: The article

provides insights into the relationship between transactional

leadership, knowledge-sharing behavior, and organizational

creativity. The findings suggest that knowledge sharing has a

positive influence on organizational creativity in an

organization. This information will assist in understanding

the benefits and shortcomings of the transactional style of

management and how this leadership style could develop to

retain good staff. [9] Demographics: The article does not

focus on a specific demographic but provides insights that

can be applied to organizations in different regions. [10]

Relevance to which objective: The article is relevant to

objective two
[1] Citation: Mabotuwana Vithanage, S. S. U. (2020). The Impact of [1]Citation

the Transactional Leadership on Organizational Productivity: A

[2]Introduction
Monographic Study. International Journal of Multidisciplinary and
[3]Aims &
Current Educational Research, 2(5), 297-309.[2] Introduction: In
Research
this article, Mabotuwana Vithanage examines the impact of

transactional leadership on organizational productivity. The author [4]Scope

argues that leadership styles play a crucial role in business [5]Usefulness

organizations and aims to investigate whether transactional

[6]Limitations
leadership styles are reflected in the productivity of employees. [3]
[7]Conclusion
Aims & Research: The article aims to examine whether the

transactional leadership styles of an enterprise are reflected in the [8] Reflections

productivity of the employees. The author identifies three

[9]
dimensions of transactional leadership, namely task orientation,
Demographics
people orientation, and contingent reward, and explores their impact
[10] Relevance
on productivity.[4] Scope: The research is limited to a monographic
to which
site, which ensures that the research findings are not affected by
objective
contextual differences of totally different business settings. The

study is conducted in a selected garment-manufacturing

organization in Sri Lanka, which may limit the generalization of the

findings to other contexts. [5] Usefulness: This article is relevant to

my research topic on the benefits and shortcomings of a

transactional style of management and how this leadership style

could develop to retain good staff. The information is up-to-date and

from a reliable source. In particular, this article will assist in

understanding the impact of transactional leadership styles on

organizational productivity, based on the dimensions identified in

the article. [6] Limitations: The research is limited to a monographic

site, which may limit the generalizability of the findings to other

contexts. [7] Conclusion: The article concludes that transactional

leadership styles have a significant impact on organizational

productivity. The study identifies three dimensions of transactional

leadership, namely task orientation, people orientation, and

contingent reward, and explores their impact on productivity. [8]

Reflections: This work illuminates my topic by providing a strong

theoretical foundation for understanding the impact of transactional

leadership styles on organizational productivity. The study identifies

three dimensions of transactional leadership, which can be used to

develop a conceptual framework for understanding the benefits and

shortcomings of the transactional style of management. [9]

Demographics: The study is conducted in a selected garment-

manufacturing organization in Sri Lanka, which is a developing

country. However, the findings can be applied to other developing

countries and may have implications for organizations in developed

countries as well.[10] Relevance to which objective: This article is

relevant to objective three

[1] Citation: Nsom et al. (2019). Assessing the Impact of [1]Citation

Transactional and Transformational Leadership Styles on

[2]Introduction
Workforce Behavior. International Journal of Research –
[3]Aims &
Granthaalayah, 7(6), 164-173. DOI:
Research
10.5281/zenodo.3266231 [2] Introduction: The introduction

of this article provides background information on the study [4]Scope

of leadership styles and their impact on personnel conduct. [5]Usefulness

The authors highlight the importance of effective leadership

[6]Limitations
in the workplace and the need to understand the impact of
[7]Conclusion
different leadership styles on workforce behavior.

[3] Aims & Research: This research aims to assess the [8] Reflections

impact of transactional and transformational leadership

[9]
styles on workforce behavior. The study aims to determine
Demographics
the leadership style among transactional and
[10] Relevance
transformational leadership styles that positively affect
to which
personnel conduct at the workplace than the other.[4] Scope:
objective
The scope of this article is limited to the impact of

transactional and transformational leadership styles on

personnel conduct in the workplace. The authors do not

consider other leadership styles or their impact on workforce

behavior. [5] Usefulness: This article is useful for

researching the benefits and shortcomings of the

transactional style of management and how this leadership

style could develop to retain good staff. The information

provided in this article is up-to-date and from a reliable

source. In particular, this article will assist in understanding

the impact of transactional and transformational leadership

styles on personnel conduct in the workplace.

