Transactional and Transformational Leadership

Dr Emma Roberts

Bass & Avolio

Link goals to rewards and provide various kinds of rewards for successful performance.

Actively monitor the work of your subordinates, watch for mistakes and take corrective action to prevent mistakes.

Intervene only when standards are not met and then use punishment to improve performance.

Provide an environment where the subordinates get many opportunities to make decisions and avoid making decisions yourself.

Which of the following leadership behaviours do you use?

Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually agreed upon goals, and provide various kinds of rewards for successful performance.

Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from rules and standards and taking corrective action to prevent mistakes.

Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is not as per the expectations. They may even use punishment as a response to unacceptable performance.

Laissez-faire: The leader provides an environment where the subordinates get many opportunities to make decisions. The leader himself abdicates responsibilities and avoids making decisions and therefore the group often lacks direction.

Dimensions of Transactional leadership

Transactional leadership focuses on the basic management process of controlling, organizing, and short-term planning.

Their power comes from their formal authority and responsibility in the organization. The main goal of the follower is to obey the instructions of the leader.

The leader believes in motivating through a system of rewards and punishment

Transactional leadership(not to be confused with Transactional Analysis)

Transactional v leadership

Stable situations:Leader can identify needs of subordinatesStability means context/ task can be structuredIn return, subordinates will exert effort towards leaders goals.Keeps things ticking over

Fluctuating situations:Leader needs vision of what needs to be doneLeader can communicate this vision, energise and inspire.

Four ‘I’sIndividualized Consideration (IC) Intellectual Stimulation (IS)Idealized Influence (II)Inspirational Motivation (IM)

Bass, B. (1990) From Transactional to Transformational Leadership Organisational Dynamics 18 (1) p19-31

Transformational leadership

Leader behaviour can be calm, reflective, deliberate and anticipate future contingencies.

Leadership must be exercised without the support of strong emotion or obvious necessity and must combat the indifference that frequently accompanies lack of stress and excitement.

Stable conditions call for self-restraint and deliberation.

Stable situations

Transactional v leadership

Stable situations:Leader can identify needs of subordinatesStability means context/ task can be structuredIn return, subordinates will exert effort towards leaders goals.Keeps things ticking over

Fluctuating situations:Leader needs vision of what needs to be doneLeader can communicate this vision, energise and inspire.

Four ‘I’sIndividualized Consideration (IC) Intellectual Stimulation (IS)Idealized Influence (II)Inspirational Motivation (IM)

Bass, B. (1990) From Transactional to Transformational Leadership Organisational Dynamics 18 (1) p19-31

Transformational leadership

Bass, B. (1990) From Transactional to Transformational Leadership Organisational Dynamics 18 (1) p19-31

Individualized Consideration (IC) - Transformational leaders demonstrate genuine concern for the needs and feelings of followers. This personal attention to each follower is a key element in bringing out their very best efforts.

Intellectual Stimulation (IS) - the leader challenges followers to be innovative and creative. A common misunderstanding is that transformational leaders are "soft," but the truth is that they constantly challenge followers to higher levels of performance.

Idealized Influence (II) - the leader serves as an ideal role model for followers; the leader "walks the talk," and is admired for this.

Inspirational Motivation (IM) - Transformational leaders have the ability to inspire and motivate followers. Combined these first two I's are what constitute the transformational leader's charisma.

Dimensions of Transformational leadership

1. I would never require a follower to do something that I wouldn't do myself.

2. My followers would say that they know what I stand for.

3. Inspiring others has always come easy to me.

4. My followers have told me that my enthusiasm and positive energy are infectious.

5. My followers would say that I am very attentive to their needs and concerns.

6. Even though I could easily do a task myself, I delegate it to expand my followers' skills.

7. Team creativity and innovation are the keys to success.

8. I encourage my followers to question their most basic way of thinking.

Which of the following are true about your leadership behaviour?

Intellectual Stimulation7. Team creativity and innovation are the keys to success.

8. I encourage my followers to question their most basic way of thinking.

Inspirational Motivation 3. Inspiring others has always come easy to me.

4. My followers have told me that my enthusiasm and positive energy are infectious.

Transformational Leadership(Add up your Yes answers)

Idealized Influence1. I would never require a follower to do something that I wouldn't do myself. 2. My followers would say that they know what I stand for.

Individualised Consideration5. My followers would say that I am very attentive to their needs and concerns.

6. Even though I could easily do a task myself, I delegate it to expand my followers' skills.

Optimal Leadership Profile

More time using Transformational leadership.

Less time using laissez faire, rewards and monitoring styles.