What Is Transactional Leadership?

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Transactional leadership is a relationship where both parties do things for each other with the expectation of reciprocation. The term "transactional" refers to the fact that this type of leader essentially motivates subordinates by exchanging rewards for performance. Transactional leaders handle all the details that come together to build a strong reputation in the marketplace, while keeping employees productive on the frontline. Transactional leaders shoot for ambitious goals. Therefore, achieving short-term goals quickly. They depend on self-motivated individuals who work well in a structured, directed environment. Transactional leaders are also leaders who value order and structure. They are not for places where creativity and innovation ideas are valued. …show more content…

Transformational leadership seeks to motivate and inspire workers through, choosing to influence rather than direct others. Being a role model for followers in order to inspire them and raise their confidence in the project; challenging followers to take greater ownership for their work, and understanding the strengths and weakness of followers, allowing the leader to align followers with tasks that enhance their performance. Transformational leaders work well in organizations where change is needed. Transformational leaders are not the right fit for new organizations where no structure exists. They have integrity and high emotional intelligence.

The difference between the two are also quite large. Transactional leaders are reactive; transformational leaders are proactive. Transactional leadership appeals the self-interest of individuals, while the transformational style prioritizes group progress. However, both leadership styles are needed for guiding organizations to

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