Transactional vs transformational leadership

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Leadership is a trait of influencing the behavior of individuals, in order to fulfill organizational objectives.
A number of leadership theories have been propounded by various management experts considering behavior, traits, nature, etc. namely, Authoritarian, Laissez-faire, Transactional, Transformational, Paternalistic and Democratic.

1. Transactional Vs Transformational Leadership

2. Agenda Introduction Definition Key Differences Comparison Chart Conclusion

3. Introduction Leadership is a trait of influencing the behavior of individuals, in order to fulfill organizational objectives . A number of leadership theories have been propounded by various management experts considering behavior, traits, nature , etc. namely, Authoritarian, Laissez-faire, Transactional, Transformational, Paternalistic and Democratic.   Transactional Leadership ( management leadership) refers, to a leadership style which lays emphasis on the transaction between leader and its subordinates.  Transformational Leadership  is a type which becomes the reasons for the transformation in the subordinates. Leadership is not a position, but an action.

4. Definition - Transactional Leadership style whereby the objectives and goals are predefined and the leader uses reward and punishment to motivate his followers is known as Transactional Leadership. It focuses on improving the current situation of the organization by framing the steps and controlling the organizational   activities. The basic purpose of this type of leadership is to revamp the existing corporate culture and to enhance current policies & procedures . The style was first proposed by Max Weber in 1947 followed by Bernard Bass in the year 1981.

5. Definition - Transformational The style of leadership in which the leader uses his influencing power and enthusiasm to motivate his followers to work for the benefit of the organization. The leader seeks the requirement for a change in the existing organization culture, gives a vision to his subordinates, incorporates mission and implement the change with the dedication of his followers. The leader inspires his people to increase their abilities and capabilities, build up self-confidence and promotes innovation in the whole organization. The main idea of this leadership style is that both the superior and subordinate work for lifting each other for improving their morale and motivation . James MacGregor Burns first proposed the concept of this leadership style in the year 1978.

6. Key Differences   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 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.

7. Key Differences   Transactional Leadership works for improving the present conditions of the organization. On the other hand, Transformational Leadership works for changing the present conditions of the organization. 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 focused towards planning and execution as compared to transformational leadership which promoted innovation.

8. Comparison Chart BASIS FOR COMPARISON TRANSACTIONAL LEADERSHIP TRANSFORMATIONAL LEADERSHIP Concept Leader lays emphasis on his relation with followers. Leader lays emphasis on the values, ideals, morals and needs of the followers. Nature Reactive Proactive Best suited for Settled Environment Turbulent Environment Works for Developing the existing organizational culture. Changing the existing organizational culture. Style Bureaucratic Charismatic No of leaders Only one More than One Focused on Planning and Execution Innovation Motivational tool Attracting followers by putting their own self interest in the first place. Stimulating followers by setting group interest as a priority.

9. Conclusion According to some, transactional leadership is best while some think that transformational leadership is better. In my opinion, there is no standard leadership style which is best suited to all the circumstances . Thus an organization should not rely on a single leadership style. It must employ the requisite leadership style as per its needs and prevalent conditions. It depends on the situation which leadership style will be most appropriate to it.

10. THANK YOU The supreme quality for leadership is unquestionably integrity. Without it, no real success is possible, no matter whether it is on a football field, in an army, or in an office. Dwight D. Eisenhower