[6]Limitations: The main limitation of this article is that it

only focuses on the impact of transactional and

transformational leadership styles and does not consider

other leadership styles. [7] Conclusion: This article provides

valuable insights into the impact of transactional and

transformational leadership styles on personnel conduct in

the workplace. It is a useful resource for researchers

interested in understanding the benefits and shortcomings of

the transactional style of management and how this

leadership style could develop to retain good staff.

[8]Reflections: This work illuminates my topic by providing

a comprehensive understanding of the impact of

transactional and transformational leadership styles on

personnel conduct in the workplace. The article highlights

the importance of effective leadership in managing and

achieving organizational goals.[9] Demographics: The study

was conducted in Cameroon, which is a developing country

in Africa. However, the findings of this study can be applied

to other developing countries and regions.10] Relevance to

which objective: This article is relevant to the objective three

Concept of transactional leadership

Annotated Bibliography 1

Citation: Khan, A.M. and Jantan, A.H.B., 2022. Moderating Role of Psychological
Empowerment on the Relationship between Transactional Leadership and Individual
Innovation: Evidence from Banking Sector of Bangladesh. Journal of International Business
and Management, 5(10), pp.01-12.

Summary of content: This research study delves into the concept of transactional
leadership and its role in fostering innovative work behaviour among employees in a
commercial bank in Bangladesh. The study expands on the concepts of transactional
leadership and innovative work behaviour. It also assesses the moderating role of
transactional relationships towards psychological empowerment. The study gathers data
through a survey of 372 employees which was analysed using SPSS and Smart-PLS. Key
findings in the study included the finding that psychological empowerment is a variable in
the relationship between transaction leadership and innovative work behaviour, as lower
empowerment leads to weaker relationships and higher empowerment allows for stronger
relationships.

Evaluation of the source: In regard to the source, the publication is recent and is
published in a respectable journal, with the authors also having other works of literature.
Furthermore, the research has been transparent about the use of methodology and ethics.

Reflection on use: The study provides a clear and comprehensive description of the
concept of transactional leadership, taking from other relevant sources as well as a critical
evaluation of these descriptions.

Transactional leadership is a well-known leadership/management concept which has been

researched extensively. Khan and Jantan (2022) describe TL as an approach which entails
mutual exchange between leaders and followers towards defining a potentiality or
standard of performance in followers and arranging rewards or punishment on the basis of
the latter's performance. They expand on their view of a transactional leader as tending to
identify employee needs and satisfy them with appropriate rewards if desired levels of
performance are achieved or give out punishments if those performance levels are not
achieved. Iscan et al. (2014) posited a similar explanation for TL, defining it as a
relationship founded on exchange between leaders and followers for mutual benefit.

Benefits and shortcomings of transactional leadership

Annotated Bibliography 2

Citation: Young, H.R., Glerum, D.R., Joseph, D.L. and McCord, M.A., 2021. A meta-analysis of
transactional leadership and follower performance: Double-edged effects of LMX and
empowerment. Journal of Management, 47(5), pp.1255-1280.

Summary of content: This research study addresses the question of transaction

leadership affecting follower performance with leader-member exchange and
psychological empowerment serving as variables. Literature search was the research
method used in this study, findings from which were meta-analysed, to obtain conceptual
links between the variables. The results of the study demonstrate that transactional
leadership has both a positive and negative effect on the performance of followers,
suggesting that this leadership style is a double-edged sword in regard to follower
performance, while also positing two types of performance, namely, contextual and task
performance.

Evaluation of the source: This study is also very recent indicating the currency of the
findings, while the source and publication are also reputed, which establishes the quality of
the research. Furthermore, the authors are also established academicians, with a number of
published works.

Reflection on use: The results of the study present both positive and negative correlations
between transactional leadership and follower performance, enabling its use to identify the
benefits and shortcomings of the approach.

Annotated Bibliography 3

Citation: Deichmann, D. and Stam, D., 2015. Leveraging transformational and transactional
leadership to cultivate the generation of organization-focused ideas. The leadership
quarterly, 26(2), pp.204-219.
Summary of content: This research study investigates how both transactional and
transformational relationships serve to motivate employees to commit to an organisational
ideation program with the aim of generating ideas that benefit the organisation. The
research uses previous studies about leadership styles regarding leadership behaviours,
with multilevel data collected from multinational companies revealing that both the
leadership approaches allow for effective motivation of employees in regard to committing
to an ideation program, and ideas generated by leaders, but has also been found to be
contingent on how strong leaders are aligned with the organisation’s culture and beliefs.

