What is the difference between transactional and transformational leadership styles

The people who join the transformational leader often do so voluntarily; they are inspired by his vision too and also want to see that vision becoming reality. Being a transformational leader means that you have to have impeccable character standards. While people do follow a vision, people do look at the person that is leading the vision.

If the leader has a hint of hypocrisy or lack of integrity, the leader will lose his credibility and cause a lot of people to walk away. This is because most people join the leader voluntarily, and they will leave if they stop trusting the leader. The leader needs to be a role model especially in their integrity and their responsibility. The leader must be true to himself and to others and must be ready to be accountable for all actions.

Transformational leadership is based on the concept of inspiring others to act. It is a radically influencing mindset that if implemented successfully, can yield tremendous results. Management theories deduce that there are inherently four traits that are synonymous with all transformational leaders, those being:.

Both Transactional and Transformational leadership styles share many commonalities; they just go about achieving results in different ways. Both techniques involve leaders and followers with a shared purpose to benefit from one another; both approaches are motivational in their approaches; and both leadership styles have inherent goals in mind. Transactional and Transformational leadership are both answers to the question of how to manage groups of subordinates and use psychological methods that have been developed and tested over time.

Research has also shown that both transactional and transformational leadership techniques can yield positive impacts on groups of subordinates. When it comes to the underlying theories that guide each style, these two leadership techniques are quite different from one another.

Transactional leaders tend to rely more on structure and rules to govern subordinates, while transformational leaders tend to focus on the organization as a whole.

To not speak disparagingly of transactional leadership is important here because not every situation calls for transformational leaders. Transactional leadership is often preferred in many middle management positions at companies in service or manufacturing industries are highly preferred because of the necessity of structure in those respective workplaces.

On the other hand, Transformational leadership is more fitting in industries where creativity and abstract thought are needed. It depends on the situation which leadership style will be most appropriate to it. Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Transactional and Transformational Leadership The following are the major differences between transactional and transformational leadership: Transactional Leadership is a type of leadership whereby rewards and punishment are used as a basis for initiating the followers.

Transformational Leadership is a leadership style in which the leader uses his charisma and enthusiasm to influence his followers. In transactional leadership leader, is lays stress on his relationship with followers. Conversely, in transformational leadership leader lays stress on the values, beliefs and needs of his followers. Transactional Leadership is reactive whereas Transformational Leadership is proactive.

Transactional Leadership is best for a settled environment, but Transformation is good for the turbulent environment. Transactional Leadership works for improving the present conditions of the organisation. On the other hand, Transformational Leadership works for changing the present conditions of the organisation. Transactional Leadership is bureaucratic while Transformational Leadership is charismatic.

In Transactional Leadership, there is only one leader in a group. In contrast to transformational leadership, in which there can be more than one leader in a group. Transactional Leadership is focussed towards planning and execution as compared to transformational leadership which promoted innovation.

Comments well defined……………. Transactional vs. While they are in fact opposite approaches to leadership, both offer advantages and are important styles of leadership to understand and apply in certain types of situations. A leader may naturally gravitate towards either the transactional or transformational side in their style and methods. However, the best leaders understand that both can be utilized and integrated into their overall leadership toolkit. Those who aspire to leadership in the business world should develop an understanding of the differences between the two and recognize how they can apply the appropriate style based on the situation.

A transactional leadership style follows a managerial philosophy of reinforcement and exchanges, managing employees by establishing specific goals and then offering a reward for achieving them. Transactional leaders are often found in manufacturing, where line workers are expected to hit a set production quota per shift. Another area where a transactional mindset is beneficial is sales, as the team and individual members are driving to hit specific sales goals.

Transactional leadership often goes hand-in-hand with maintaining a status quo of actions and processes that have proven successful. It tends to work best with self-motivated employees who do not seek or need inspiration from their managers or company executives, making it a leadership approach more often used at established companies.

Rather than micromanage, transformational leaders foster an independent workplace that promotes creativity, desires innovative thinking and empowers employees to make their own decisions in their work. Transformational leaders emphasize personal and professional growth and encourage all employees to think creatively in developing solutions to longstanding challenges, but they can be most impactful in leading younger employers, helping to integrate them into the company culture and giving them a sense that their work is a part of something special.

The leadership style works well in organizations or teams where the goals include developing the talent of the employees, and not just meeting an immediate production quota or sales goal.

Transformational leadership can also be the preferred approach in an environment where a product or service is new, or in an industry where innovation is key to survival. It all depends. A blended approach often works best because both leadership styles work, but they work best in in different situations, depending on the desired outcomes and on the leader.

Transactional leaders focus on organizational performance and employee supervision. These leaders are not looking much toward innovating for the future, but rather maximizing productivity in the present.