Transactional Leadership

And
Transformational leadership

Roll # 132
Sehar Afzal

Leadership
Leadership is the ability to influence,
motivate, and enable others to contribute
toward the effectiveness of the
organizations of which they are members

TRANSACTIONAL LEADERSHIP

Transactional style of leadership is was 1st described by Max

weber in 1947 and then by Bernard Bass in 1981.
The exchange process in which leaders clarify employee roles
and task requirements and then reward or punish followers on
the basis of their performance

Transformational leadership
Burns (1978) defines
when one or more persons engage with others in such a way
that leaders and followers raise one another to higher levels
of motivation and mortality
Sullivan and Decker (2001)
A leadership style that focused on effecting revolutionary
change in organizations through a commitment to the
organizations vision

Transactional Leadership
Transactional Leadership, also known as managerialleadership.
Transactional leadershipis a style ofleadershipin which theleader promotes
compliance of his/her followers through both rewards and punishments.
Example of transactional leadership
Coaches of athletic teams provide one example of transactional leadership.
These leaders motivate their followers by promoting the reward of winning
the game.They instill such a high level of commitment that their followers
are willing to risk pain and injury to obtain the results that the leader is
asking for.

Roll # 124
Imran Ali

focuses on

Management of the organization

Procedures and the efficiency
Working to rules and contracts
Managing current issues and problems

Dimensions of Transactional
Leadership
1.Contingent Reward

Positively reinforce appropriate behaviors

Negatively reinforce inappropriate behaviors

2.Management by Exception (MBE)

(i)Active MBE: monitor groups and correct mistakes
(ii)Laissez-Faire MBE: leave group alone and only interact
when there are challenges

Maslow's hierarchy of needs

Within the context of Maslow's hierarchy of needs
Transactional leadership works at the basic levels of need
satisfaction, where transactional leaders focus on the lower
levels of the hierarchy.
Transactional leaders use an exchange model, with rewards
being given for good work or positive outcomes.
People with this leadership style also can punish poor work or
negative outcomes, until the problem is corrected.

Characteristics of Transactional
Leadership
Occurs when leader and follower are in an exchange-

based relationship
Goal is to meet other partys needs
Relationship between leader and follower tends to be
transitory
Effective only as long as relationship is of mutual benefit

Roll# 125
Umer hayat

Characteristics of Transactional
Leadership

Contingent Reward
- Contracts exchange of rewards for effort
- Promises rewards for good performance
- Recognizes accomplishments

Characteristics of Transactional
Leadership
Active:

Management by Exception
- Searches for deviations from standards
- Takes corrective action

Passive:

Management by Exception
- Abdicates responsibility & avoids making
decisions (Laissez-Faire)
- Intervenes only if standards not met

Pros and cons of Transactional

Leadership
Pros of transactional leadership

Rewards and Incentives

This type of leadership functions on the system of giving
rewards and incentives.

People will be given remuneration once they accomplish task

and the objectives given.

People under transactional leadership will get additional reward

when they exceeded form the expectations and the leader will
also handle and work on those people with low performance.

Pros of Transactional Leadership

Structure is Clear
Subordinates under this leadership benefit a structured and clear
system.
They clearly know what is expected from them and the chain of
commands.
They know that when they completed task, follow objective and
orders they will be rewarded of something which they find to be with
great value
Short Term Goal
Under this leadership, objectives and goals were only short term
which makes them less demoralizing but fulfill easier.
Employees and subordinates were motivated by its fact that short
term goals can be easily attained.

Roll 126
Muhammad waqas

Pros of Transactional Leadership

Control Rewards
Most people cannot control job satisfaction under this
leadership, but its easy for them to settle on what value more
. There are cases that the leaders and management gives their
employees say or control on what type of reward they want
once they completed the task.

Cons of Transactional Leadership

Motivation

The transactional model of leadership assumes a very simplistic view

of motivation, which fails to account for individual differences

Transactional leadership is based on the premise that employees

will perform an action for a simple reward or to avoid punishment.

A transactional leader does not typically recognize or praise
employees who meet expectations. Because the leader views the job
as a simple exchange -- work for money, for example -- he feels no
obligation to provide praise simply when an employee upholds his
end of the deal.
Only exceptionally good performance is rewarded, and mistakes are
corrected through punishment.

Cons of Transactional Leadership

Rigidity
A transactional leader is rigid in his expectations about the

working relationship, and believes the role of subordinates is to

do as they are told.
This leader uses his formal authority to instruct others on what
to do, and is unwilling to consider anything other than the
traditional organizational hierarchy.
Consequently, subordinates should understand their place and
must not question the transactional leader's ideas.
The over-reliance on a single approach, and unwillingness to
discuss, or even consider, the ideas of others, limits a leader's
creativity and his ability to adjust if things go wrong.

Cons of Transactional Leadership

Blame
It's never the fault of a transactional leader when tasks go wrong.
Once the leader has assigned the task, that job is solely the

responsibility of the employee. If problems occur, the employee is

expected to be fully accountable for the issues.
Because such a leader is unlikely to pass out much praise, or even
a thank you, but is quick to blame the employee when things go
wrong, employees subjected to this type of leadership style may
become unhappy and dissatisfied.
This is unlikely to be a concern to the transactional leader, who
typically does not take employee feelings into account, as long as
the tasks are completed.

Roll 127
Waqas

Cons of Transactional Leadership

Reliance on the Leader
Transactional leaders must always be present to guarantee that the work

will get done properly.