Evaluation of the source: Looking at the source, it can be said that while the study is not
that current, its findings are still relevant considering the contextual relationships that are
being assessed. The source of the journal is also trustworthy and the authors are credible
with a number of other works under their belt.

Reflection on use: Overall, this research provides a number of insights as to how

transactional leadership can be beneficial towards leadership performance in regard to
motivation and engagement.

Cheng et al. (2014) proposed TL to be positively associated with the creativity of middle-
level managers in terms of finding new ways to keep employees motivated to perform to a
certain standard. On the other hand, the study by Öncer (2013) found that there was no
association between innovativeness or risk-taking dimensions of entrepreneurship and TL.
Khan and Jantan (2022) posit that the discrepancies in the effectiveness of transactional
leadership in different organisational settings are down to variations in power distance,
organisational structure, culture, and individual perceptions. As Si and Wei (2012) state,
transactional leaders avoid risks, do not generally challenge the status quo, try to operate
within stipulated boundaries, and focus on operational effectiveness and efficiency. As
such, the argument put forward by Deichmann and Stam (2015), that transactional
leadership is especially effective in providing results in less dynamic workplaces which
involve routine tasks which require stability and certainty, stands to be accurate.

However, this leads to shortcomings like the lack of enterprise among employees in terms
of introducing change, envisioning innovative strategies, or trying out new solutions. Khan
and Jantan (2022) find that there is a negative relationship between transactional
leadership and innovative work behaviour and actually demotivates or shuts down such
tendencies. In light of this, transactional leadership can be argued to not line up with
workplaces which require critical and innovative thinking and problem-solving. As such, it
has the shortcoming of being negatively related to entrepreneurial behaviour considering
that it does not stimulate motivation to exploit opportunities. The results of the study by
Young et al. (2021) found that transactional leadership can be a double-edged sword, with
both positive and negative effects on follower performance. From the SDT perspective, the
transactional leadership approach can be argued to exhibit more positive effects on
follower performance. Whereas, from the SDT perspective, it would seemingly have a
negative effect.

Challenges of transactional leadership in retail

Annotated Bibliography 4

Citation: Jacobs, E. and Mafini, C., 2019. Transactional leadership, supply chain quality and
business performance in the fast-moving consumer goods industry. Journal of Transport
and Supply Chain Management, 13(1), pp.1-13.

Summary of content: This literature focuses on the topic of how leadership practices can
serve to improve performance in the FCMG industry in South Africa, with a focus on the
link between transactional leadership and supply chain performance in the industry. The
research a quantitative approach through a survey that targeted managers and employees
in the industry. The results of this study proposed that two aspects of transaction
leadership, namely contingent reward and management by expectation effective in
positively influencing supply chain performance, including non-financial and financial
performances.

Evaluation of the source: This source is also valid given the recency as well as the source
of publication. In this case, as well, the authors of the study have a number of other works
of literature.
Reflection on use: This study has provided a good understanding of how different
transactional leadership approaches can allow for improved business performance,
particularly in regard to the supply chain function.

Annotated Bibliography 5

Citation: Fröber, K. and Dreisbach, G., 2014. The differential influences of positive affect,
random reward, and performance-contingent reward on cognitive control. Cognitive,
Affective, & Behavioral Neuroscience, 14, pp.530-547.

Summary of content: This research study focuses on investigating the influence of

contingent reward relationships as well as their non-contingent aspects in regard to
proactive control. This research makes use of two experimental groups on whom the
effects of contingent and non-contingent rewards were assessed in regard to proactive
control. This study put forward the finding that performance-contingent rewards can result
in motivational effects in terms of increased proactive control, while non-contingent
rewards were found to reduce proactive control.

Evaluation of the source: Unlike the above-mentioned sources, this research is not very
recent but is published in a trusted journal publication. The authors have been found to
have several well-known works of literature.

Reflection on use: The concept of rewards contingent on performance is clearly relevant

to the concept of transactional leadership as it also focuses on driving performance with
rewards. In this regard, the following study serves to prove that performance-contingent
rewards can help to ensure better management performance and control.

