Transformational and Transactional Leadership: Difference with Examples

A leader is a person who satisfies others so that they can follow him. Also, the major role of a leader is to boost the confidence of his team members. He plays the role of a motivator for his followers. Every person cannot be a good leader. For leadership, there should be a specific set of qualities in that person. It includes having the best communication skills. In communication, a leader should have the ability to convince other people. He needs to have the ability to welcome feedbacks, and ensure their application.

For the achievement of goals, the leader should be skilled. For a good leader, the change in the working environment matters to a large extent. He is always flexible towards changes. He also knows how to turn his team in the best way. Whenever companies hire someone as a leader, they check all the aspects. They cross-check his skills as well. There are different leadership styles. Two major styles include transformational and transactional leadership. Both leadership styles have their own characteristics. Different companies go for a different leadership style. They select the one that is more suitable for their working environment. Let’s discuss both these styles one by one.

1. Transformational Leadership

In transformational leadership, the main purpose is to motivate team members. That is why good communication matters a lot for this style. Without communicational skills, a leader cannot convince his members. In any company, the presence of motivational factors is very necessary. It is very obvious to get bored at the workplace. This happens due to various reasons. The company hires a transformational leader. This leader keeps employees' focus on the work by motivating them.

At an organisational level, you can see some employees do wonders. All this is because of the motivation given by their leader.

In transformational leadership, it is very important to ensure good coordination of the team members. This is an indirect way to improve general production of the company. What is the purpose of motivating employees? It is the achievement of good quality, and production.

Characteristics

In transformational leadership, the very first thing is to develop idealisation. Here leaders share, and develop core values of the company. In simple words, you can understand that every company has some code of conduct. In this code of conduct, the company mentions its core values.

A transformational leader ensures whether employees are following the mentioned terms or not. Leaders also develop a trust level through this style with employees. The CEO of a cheap dissertation writing services firm said that another role of a transformational leader is to develop confidence in the employees. The purpose behind this is to motivate them that they can achieve the goal. A transformational leader must be familiar with strong, and weak points of the members. Without knowing these factors, he cannot fulfil the requirements of transformational leadership. Transformational leadership also encourages creativity in the company. It does not have a strict strategy to follow. But it is very flexible, and allows people to do something new (Andriani et al., 2018).

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Example

Transformational leadership is very common in all sectors. A major application of transformational leadership is within the healthcare sector. Educational sectors and government agencies also encourage transformational leadership. Its use is increasing day by day. All innovation companies require transformational leadership style within their operations as well.

2. Transactional Leadership

In transactional leadership, main focus of the company is on increasing their production level. For all companies, the priority is production. Without good production, no company can exist in the long term. In short, every company’s foundation is the sale of its products. So in transactional leadership, a major purpose is to get work done through the employee. It is important management plan. For everyone, it is necessary to follow it as well. In transactional leadership, the role of a leader is to have control over all processes. The purpose of a leader is to meet deadlines at any cost.

Characteristics

There are many sets of characteristics that transactional leadership holds. For transactional leadership, it is of utmost importance to have a strong personality. Suppose you don’t focus on your personality. In this case, how can you present anything else? At leadership level, the very first thing that you present is yourself. With a strong personality, a leader can influence others well. Also, at the point of making a decision, he must be able to take hold. He should not hesitate while finalising anything. If a leader cannot take decisions, then how can his team members do the same?

Decision-making power is the skill that differentiates a leader from others. Another necessary characteristic of the leader is to set a goal for his whole team. Then its transactional leader turns the direction of his team. According to the dissertation writing services firm, a transactional leader helps in overcoming problems, and in achieving results. For a transactional leader, it is very important to understand the team. Without knowing the demands of workers, he cannot explore well. For example, when a team achieves its goal, the team members expect something as a reward. Then it’s the responsibility of a leader to understand it. When the team does its best, you should reward them. Also, the quality of product matters a lot for transactional leader (Purwanto et al., 2020).

Example

All companies that have fixed rules follow the transactional leadership style. In the case of military, you can see that they have fixed rules. They would not offer flexibility in many matters. They have the best hierarchy that is somehow critical as well. Same as many big corporations work on the same track. They also follow transactional leadership. These types of organisations have particular tracks for their processes. In such places, the promotion is based on work performances.