What is the difference between transactional leaders and transformational leaders

However, the best leaders understand that both can be utilized and integrated into their overall leadership toolkit. Those who aspire to leadership in the business world should develop an understanding of the differences between the two and recognize how they can apply the appropriate style based on the situation.

A transactional leadership style follows a managerial philosophy of reinforcement and exchanges, managing employees by establishing specific goals and then offering a reward for achieving them. Transactional leaders are often found in manufacturing, where line workers are expected to hit a set production quota per shift.

Another area where a transactional mindset is beneficial is sales, as the team and individual members are driving to hit specific sales goals. Transactional leadership often goes hand-in-hand with maintaining a status quo of actions and processes that have proven successful. It tends to work best with self-motivated employees who do not seek or need inspiration from their managers or company executives, making it a leadership approach more often used at established companies.

Rather than micromanage, transformational leaders foster an independent workplace that promotes creativity, desires innovative thinking and empowers employees to make their own decisions in their work. Transformational leaders emphasize personal and professional growth and encourage all employees to think creatively in developing solutions to longstanding challenges, but they can be most impactful in leading younger employers, helping to integrate them into the company culture and giving them a sense that their work is a part of something special.

The leadership style works well in organizations or teams where the goals include developing the talent of the employees, and not just meeting an immediate production quota or sales goal.

Transformational leadership can also be the preferred approach in an environment where a product or service is new, or in an industry where innovation is key to survival. It all depends. A blended approach often works best because both leadership styles work, but they work best in in different situations, depending on the desired outcomes and on the leader. Take a look at the table below and for each category take a look at the traits for both styles. See which traits you employ the most.

The work needs to get done through your team for sure. But how you go about it is completely down to you. Your Leadership Style is critical. You can have two different managers get the same results but go about it in completely different ways.

One might leave a trail of destruction behind them and the other might leave a team of motivated and inspired people ready to take on more. Originally published: 16 June, Would your network like this too?

Please share below. Search For More. Toggle navigation. Purpose and meaning provide the energy that drives a group forward. The visionary aspects of leadership are supported by communication skills that make the vision understandable, precise, powerful, and engaging.

Followers are willing to invest more effort in their tasks; they are encouraged and optimistic about the future and believe in their abilities. Behaviors that demonstrate inspirational motivation include:. Transformational leaders act as role models for their followers. Transformational leaders must embody the values that the followers should be learning and internalizing. The foundation of transformational leadership is the promotion of consistent vision and values.

Transformational leaders guide followers by providing them with a sense of meaning and challenge. They foster the spirit of teamwork and commitment in the following ways:. The full-range leadership theory blends the features of transactional and transformational leadership into one comprehensive approach. Assess the intrinsic value of blending transactional leadership behaviors with transformational leadership behaviors. The full-range theory of leadership seeks to blend the best aspects of transactional and transformational leadership into one comprehensive approach.

Transactional leadership focuses on exchanges between leaders and followers. Transformational leadership deals with how leaders help followers go beyond individual interests to pursue a shared vision. These two approaches are neither mutually exclusive, nor do leaders necessarily exhibit only one or the other set of behaviors. Depending on the objectives and the situation, a leader may move from using one approach to the other as needed.

Management researcher Bernard Bass developed the Multifactor Leadership Questionnaire MLQ , consisting of 36 items that reflect the leadership aspects associated with both approaches. The MLQ also includes several characteristics of a more passive leadership approach known as laissez-faire.

Respondents are asked to think about a leader they work with and to rate how frequently the individual exhibits the leadership behaviors. The MLQ is used to help leaders discover how their followers perceive their behaviors, so they can develop their leadership abilities.

The questionnaire is most effective with eight to twelve respondents, as this feedback gives leaders a broad set of perspectives from the people who interact with them. Phone Number:. Enroll Now Complete the form below to get started today and take the next step in your educational journey.

Complete the form below to get started today and take the next step in your educational journey. Career Categories. Transformational vs. Transactional Leadership Transactional leadership is primarily based on processes and control, and requires a strict management structure. What is Transactional Leadership? Characteristics of a Transactional Leader According to a article about organizational leaders published in the International Journal of Science and Research, transactional leaders share the following characteristics: Replace the wants of a leader for the wants of a follower Emphasize development in setting goals, directing them and striving to control outcomes Can make important decisions Have a strong personality The benefits and rewards issue of contingency comes up frequently in discussions about transactional leadership.

What is Transformational Leadership? Riggio identifies four elements of transformational leaders: Idealized influence : Leaders hold, share and demonstrate core values and trust. Inspirational motivation : Leaders motivate workers by conveying confidence and a sense of purpose. Intellectual stimulation : Leaders provide opportunities for creativity and innovation and allow people to learn, grow and try new things. Get program guide YES! Please send me a FREE brochure with course info, pricing and more!