One study by Jacobs and Mafini (2019) focused on the relationship between different
approaches of TL style and store performance or supply chain quality (SCQ) in retail and
FCMG businesses. The study found that while some approaches of transactional leadership
had positive correlations with supply chain quality, others did not. The contingent reward
approach of TL was found to have a positive relation with SCQ. Similar findings were
obtained in the study by Fröber and Dreisbach (2014) where effective contingent reward
relationships strengthened competitive advantage through SCQ. Jacobs and Mafini (2019)
also found the management-by-expectations approach to have a positive association with
SCQ.

However, the main challenges appeared when it came to adopting a passive-avoidant

approach to transactional leadership. The study found a negative association between the
passive-avoidant approach and SCQ. This is consistent with the findings by Skogstad et al.
(2014), which find that passive-avoidant transactional leadership can have negative
consequences in critical circumstances. This is most evident in situations where
supervision is lacking, leading to employees lowering their expectations of performance
and not giving their maximum effort in work, leading to a negative impact on
organisational procedures and a decrease in quality standards. Another challenge is the
impact on employee empowerment contingent on the principles of the SDT perspective
that a TL approach may have negative correlations with, as is recognised in the findings by
Khan and Jantan (2022).

Contemporary practices in transactional leadership

Annotated Bibliography 6

Citation: Alrowwad, A.A., Abualoush, S.H. and Masa'deh, R.E., 2020. Innovation and
intellectual capital as intermediary variables among transformational leadership,
transactional leadership, and organizational performance. Journal of Management
Development, 39(2), pp.196-222.

Summary of content: This research study examines the relationship between different
leadership practices like transactional and transformational leadership with organisational
performance in Jordanian banks. The study makes use of questionnaire surveys of 350
respondents to test the research hypotheses. The findings of the study imply that
transformation and transactional leadership are positively related to organisational
performance, which serves to establish the argument that transaction leadership can help
improve contextual performance in transactional leadership.

Evaluation of the source: The source of this research is also valid and credible in regard
to its currency being quite recent, and is also published in a trusted source journal. The
authors of the study are also known academicians and have a number of published works.
Reflection on use: The results of the study can be used to develop strategies that can be
used to improve the quality and performance of transactional leadership in a business
while improving and overcoming the negative aspects of the approach.

The above discussion concisely outlines the shortcomings and challenges of transactional
leadership in general and retail settings specifically. The lack of autonomy and freedom of
thought are the negative aspects. As such, based on the findings by Young et al. (2021),
transactional leaders need to be more focused on the motivational aspect of the leader-
follower relationship. Creating opportunities to foster social exchanges that inspire and
push employees to be more productive and put in greater effort can be a cost-effective way
to improve contextual performance in transactional leadership (Alrowwad et al., 2020).
Therefore, the focus should be more on the empowerment of the employees and allowing
space for autonomy in work to overcome the challenges.
Data Collection
Method of Data Collection
Secondary data collection techniques will be used in this study on the advantages and
drawbacks of transactional leadership at Marks and Spencer (M&S) and tactics for keeping
talented employees. Without having to interact directly with participants, secondary data
gives a multitude of pre-existing information that can shed light on M&S’s management
techniques and staff retention tactics. To guarantee the relevance and currency of the
sources, the data-gathering period will span the last ten years, from 2014 to 2024. This
time makes it possible to analyze current patterns and advancements in M&S staff
retention tactics as well as transactional leadership methods.

Research Design
This study on transactional leadership at M&S will use a methodical approach to secondary
data analysis as part of its research strategy. The study will utilize a qualitative research
approach to investigate the diverse facets of transactional leadership in the workplace and
its impact on employee retention (Lesley et al., 2020). Reviewing previous research on
transactional leadership in the retail sector as well as M&S-specific case studies and
reports will be part of the research. This will make it possible to comprehend transactional
leadership’s theoretical underpinnings and real-world applications in the context of M&S.
Furthermore, the gathered secondary data will be analyzed qualitatively using techniques
like thematic analysis to pinpoint important themes, patterns, and insights. This analytical
method will help to better understand M&S’s transactional leadership style and how it
affects employee retention, offering insightful recommendations for leadership
development and organizational enhancement.

