Transactional leadership can be very effective, and below are three reasons. Which is NOT a reason it can be effective? Transactional leadership is easier for leaders to accomplish because it doesn't require as much energy to execute. Leaders are free to insert moments of transformational leadership into a transactional style. Transactional leadership and Laissez-faire leadership are the same, powerful leadership styles. Transactional leadership is English for the French Laissez-faire. Transactional leadership is based on employee payment of one sort or another. Look no further than social exchange theory... where the leader and employee help each other through exchanges, i.e., rewards, structure, goals.