Transformational Leadership v Transactional Leadership

Transformational Leadership v Transactional Leadership

Terms

Transformational Leadership v Transactional Leadership

What is Transformational Leadership? (Transformative leadership)

What is Transactional Leadership?

A quick and easy guide to the difference between Transformational Leadership and Transactional Leadership.

Transformational Leadership v Transactional Leadership, what is the difference? Below is a handy chart that explains the difference between Transformational Leadership and Transactional Leadership. Note Transformational Leadership is also known as Transformative Leadership:

 

Transactional Leadership Transformational Leadership
Transactional leadership also known as managerial leadership, tend to focus on supervision, organisation, and driving performance. This a style of leadership usually promotes compliance through both rewards and punishments. The idea is that work is a direct transaction for money and reward and therefore performance can be manipulated through increasing the transactions (rewards) and discouraging low performance behaviours through punishments such as withdrawing support, a bad appraisal, a lower or no bonus for example. Transformational leadership is where a leader works with people across the organisation and with external stakeholders to help identify what change is needed, creating a vision to guide change and creating commitment to the organisation, its values and any changes needed. It is more of a facilitative style of leadership that aims to build trust, involvement and commitment to the aims of the organisation.

 

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Disclaimer: This is a research review, expert interpretation and briefing. As such it contains other studies, expert comment and practitioner advice. It is not a copy of the original study – which is referenced. The original study should be consulted and referenced in all cases. This research briefing is for informational and educational purposes only. We do not accept any liability for the use to which this review and briefing is put or for it or the research accuracy, reliability or validity. This briefing as an original work in its own right and is copyright © Oxford Review Enterprises Ltd 2016-2019. Any use made of this briefing is entirely at your own risk.

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