As part of its research strategy, this study on transactional leadership at M&S will employ a
methodical approach to secondary data analysis. The study will look into the various
aspects of transactional leadership in the workplace and how it affects employee retention
using a qualitative research approach (Lesley et al., 2020). The research will include a
review of earlier studies on transactional leadership in the retail industry as well as case
studies and reports that are relevant to M&S. This will provide understanding of the
practical applications and theoretical foundations of transactional leadership within the
context of M&S.

Data

For the data collection, secondary research will be conducted, which will involve gathering
secondary information from different sources. The research will make use of academic
books, research journals, online newspaper and magazine articles and so on. To this end,
the research will make use of trusted databases like Google Scholar as well as regular
online searches to obtain the required source materials, by using appropriate keywords
and filtering them to the needs of the research. The data gathered will be focused on
exploring the notions/issues put forward by the research aims and objectives and will be
linked to the literature review to assess the findings and test the preliminary suppositions.
In order to ensure the reliability, accuracy, validity, and credibility of the research, the
CRAAP test for the evaluation of online sources will be applied. The test will enable the
assessment of the currency, relevance, authority (trustworthiness), accuracy, and
alignment of purpose with the research topic (Abrams et al., 2022). Based on this, the most
relevant and useful sources will be selected for the research.

An interpretivist philosophy will be adopted which is based on the assumption that reality
is subjective and depends on the individual perceptions of those who observe the social
world (Žukauskas et al., 2018). A deductive research approach will be used to develop the
theory, meaning that the suppositions about the topic will be developed based on existing
theory which will be subsequently tested in the research (Woiceshyn and Daellenbach,
2018). A descriptive research design will be used to structure the research and attempt to
answer the research questions.

Analysis
The examination of secondary data regarding transactional leadership at Marks and
Spencer (M&S) provides important information about the company’s management
strategies and how they affect employee retention. Upon examining extant literature, case
studies, and industry reports, significant themes and patterns concerning the efficacy of
transactional leadership in the retail setting become apparent. The findings of the
investigation suggest that although transactional leadership has the potential to offer task
management clarity and structure, it may not be as effective in promoting employee
engagement, contentment, and sustained dedication. Research indicates that transactional
leadership might be more appropriate in routine, task-oriented settings where
performance incentives and unambiguous expectations are crucial. However, in order to
succeed, workers may need greater freedom, opportunity for personal development, and
empowerment in fast-paced, creative sectors like retail.

Analysis

The thematic analysis method will be used to interpret the secondary data. The data used
will primarily include qualitative data. Thematic analysis is a method of analysing
qualitative data by identifying common patterns in the data set and using them to develop
themes and answers to the research questions (Qualtrics, 2023).

Results
The analysis of secondary data regarding Marks and Spencer’s (M&S) transactional
leadership offers intricate insights into how it impacts employee retention and
organizational dynamics. The key conclusions suggest that while transactional leadership
can provide clarity and organization to task management, there may be limitations to its
ability to foster long-term employee commitment and enjoyment. Studies and industry
reports indicate that accountability frameworks, performance incentives, and stated
expectations—all of which align with M&S’s focus on efficiency and productivity—are
commonly associated with transactional leadership. However, this approach might
undervalue the importance of employee autonomy, creativity, and personal development—
particularly in a fast-paced, customer-focused retail environment.

The analysis also highlights some potential negative effects of transactional leadership,
including decreased levels of employee engagement, job satisfaction, and organizational
commitment. Employees may feel constrained by rigid structures and limited growth
opportunities, which can diminish morale and increase turnover rates. Positively, task-
oriented environments where responsibility and transparency are essential can benefit
greatly from transactional leadership. It ensures that employees understand their
responsibilities, receive feedback on time, and are acknowledged when they surpass
performance targets. To address the shortcomings of transactional leadership, M&S may
need to consider integrating elements of transformational leadership into its management
practices. This strategy emphasizes staff empowerment, inspiring a shared vision, and
fostering a culture of innovation and continuous progress. By embracing a more holistic
leadership style, M&S can create a productive and encouraging work environment that
promotes employee happiness, retention, and organizational success.