Transactional leadership, by its very nature, puts leadership and the
employees on different sides.
Constant threats of punishment for failure may inadvertently reward
manipulation and game-playing by employees in an attempt to avoid
punishment. As a result, employees may be likely to be devious when the
leader is not present.
Because of the task-focused leadership approach, employees do not feel
as if they are working towards a shared goal, and they are not motivated by
the overall organizational mission.
This may mean that an employee does not feel obligated to work unless the
leader is watching.

Other Downsides of Transactional

Leadership
Low expectations
Minimal accomplishments
Low levels of satisfaction
Focus is on short-term, immediate outcomes only

Scenarios in which transactional

leadership will be used
when
Leader wants to be in control.
When there are approaching deadlines that must be met.
Relationship is short term.

Transformational Leadership
The ability to get people to want to change and to lead
change
Charismatic and visionary

Inspire followers to transcend their self-interest for the

organization

Appeal to followers' ideals and values

Inspire followers to think about problems
different ways

in new or

Common strategies used to influence followers include

vision and framing

Roll 128
Qamar dudhaal

DIMENSIONS OF TRANSFORMATIONAL
LEADERSHIP
According to Bass (1985)

Charismatic
Inspiration
Individualized consideration
Intellectual stimulation

1.Charismatic leadership
It provides subordinates with more meaning for their work

and arouse enthusiasm, excitement, emotional involvement

and commitment to the groups objective
It creates the emotional bond between leader and group
- Provides vision and sense of mission
- Instills pride
- Earns respect and trust

2.INSPIRATIONAL LEADERSHIP
This behavior includes action orientation, confidence building
and inspiring belief in the cause which often let followers to
be committed involved loyal and ready to exert extra effort
- Communicates high expectations
- Uses symbols to focus effort
- Expresses important purposes in simple ways

INDIVIDUALIZED CONSIDERATION
It implies developing employees and coaching them
Consideration for the Individual
- Gives personal attention
- Coaches
- Advises

Roll #129
kamran jaspal

INTELLECTUAL STIMULATION

It helps employees emphasize rational consideration and

challenge old assumptions
- Promotes intelligence and rationality
- Values innovative problem-solving

Characteristics of a
transformational leader
Behling and Mc Fillen (1996) defines 6 attributes
Providing followers with opportunities to experience success
Displaying empathy
Dramatizing the mission
Projecting self-assurance
Enhancing the leaders image
Assuring followers of their competency

Characteristics of transformational
leadership
Strong Transformational Leaders perform exceptionally well in

crisis
Have a vision of what a new organization can be
Strong bonds cultivated between leader and subordinates
Followers willingly subordinate themselves
Strong emotional bonds develop over time

Pros And Cons

Focused on building relationships, transformational leaders
motivate staff members through a shared vision and mission.
Through encouragement and praise, they inspire others to greater
performance levels while earning staff respect and loyalty.

Pros
Inspires teams to do and be the best
Creates highly productive and engaged teams

roll #131
Saba Pervez

Cons

Tends to overlook the details of getting a job done

Does not provide enough support to those who need to know
how to do something rather than why

Scenarios in which Transformational

leadership is used
When leaders want members to be an active part of the
organization and have ownership to it

When leaders are building a sense of purpose

When the organization has a long term plan
When people need to be motivated

Strengths and Weaknesses of

Transformational Leadership

Northouse (2001) identifies the strengths and weaknesses :

Strength are widely researched (using well-known
leaders), effectively influence associates on all levels (from
one-on-one to the whole organization), and strongly
emphasize associates needs and values.
Weaknesses have many components that seem too
broad, treat leadership more as a personality trait than
as a learned behavior, and have the potential for abusing power.

Theory Y and Theory X

Douglas McGregor'sTheory YandTheory Xcan also be

compared with these two leadership styles.

Theory Xcan be compared with Transactional Leadership
where managers need to rule by fear and consequences. In
this style and theory, negative behavior is punished and
employees are motivated through incentives.
Theory Yand Transformational Leadership are found to be
similar, because the theory and style supports the idea that
managers work to encourage their workers. Leaders assume
the best of their employees. They believe them to be trusting,
respectful, and self-motivated. The leaders help to supply the
followers with tool they need to excel

Roll 130
Sundas Guffran

Primary Differences between Transformational &

Transactional Leadership
Categories

Transactional

Transformational

Leaders source
of power

Rank, position

Character, competence

Follower reaction

Compliance

Commitment

Time frame

Short term

Long term

Rewards

Pay, promotion, etc.

Pride, self-esteem, etc.

Supervision

Important

Less important

Counseling focus

Evaluation

Development

Where change occurs

Follower behavior

Follower attitude, values

Where Leadership found

Leaders behavior

Followers heart

Secondary Differences between Transformational &

Transactional Leadership

Transformational Leader

Builds & instills vision based on

organizational values.
Enjoys good relationship with
subordinates

Leader contributes more

Employees exert greater efforts
for leader
Leaders and followers raise one
another to higher level of
motivation and morality

Transactional Leader

Leadership act does not bind

leader and followers in mutual and
continuing pursuit of a higher
purpose

Conclusive Comparison
Transactional

VS.

Transformational

Leadership is responsive

Leadership is proactive

Works within the organizational

culture

Works to change the

organizational culture by
implementing new ideas

Employees achieve objectives

through rewards and punishments set
by leader

Employees achieve
objectives through higher
ideals and moral values


Motivates followers by
appealing to their own selfinterest

Management-byexception: maintain the

status quo; stress correct
actions to improve
performance.

Motivates followers by
encouraging them to put
group interests first
Individualized
consideration: Each behavior
is directed to each individual
to express consideration and
support.
Intellectual stimulation:
Promote creative and
innovative ideas to solve
problems