Chapter no. 2 Literature reviewa. Transactional Leadership According to the news, the foundation stone of transactional leadership was laid on the leadership theory of leader-member exchange. According to Pastor and Mayo (2008) transactional leadership can be identified through leader-follower exchange. It demonstrates that benefits, incentives, privileges and rewards are provided only under one condition when employees work in accordance with the objectives, values, norms and culture of the organization and give the required commitment. Odom and Green (2003) proposed that transactional leadership reflects primarily on core content. In other words, transactional leaders focus more on achieving desired outcomes through organizational processes that include reward practices, implementation of organizational strategies, plans, and workflow procedures (Sarros and Santora, 2001). But that doesn't mean transactional leaders can't adapt a moral mindset. Kanungo (2001) deduced that transactional leaders believe that means are demonstrated only by ends. In other words, transactional leaders may adopt a Machiavellian belief in organizational life. If we were to critically analyze the primary rules and standards of leadership elaborated in Machiavelli's “The Prince,” it would be surprising to believe that they bear no relation to the method by which transactional leadership is broadly defined. Transactional leaders necessarily do not view people as vessels with meaning. Otherwise, any kind of debauchery can be rendered by any leader-member exchange. Aronson (2001) describes that moral leadership can be ascertained in several ways. He stated that in reality utilitarian beliefs are articulated by transactional leaders. Kanungo (2001) concludes that...... halfway through the article......on”, Academy of Management Journal, vol. 38 n. 5, pp. 1442-1465. The role of managerial values ​​and goal orientation”, Leadership & Organization Development Journal, vol. 29 no. 4, pp. 340-58. transformational leadership”, Journal of European Industrial Training, vol. 15 no. 4, pp. 9-16. vision”, Organizational Dynamics, vol. 18 n. 3, pp. 19-31.Vol. 29 No. 2, pp. 115-34. Walumbwa, OF (2002), “The relationships between leadership styles, cultural orientation, departments”, Journal of Nursing Management, Vol. 2 No. 5, pp. 225-34.Waveland, Illinois.Westley, F. and Mintzberg, H. (1989), “Visionary Leadership and Strategic Management”, Strategic Management Journal, Vol. 10 No. 1, pp. 17-32. Wheatley, M.J. (2002), Turning to Each Other: Simple Conversations to Restore Hope in Yukl, G. (2006), Leadership in Organizations, 6th ed., Prentice Hall, Upper Saddle River, New Jersey.