Ethical Considerations
To protect the privacy and well-being of participants in this study on transactional
leadership at Marks and Spencer (M&S), several ethical issues need to be taken into
account. Initially, each participant will be asked for their informed consent, which will
include a detailed explanation of the study’s objectives, the voluntary nature of
participation, and how data will be used for analysis. Throughout the study, confidentiality
and anonymity will be upheld, and data will be securely stored and only accessed by
authorized staff. Furthermore, precautions will be taken to reduce any risk of injury or
discomfort to participants, especially in qualitative interviews where delicate subjects may
be covered. Every participant will be free to leave the study at any moment and without
penalty.
Timeline
Descripti 1-2 3-4 5-6 7-8 9- 11- 13- 15- 17- 19- 21-
on/Week 10 12 14 16 18 20 22
Topic
selection
Detailed
Reading
Selection
of final
topic
Picking
of
sources
Objectiv
e
submissi
on
detailed
proposal
report
Final
draft
 Incorpor
ation of
feedback
Final
submissi
on

Results

The expected result that the research will be looking for is some form of theoretical
viewpoint that can improve leadership outcomes. These can potentially come to use as
guidance for the implementation of transactional leadership in retail organisations or
others. It will be of interest to business leaders, managers, scholars, and other
professionals.

Critical Reflection using Carl’s Framework of Reflection

Context: The lecturer’s remark on her first submission was very explicit. The presentation
and color theme were judged to be poor, although the referencing was less harshly
criticized. However, the sources were considered to have been inadequately validated.

Action: The letter of critique was addressed and I altered the paper’s presentation by
substituting the red and black ink with the formal academic layout. The second element has
been that I made sure that the sources I cited in the article are reliable and authentic
sources of information about Marks and Spencer’s staff retention and transactional
leadership.

Reflection: On second thought, I understand that the initial arrangement, presumably, had
not been quite decent considering the quality of the work. Although the color and the
thickness of the ink might have been used to draw certain aspects, it may still look chaotic
or unprofessional. For certain, a study and its outcomes make the research gain culpability
when the sources are not verified. Not only for the sake of the research but also to keep the
credibility and the integrity of the writing, one should make sure that the sources in
academic writing are from trustworthy and well-reputed sources.

Learning: To be honest, this experience has shown me how great the role of academic
writing is when proper citations, style, and presentation are taken into account. This
criticism by our teacher gave an insight into areas that could be well improved including
taking into consideration source validation and the impact of visual presentation. Hence,
from now on my academic research work will have appropriate references and formatting
conventions checked to make it academically and professionally presentable. I will also
employ some measures to enhance the authenticity and reliability of all data sources I shall
use. However, I can reach this goal by using everyone’s insights in my upcoming academic
projects.

Critical reflection

This work has allowed me to obtain a greater understanding of transactional leadership

and its concepts and impact on employee performance. The experience has been
informative and helped me develop my research skills and knowledge. This will help to
interpret the data collected in the subsequent part of the research project. The
methodology will help guide the research work efficiently and ensure that no issues hinder
the completion of the assessment.

SWOT Analysis
Strengths

- Demonstrated ability to take feedback constructively and make appropriate changes.

- Willingness to learn and improve academic writing skills.

- Identified the importance of reliable sources and proper validation.

Weaknesses

- Initial lack of attention to presentation and color themes in academic writing.

- Failure to validate sources adequately before including them in the work.

Opportunities

- Opportunity to further enhance academic writing skills through continued practice and
feedback.

- Chance to explore and implement new strategies for source validation and presentation in
future projects.

Threats

- Risk of credibility and integrity of academic work if sources are not properly validated.

- Potential for future criticism if presentation and formatting issues are not addressed
effectively.

Research Data and Design

Introduction
The well-known management approach known as “transactional leadership” is defined by

the exchanging of incentives and penalties for following instructions from the leader. Although

this style has been widely adopted by a number of businesses, including the retail industry, its

advantages and disadvantages have been discussed. The purpose of this study is to investigate

the transactional leadership style in the context of Marks and Spencer (M&S), a well-known

store, in order to comprehend its difficulties and suggest possible improvements to keep talented

employees. The primary aim of this study is to examine the major challenges of the

Transactional Leadership Style faced by the Retail Industry, with a focus on Marks & Spencer.

