Transactional V/s Transformational Leaders
The ability to influence people’s behaviour to achieve organisational goals is a quality of leadership. Many management professionals have proposed a variety of leadership theories that take into account characteristics, nature, and behaviour. These include the authoritarian, laissez-faire, transformational, transactional, paternalistic, and democratic views. A leadership approach that places a strong focus on the transaction between a leader and their subordinates is referred to as transactional leadership, also known as management leadership.
Conversely, transformational leadership is a style of leadership that really causes the people under you to change. In this approach, the boss collaborates with the team members to determine the intended organisational change.
Leadership via Transactions
Transactional leadership is a kind of leadership in which the leader utilises rewards and punishments to incentivize his subordinates and predetermines the objectives and aims. By outlining the procedures and managing organisational operations, it works on enhancing the organization’s existing state. This leadership style’s primary goals are to improve the company’s present rules and processes and revitalise its corporate culture.
Max Weber initially introduced the design in 1947, and Bernard Bass followed suit in 1981.
This leadership style takes a formal approach and makes use of the leader’s authority and responsibility as tools of influence. The two main instruments used by a leader to motivate his followers are rewards and penalties. For example, an employee receives credit for initiative if he meets the goal within the allotted time, and he will face consequences if the assignment is not finished on time.
Transformational leadership is a leadership style where the leader inspires his people to work for the organization’s benefit by using his passion and persuading skills. Here, the leader looks for the need to alter the culture of the company as it now exists, shares a vision with his team, combines mission and vision, and implements the change with the help of his followers.
With transformational leadership, the leader serves as both a motivator and a role model, providing the followers with inspiration, excitement, support, morale, and fulfilment. The leader encourages creativity across the whole company and motivates his team members to grow in their skills and talents.
The idea for this leadership style was initially put out by James MacGregor Burns in 1978. This leadership style’s key tenet is that both superiors and subordinates cooperate to boost one another’s spirits and drive. Meaning of Transformational Leadership: Transactional Leadership Transactional leadership is a form of leadership that uses incentives and punishments to inspire followers. Transformational leadership is a kind of leadership where the leader uses charm and zeal to motivate and inspire their subordinates.
Idea Leaders emphasise their relationship with their followers.
The needs, goals, morals, and values of the followers are prioritised by the leader.
Nature
Reactive Proactive
Ideal for
A Called Environment
Unstable Circumstances
works to enhance the company culture that is already in place.
Modifying the current culture of the company.
Style
Bureaucratic Charismatic
In a group, how many leaders are there?
Just One More than One with a Planning and Execution Focus
Innovation
Motivating instrument
attracting followers by prioritising their own self-interest.
motivating followers by emphasising the group’s interests.
Transactional and transformational leadership distinctions
The primary distinctions between transformational and transactional leadership are as follows:
Transactional leadership is a style of leadership in which followers are initiated using incentives and punishments. Under the guidance of a charismatic and enthusiastic leader, followers are influenced by transformational leadership.
The connection between a leader and his followers is crucial in transactional leadership. On the other hand, a leader practising transformational leadership places a strong emphasis on his followers’ needs, values, and beliefs.
In contrast to transformational leadership, transactional leadership is reactive.
While transformational leadership works well in tumultuous environments, transactional leadership performs best in settled ones.
Transactional leadership aims to enhance the organization’s current state. Conversely, Transformational Leadership aims to alter the current state of the company.
While transformational leadership is charismatic, transactional leadership is bureaucratic.
A group under Transactional Leadership has only one leader. Unlike transformational leadership, which permits a group to have several leaders.
Unlike transformational leadership, which encouraged creativity, transactional leadership is more concerned with planning and execution.
While some academics believe transformational leadership is superior, others believe transactional leadership is the best. Thus, the argument between the two leadership philosophies is never-ending. I don’t think there is a single conventional leadership style that works well in every situation. Thus, a company shouldn’t depend only on one kind of leadership. It must use the necessary leadership style in accordance with its requirements and the circumstances at hand.
Both transactional and transformational leadership have advantages and disadvantages, so finding the optimal type of leadership will likely come down to personal preference. The best leadership style for a given scenario will rely on it.