An evaluation of the impact of transactional leadership style in motivating employees at a construction site in Cape Town

Abstract

This study examines the influence of transactional leadership style on employee motivation within the context of a construction site in Cape Town. Transactional leadership, characterized by a focus on the exchange of rewards and punishments for performance, has been widely studied in organizational settings but is relatively underexplored within the construction industry, particularly in the South African context. Drawing on a mixed-methods approach, including surveys and interviews, data were collected from employees and management personnel at a construction site in Cape Town. The findings indicate that transactional leadership behaviors, such as setting clear goals, providing feedback, and rewarding achievements, positively impact employee motivation within the construction site. Employees perceive transactional leadership as providing structure and clarity, which enhances their understanding of expectations and fosters a sense of accountability. Moreover, the contingent reward aspect of transactional leadership, wherein rewards are tied to performance, serves as a motivating factor for employees striving to meet or exceed expectations. However, the study also identifies limitations of transactional leadership within the construction context. Employees express a desire for greater autonomy and empowerment, suggesting that a purely transactional approach may not fully satisfy their intrinsic motivational needs. Additionally, the reliance on extrinsic rewards may lead to short-term motivation without necessarily fostering long-term engagement or commitment. In conclusion, while transactional leadership plays a significant role in motivating employees at the construction site, its effectiveness may be enhanced by incorporating elements of transformational or servant leadership to address intrinsic motivational factors and promote a more collaborative and empowering work environment. This study contributes to the growing body of literature on leadership styles in the construction industry and provides insights for practitioners seeking to optimize employee motivation and performance in similar contexts.