Examination for Professional Practice of Psychology (EPPP) Practice Test

A transactional leader is LEAST likely to agree with which statement?

1. Employee behavior is goal-directed

2. Contingent rewards effectively motivate performance

3. The best idea for a boss is to adopt a laissez-faire leadership style

4. Each employee will function best when viewed as an individual

The correct answer is: The best idea for a boss is to adopt a laissez-faire leadership style

The reason the choice about adopting a laissez-faire leadership style is the least likely to be supported by a transactional leader is that transactional leadership is characterized by a focus on structure, rewards, and clear expectations in managing team performance. Transactional leaders typically thrive in environments where they can provide specific guidance and motivate employees through rewards and established protocols. A laissez-faire leadership style, on the other hand, involves a hands-off approach, where leaders provide minimal direction and allow employees significant autonomy. This contrasts sharply with the transactional philosophy, which relies on active management and oversight to ensure that employees are achieving defined goals. By prioritizing a structured approach, a transactional leader is unlikely to agree with the idea of stepping back and allowing employees to operate without sufficient guidance or accountability. In contrast, the significance of employee behavior being goal-directed and the effectiveness of contingent rewards aligns well with the transactional leader’s framework, as these components are integral to motivating and influencing employee performance. Additionally, the recognition of individualization in approach can exist within a transactional framework, as leaders may still see value in tailoring the reward system to meet individual employee needs while maintaining a performance-driven focus.