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Transactional Leadership
• Definition: It is an exchange process in which
leader clarify employee roles, task requirements and then reward or punish followers based on their performance. This style can also be mentioned as telling style.
Assumptions of Transactional Leadership
• Employees are motivated by reward and punishment.
• The subordinate have to obey the orders of his supervisor.
• The followers/subordinates are not self motivated. They have to be closely monitored and controlled to get work done.
Implications
• The transactional leadership emphasize detailed and short-term goals, and standard rules and procedures.
• Do not make an effort to enhance followers’ creativity and generation of new ideas.
• This kind of leadership style may work well where organizational problems are simple and clearly defined .
Implications Cont..
• The transactional leaders tends to be highly directive and action oriented and their relationship with followers tends to be transitory and not based on emotional bonds.
• The Only transaction between leader and follower is the money which the follower receive for their compliance of effort.
Transformational Leadership
• Transformational Leadership is a leadership style where one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality.
4 I's of Transformational Leadership
Idealized Influence Leader serves as an ideal role model for followers and is admired for this
Inspirational Motivation Transformational leaders have the ability to inspire and motivate followers
Individualized Consideration Transformational leaders demonstrate genuine concern for the needs and feelings
of followers which brings out the best efforts from each individual
Intellectual Stimulation Transformational leaders challenges followers to be innovative and creative
Transactional vs TransformationalLeadership
Categories Transactional TransformationalLeader’s source of power Rank, position Character, competence
Follower reaction Compliance Commitment
Time frame Short term Long term
Rewards Pay, promotion, etc. Pride, self-esteem, etc.
Supervision Important Less important
Counseling focus Evaluation Development
Where change occurs Follower behavior Follower attitude, values
Where “leadership” found Leader’s behavior Follower’s heart
Transactional Vs Transformational Leadership
Leaders search for adaptive solutions to engage hearts and minds in the change process
Leaders often use technical knowledge to determine the change process
Leaders possess good visioning, rhetorical and management skills, to develop strong emotional bonds with followers
Leadership depends on the leader’s power to reinforce subordinates for their successful completion of the bargain
Leaders create learning opportunities for their followers motivate and stimulate followers to solve problems
Leaders motivate followers by setting goals and promising rewards for desired performance
Leaders are distinguished by their capacity to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers
Leaders rely on standard forms of inducement, reward, punishment and sanction to control followers
Leadership is proactive and forms new expectations in followers
Leadership is responsive and its basic orientation is dealing with present issues
Leaders arouse emotions in their followers which motivates them to act beyond the framework of what may be described as exchange relations
Leaders are aware of the link between the effort and reward
Transformational Leadership Transactional Leadership
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