These are basically two different schools of thought that have one common objective and that is the progress of an organisation. As far as effectiveness is concerned, both managerial styles have strengths and weaknesses. Transactional leadership believes in keeping the employees under a strict discipline whereas transformational leadership makes it possible for employees to enjoy the maximum authority while shouldering their responsibilities.
Different managers employ distinctly different management styles, ranging from relatively hands-off, facilitative styles to autocratic, micromanaging styles.
Managers can also employ different motivational strategies and techniques to boost employee performance or accomplish internal change.
Transformational and transactional leadership are polar opposites when it comes to the underlying theories of management and motivation. Understanding the difference between transformational and transactional leadership is helpful when pursuing a career in management. Transactional Leadership Transactional leadership styles are more concerned with maintaining the normal flow of operations.
A transactional leader generally does not look ahead in strategically guiding an organization to a position of market leadership; instead, these managers are often concerned with making sure everything flows smoothly today.
Transformational Leadership A transformational leader goes beyond managing day-to-day operations and crafts strategies for taking his company, department or work team to the next level of performance and success. Transformational leadership styles focus on team-building, motivation and collaboration with employees at different levels of an organization to accomplish change for the better.
Transformational leaders set goals and incentives to push their subordinates to higher performance levels, while providing opportunities for personal and professional growth for each employee. Advantages Transactional leaders can address small operational details quickly.
They handle all the details that come together to build a strong reputation in the marketplace, while keeping employees productive on the front line.
Transformational leadership styles can be helpful to the strategic development of a small business.
Small businesses with transformational leaders at the helm can shoot for ambitious goals, and they may achieve rapid success through the vision and team-building skills of the leader. Applications Different management styles are suited to different situations.
When it comes to front-line supervisors of minimum-wage employees, for example, a transactional leadership style can be more effective.
Shift supervisors at a fast food restaurant will be much more effective if they are concerned with ensuring all of the various stations run smoothly, rather than spending their time thinking up better ways to serve hamburgers.
On the other hand, CEOs or sales managers can be more effective if they are transformational leaders.
Executive managers need the ability to design and communicate grand strategic missions, passing the missions down to transactional leaders for implementation of the details.Transitional changes are larger than developmental changes and may be disruptive (Allen, et al., , p.
). These changes may include mergers and acquisitions or replacing and introducing major new systems and processes. Key Differences Between Transactional and Transformational Leadership. The following are the major differences between transactional and transformational leadership: Transactional Leadership is a type of leadership whereby rewards and punishment are used as a basis for initiating the followers.
Question: Discuss the difference between transitional and transformational change. Change is inevitable in an organization. Change in social systems, in particular the formal organization, may be defined as a planned or unplanned response to pressures and forces from the natural environment and mostly the activities of people.
Transactional and Transformational leadership styles have attracted the interest of many researchers in This paper gives an introductory perspective into the the difference between transformational and transactionary leadership Transactional Leadership, Transformational leadership, Charismatic Leadership.
Introduction . Jun 29, · Transformational and transactional leadership are polar opposites when it comes to the underlying theories of management and motivation. Difference Between Transactional and Transformational Leadership July 21, By Surbhi S 2 Comments Leadership is a trait of influencing the behavior of individuals, in order to fulfill organizational objectives.