Compare and contrast “transformational leadership” with “transactional leadership.”
Transformational leadership is often contrasted with transactional leadership. In
transactional leadership, managers use their reward and coercive powers to encourage
high performance. When managers reward high performers, reprimand or otherwise punish
low performers, and motivate subordinates by reinforcing desired behaviors and
extinguishing or punishing undesired ones, they are engaging in transactional leadership.
Managers who effectively influence their subordinates to achieve goals, yet do not seem
to be making the kind of dramatic changes that are part of transformational leadership,
are engaging in transactional leadership.
Many transformational leaders engage in transactional leadership. They reward
subordinates for a job well done and notice and respond to substandard performance.
However, they also have their eyes on the bigger picture of how much better things could
be in their organizations, how much more their subordinates are capable of achieving, and
how important it is to treat their subordinates with respect and help them reach their full
potential. Research has found that when leaders engage in transformational leadership,
their subordinates tend to have higher levels of job satisfaction and performance.
Additionally, subordinates of transformational leaders may be more likely to trust their
leaders.