Final answer:
Transactional leadership is based on the use of rewards and coercive power to achieve organizational goals and maintain the status quo.
Step-by-step explanation:
The use of transactional leadership is based on the concept of using rewards and coercive power. This leadership style is characterized by a focus on supervision and achieving organizational goals through a system of rewards and punishments. Transactional leaders tend to maintain the status quo rather than seeking transformative change within an organization. They often have a managerial approach, as opposed to transformational leaders who inspire, stimulate intellectually, and take personal considerations into account while aiming to change the organization. In essence, transactional leaders use incentives and penalties to motivate their followers, employing a traditional carrot-and-stick approach to management.