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Transactional vs. Transformational Leadership

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Transactional vs. Transformational Leadership

Transformational leadership theory is based on the leader encouraging followers to learn and become better individuals in the field of their expertise. In transactional leadership, the leader assumes the role of mentor, providing meaning for every act by invoking emotions and building mutual trust with the follower. One of the most enduring aspects of transformational leadership that resonates with me is the socialized charisma that flows naturally from the leader toward the subordinate (Harms & Crede, 2010). The leader assumes the position of the learner and seeks to transform attitudes, beliefs, and perception of self with the intention of seeking to improve skills for the common good of self and the organization.

Transformational leadership embraces motivation of the follower as a key ingredient toward bringing about change and increasing productivity. Leaders base their charisma on their beliefs, values, and ideals and purposes to impart these attributes to the learner. The leader identifies every follower according to their individual strengths rather than assuming one solution for all followers. Transformational leadership theory entails setting goals and inspiring followers toward achieving these goals (Harms & Crede, 2010). Ultimately, the onus is on the leader to change behavior of the learner to review their assumptions and think creatively towards improving their productivity.

Transactional leadership theory suggests that leaders focus on results while conforming to the existing organizational structures, laws and regulations. The leader ensures conformity to existing guidelines through punishments for those who contravene regulations while rewarding those who meet or exceed organizational expectations. In transactional leadership, leaders assume and exercise formal authority upon their juniors according to the organizational structures. The transactional leader is responsible routine performance of the organization through concerted group management. The leader is charged with setting criteria which will guide workers to perform according to the set organizational standards (Harms & Crede, 2010). The leader emphasizes punishment and rewards as measures of motivating the follower. Performance reviews are common ways of judging the performance of the follower.

Differences abound between transformational theory and transactional theory of leadership. While transformational leadership theory emphasizes influencing an individual or group to improve their output and become better individuals, transactional leadership emphasize management of an individual to ensure compliance with set standards. Transactional leadership does not encourage creativity since performance is measured according to compliance with existing structures. In contrast, transformational leadership anticipates changing behavior so that followers embrace new attitudes and belief in their places of work (Harms & Crede, 2010). Another notable difference between the two theories is that while transactional leaders approach features both negative and positive reinforcement of behavior amongst subordinates, the emphasis of transformational leadership is on inspiring and motivating followers to change their thought process in a way that results in better organizational and individual outcomes.

Transactional leaders tend to be reactive to situations while transformational are proactive and seek to achieve desired outcomes through deliberate effort. Similarly, while transformational leadership advocates for group progress, transactional leadership stresses the personal interests of the individuals involved. However, the two theories are similar in that they focus on ensuring positive organizational outcomes (Harms & Crede, 2010). The two theories recognize the central role played by the leader in realizing organizational objectives. Both leadership styles work best with followers who are willing to learn and improve their performance.

It is evident that different leadership styles impact employees and subordinates differently. Leaders who are interested in bringing about long term changes to individuals throughout their work engagement will embrace transformational leadership. On the other hand, transactional leadership is best in disciplined forces where creative ideas are not encouraged. Importantly, leaders must understand their skills set and determine the best leadership style that will realize organizational objectives.

Reference

Harms, P. D., & Credé, M. (2010). Emotional intelligence and transformational and transactional leadership: A meta-analysis. Journal of Leadership & Organizational Studies, 17(1), 5-17.