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Transactional and Transformational Leadership

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The passage discusses transactional and transformational leadership styles. Transactional leadership focuses on contingent rewards and management by exception using rewards and punishments to motivate followers. Transformational leadership inspires followers to achieve higher levels of performance and change.

The different forms of transactional leadership discussed are contingent reward and management by exception (MBE), which can be active MBE where mistakes are corrected or laissez-faire MBE where groups are left alone.

Qualities of transactional leadership mentioned include contingent rewards and management-by-exception using punishments and rewards, being directive and action-oriented, and thinking within existing systems to solve problems.

Transactional and

Transformational Leadership

Masooma zainab
awan
5TH PROF

TRANSACTIONAL LEADERSHIP
Transactional leadership is defined as:
The influence of a leader toward his subordinates using reward and punishment as a form of
motivational medium in exchange for productivity, effective goal, or task accomplishments.
Transactional leadership is also called
as true leadership style and managerial
leadership
promotes compliance
Give something to get something.
.

FORMS OF TRANSACTIONAL
LEADERSHIP:
Contingent Reward
Positively reinforce appropriate behaviors
Negatively reinforce inappropriate behaviors
Highly ineffective and/or satisfying to all

FORMS OF TRANSACTIONAL
LEADERSHIP:
Management by Exception (MBE)
1.Active MBE: monitor groups and correct mistakes
2.Laissez-Faire MBE: leave group alone and only interact
when there are challenges

QUALITIES OF TRANSACTIONAL
LEADERSHIP:
Contingent reward and management-by-exception.
Reward and punishments
Directive and action-oriented.
Willing to work within existing systems
They tend to think inside the box when solving
problems

Implications

The transactional leadership emphasize detailed and short-term goals, and


standard rules and procedures.
May work well where organizational problems are simple and clearly defined
The transactional leaders tends to be highly directive and action oriented.
The Only transaction between leader and follower is the money which the
follower receive for their compliance of effort.

ADVANTAGES OF TRANSACTIONAL
LEADERSHIP:
Structure is Clear
Short Term Goal
Control Rewards and incentives
Improves organizational efficiency

DISADVANTAGES OF TRANSACTIONAL
LEADERSHIP:
Promotes a rigid hierarchy.
Higher thinking skills level cant be utilized
Limits its followers to engage with higher level of professional
environment.
Focus is on short-term, immediate outcomes only
No self motivation
Leaders entrapment in daily managerial activities
Make organization stagnant

TRANSFORMATIONAL LEADERSHIP:
The ability to get people to want to change and to
lead change.
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.

Qualities of
Transformational Leadership
Inspiration and Charisma
Go beyond self interests for the good of the whole
Transforms the environment and the
people in it
Focuses on building an appropriate
context and on enhancing the
relationships of people within the
system

Components of trnsformaional leadership:


Idealized influence
Leader serves as an ideal role model for followers and is admired for this
Inspirational motivation
Leaders have the ability to motivate and inspire followers
Individualized consideration
Leaders demonstrate genuine concern for the needs and feelings of followers
which brings out the best efforts from each individual
intellectual stimulation
Leaders challenges followers to be innovative and creative

Inspiration and Charisma:

Builds and sustains an emotional bond that


overcomes the psychological and
emotional resistance to change

TRANSFORMATIONAL LEADERS:

Karen Gilles Larson


Martin Luther King
Winston Churchill
Bill Gates
Mother Teresa

Advantages of
Transformational Leadership:

Steers companies onto better course of action


Provide significant alignment with external environment
Vision
Inspiration (Motivation)
Corporate Learning
Self motivation

Disadvantages of
Transformational Leadership

Dependence on the Leader


Draining Personnel
Power and Manipulation
Lack of Check and Balance

To Rule or Govern is easy To


Lead is Difficult.

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