The specific objectives include:

1. To provide a brief introduction to the Transactional Leadership Style

2. To analyze the different characteristics of the Transactional Leadership Style as used in Marks

& Spencer (M&S)

3. To investigate the challenges of the transactional leadership style faced by M&S

4. To give recommendations to deal with the challenges within M&S

Research Strategy
Research Philosophy
This study’s research philosophy is in line with the interpretivist paradigm, which

stresses seeing social phenomena from the viewpoint of individuals who are affected. This model

acknowledges the significance of context, human experiences, and subjective interpretations in

influencing organizational dynamics, making it appropriate for researching the difficulties and

possible advancements of the transactional leadership style inside Marks and Spencer (M&S)

(Steinbacher, 2018). The goal of this study is to identify the fundamental elements determining

the efficacy of transactional leadership by delving deeply into the lived experiences of managers

and employees at M&S using an interpretivist methodology. According to this theory,

(Bachmann, 2017) organizational processes are intricate and multidimensional, necessitating a

comprehensive understanding that goes beyond straightforward cause-and-effect linkages

Research Strategy
This study used an inductive approach as part of its qualitative research methodology.

(Azungah, 2018). Because it can offer a thorough examination of the nuances surrounding Marks

and Spencer’s (M&S) transactional leadership style, qualitative research is the method of choice.

This methodology enables a thorough, contextualized knowledge of the difficulties M&S had in

implementing transactional leadership and the possible solutions through techniques including

observations, interviews, and document analysis. Rather of testing preexisting hypotheses, the
inductive technique enables the researcher to build theories and insights based on the facts

obtained. (Pearse, 2019) This method allows the researcher to discover fresh insights and

understandings that may not have been previously explored, making it ideal for investigating

intricate and varied phenomena like leadership styles. Furthermore, the inductive approach’s

flexibility enables the researcher to modify their strategies and concentrate on new information

in response to developing discoveries, guaranteeing a thorough and nuanced examination of the

research topic.

Choices
Given its importance in the retail sector, Marks and Spencer (M&S) was specifically

chosen as the case study organization. M&S is a well-known store with a lengthy history and a

significant market share, (Chen et al., 2021) which makes it an excellent case study topic for

comprehending retail industry leadership philosophies. Furthermore, M&S has encountered a

number of obstacles recently, such as shifting consumer preferences and heightened rivalry,

which presents an intriguing opportunity to examine how well transactional leadership can

handle these difficulties.

The transactional leadership style gained prominence due to its applicability in

organizational management. Understanding transactional leadership’s application and efficacy at

M&S can offer important insights for both theory and practice. Transactional leadership is a

commonly employed approach in many industries, including retail (Mkheimer, 2018) because of

its reputation for emphasizing incentives and penalties for performance, transactional leadership

is especially pertinent when discussing staff engagement and retention, two major issues that

many businesses, including M&S, encounter.

Time Horizon
This study has a cross-sectional temporal horizon, which means that information will be

gathered at a particular moment to give an overview of the difficulties M&S is currently facing

with regard to the transactional leadership style (Bolander et al., 2017). This method eliminates

the need for longitudinal data collection by allowing the researcher to capture a point in time and

conduct a targeted examination of the current situation at M&S. For this study, a cross-sectional

approach makes sense since it enables a thorough analysis of the difficulties M&S faced over a

given period of time. (Gabriel et al., 2018) Through the collection of data at a specific point in

time, the researcher can discover chances for improvement and acquire insights into the current

status of transactional leadership at M&S. A cross-sectional approach is appropriate for this kind

of investigation because it is also effective and practical.

Techniques & Procedures

Data Collection Techniques

The main method of gathering data for this research will be semi-structured interviews.

To learn more about key stakeholders’ experiences with transactional leadership at Marks and

Spencer (M&S), (Mazhar, 2021) including managers and staff, interviews will be conducted. For

this study, semi-structured interviews work best because they provide the researcher flexibility in

questions, allowing them to thoroughly examine participants’ perspectives while maintaining

interview consistency. Reviewing pertinent organizational documents, such as policies and

reports (Husband, 2020), will be done through document analysis in addition to interviews. This

will offer more information to improve comprehension of M&S’s transactional leadership and

how it affects employee retention.

