Cura-Stents India Ltd., a manufacturer of high-precision cardiac stents, follows stringent international quality and sterilisation standards. The…

CA Intermediate · Financial Management and Strategic Management · RTP · September 2026
Cura-Stents India Ltd., a manufacturer of high-precision cardiac stents, follows stringent international quality and sterilisation standards. The Plant Director sets fixed production targets, strict quality benchmarks and standard operating procedures. Employees achieving targets receive monetary rewards, while those failing to meet standards face salary deductions and mandatory retraining. The Director mainly monitors performance and takes corrective action for deviations. Identify the style of Strategic Leadership illustrated and distinguish it from Transformational Leadership based on organisational change and employee motivation.

Suggested Answer and Working Notes:

The style of Strategic Leadership illustrated in the case is Transactional Leadership. Transactional Leadership focuses on designing systems, controlling organisational activities and improving the current situation. It uses the authority of the leader's office to exchange rewards such as pay and status, for desired performance. It follows a formal approach to motivation by setting clear goals with explicit rewards for achievement and penalties for non-achievement. This style is appropriate in static environments, mature industries and organisations where efficient operations and smooth functioning are essential. In the given case, the Plant Director sets clear production targets, quality benchmarks and standard operating procedures. Employees achieving the targets receive monetary rewards, whereas those failing to meet standards are penalised through salary deductions and mandatory retraining. The Director mainly monitors performance and takes corrective action, which are the key characteristics of Transactional Leadership. Difference between Transactional and Transformational Leadership Basis Transactional Leadership Transformational Leadership Organisational Change Focuses on improving the current situation, building on the existing culture and enhancing current practices. It is suitable for stable environments and efficient operations. Focuses on creating strategic change by inspiring employees with a vision. It is suitable in turbulent environments and when major organisational change is required. Employee Motivation Motivates employees through explicit rewards and penalties linked to performance. Motivates employees through charisma, vision and intellectual stimulation, encouraging them to exceed expectations and embrace innovation. Thus, the Plant Director demonstrates Transactional Leadership, as the emphasis is on achieving operational efficiency, ensuring compliance with standards and motivating employees through a structured system of rewards and penalties.

Topics: Part-A: Financial Management

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