Enriching Transactional Leadership with Public Values

Abstract Past studies raise concerns that generic transactional leadership has low effectiveness and may reduce intrinsic motivations and commitments in the public sector. This study introduces public value‐focused transactional leadership (PVTL) as transactional leadership that makes public values central in employee job expectations and rewards and fills gaps in transformational leadership. A dyadic study finds that managers using public values in transactional leadership have significantly greater leadership effectiveness than managers using only generic transactional leadership. PVTL has comparable effectiveness as transformational leadership and adds a process for strengthening motivations through public values. Recommendations are made for application and further research into this distinctive public sector leadership style.