Data Collection Procedures

The first step in the data collection procedure will be to identify and choose interview

subjects. (Rezzky et al., 2021) The selection of participants will be based on their responsibilities

in M&S as well as their firsthand knowledge of transactional leadership. Interviews will take

place either in-person or electronically, according on participant availability and location. With

the participant’s permission, every interview will be audio recorded. Extensive notes will be

taken throughout the conversation to capture important details and insights.

Gathering pertinent organizational documents from M&S, (Cypress, 2018) including

performance reviews, employee feedback questionnaires, and leadership manuals, is a necessary

step in the document analysis process. We will carefully go over these documents to get

information about transactional leadership and how it affects employee retention.

Data Analysis.
The data analysis for this study will take a qualitative approach with a thematic analytic

focus. One popular technique for finding, examining, and summarizing patterns (themes) in

qualitative data is thematic analysis. This methodology is ideal for this research because it

enables a thorough examination of the obstacles and future directions of Marks and Spencer’s

(M&S) transactional leadership style. Familiarization is the initial stage of thematic analysis,

(Majumdar, 2022) in which the researcher immerses themselves in the material to comprehend

the main ideas and concerns. This will entail going over the organizational documents and

interview transcripts in order to get a thorough grasp of the data. The next step in the process is

coding, which is arranging the data in a methodical way to find important themes. To do this,

pertinent data sections related to the research objectives—such as M&S’s issues and possible

improvement strategies will be highlighted.

 After the data has been coded, related codes will be grouped together to create themes. In

order to create overarching themes that encapsulate the essence of the data, this approach will

entail locating patterns and relationships within the data. After then, the themes will be examined

to make sure they appropriately represent the data and are pertinent to the goals of the study. To

find any discrepancies or holes in the analysis, this will entail comparing the themes from several

data sources. Ultimately, the themes will be clarified and examined in light of the study’s goals.

This will entail examining the ways in which the themes advance our knowledge of the

difficulties and future directions facing M&S’s transactional leadership style (Cassell, 2019).

The results from the qualitative analysis may be supplemented by quantitative data analysis in

addition to thematic analysis. This could entail analyzing quantitative data from organizational

reports or surveys using statistical software like SPSS or Excel.

Conclusion
This research has offered a thorough analysis of the difficulties and future directions facing

Marks and Spencer’s (M&S) transactional leadership style. Key insights have been obtained

from organizational document analysis and interviews with M&S managers and staff using a

qualitative case study methodology. The research has uncovered a number of obstacles that M&S

had to overcome in order to use transactional leadership, such as problems with staff morale,

communication, and flexibility. Notwithstanding these obstacles, the research has also revealed

several promising tactics for enhancing M&S’s transactional leadership efficacy. These include

establishing clearer and more regular communication procedures, offering more chances for

employee recognition and rewards, and cultivating a more friendly and cooperative work

atmosphere. It is envisaged that this research will add to the body of knowledge already available

on transactional leadership and how it is used in the retail industry, offering insightful
information to academics, professionals, and organizational leaders alike. Subsequent studies

may investigate the use of transactional leadership in additional retail settings or assess how well

alternative leadership philosophies handle comparable problems.

Reflective Evaluation
Throughout the course of my study, I have come across a number of components of my

methodology that have worked well and areas where it may be strengthened. My research

approach’s ability to clearly define its objectives and choose relevant procedures to achieve them

was one of its strongest points. Through the implementation of an interpretivist paradigm and

qualitative methodology, I was able to acquire a comprehensive comprehension of the obstacles

and possible advancements associated with the transactional leadership style at Marks and

Spencer (M&S). Additionally, choosing M&S as the case study organization gave the research a

rich and pertinent background and enabled a thorough examination of transactional leadership

methods in a practical situation. Furthermore, the application of thematic analysis to data

analysis shown efficacy in locating significant themes and patterns within the data, augmenting

the breadth and caliber of the results.

My research strategy may have been stronger in a few other areas, though. The element

of the research process that dealt with time management was one such area. I discovered that,

although I had originally budgeted time for every step of the data gathering and analysis process,

I had overestimated the amount of time needed for some activities, such interviewing and data

processing. The research process was somewhat delayed as a result, which affected how long it

took to do the task overall. I want to overcome these obstacles going forward by putting better

time management techniques into practice, such giving tasks more reasonable deadlines and
leaving enough time for unforeseen delays. In order to make sure I stay on course and submit by

the deadline, I also want to periodically examine and modify my research strategy
1
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