Certified Professional in Talent Development (CPTD) 2025 – 400 Free Practice Questions to Pass the Exam

The correct answer focuses on transactional theories, which are particularly associated with systems of rewards and punishments as a key mechanism for motivating individuals. In transactional leadership, the relationship between leaders and followers is based on exchanges—leaders provide rewards (such as recognition, bonuses, or promotions) for compliance or performance, and followers fulfill their roles as a response to these incentives. This theory highlights the importance of clear agreements and understanding the consequences of behaviors within the workplace.

In contrast, other theories like behavioral theories emphasize the influence of observable actions and the environment on behavior, rather than the structured exchanges of rewards and punishments. Situational theories focus on the context and adaptability of leadership styles based on varying circumstances rather than the strict reward and punishment system. Servant leadership values the well-being of team members and focuses on serving others, which does not centrally involve the transactional exchange of rewards for performance. Therefore, transactional theories distinctly align with the principle of using a system of rewards and punishments in leadership and motivation.