Nov 18, 2015
Why effective leadership is like yogurt…you must practice what comes naturally to you.
For my post today I want to discuss the differences between the transformational leader and the transactional leader.
I have worked under both styles and have found that the leader who demonstrates the style that comes most naturally to them is a highly effective leader.
Here’s my take on the key differences:
Transformational Leaders
The transformational leader instinctively trusts more, and is generally more patient. Their communication style is based on listening, questioning and sharing. They share things about themselves, their knowledge and their hopes for the future.
They see themselves as teachers, coaches, mentors. They see their followers as works-in-progress, and that one day their followers will become leaders themselves. They have an obsession with their own legacy, they want to be quoted, they want to be referenced, and they want to be remembered. Their other obsession is making their followers feel good about themselves.
Transactional Leaders
The transactional leader tends to look for quick measurable returns from their followers. They are not impatient; they just want to see results, good or bad, sooner rather than later. They like to ‘fix’ their followers, they like to be in control, informed and updated. They focus on winning the respect of their followers by being ‘first in-last out’, lauding their own achievements and by telling as oppose to selling. Their communication style can be likened to an ATM machine, they record everything, what you saved you will get back, nothing more, and nothing less. Your PIN number must be factual, to the point and evidence based. Their primary obsession is to bring change; they often bring the rain with the promise of sunshine later.
It is important to understand that there is no wrong style; each has its strengths and its weaknesses. The trick is to demonstrate the style that comes most naturally to you; you’re hard-wiring, your values, and your beliefs.
Some other views
Transactional Leadership – Where transformational leadership believes that leaders are followers, transactional leaders believe that workers are motivated by reward and punishment. Rewards demonstrate that employees are following orders whereas a punishment demonstrates that the employees are not.
Unlike the transformational leader, transactional leaders do not inspire personnel. As the prime purpose of an employee is to do what they are told to do, then there does not seem to be sufficient reason for team members to perceive the transactional leader as a role model.
The problem with transactional leadership is that it has limited uses and “it restricts the leader-follower relationship…leaving little room for charisma or inspiration” (R.Hood 2011).
Transactional versus Transformation Leadership – Transactional leaders allow personnel to see rewards in return for productivity. Conversely they learn that lack of productivity is met with punishment. In transformational leadership, leaders provide their employees with commitment, dedication and respect; working with them to develop their skills. Transformational leaders aim to take their followers to the next level and transcend beyond their own personal limits.
Bass et al (2002) point out the differences between transactional and transformational leaders in the following table.
In summary Transactional Leadership is a management theory, whereas Transformational Leadership is relationship theory.
To learn more about our leadership programs please have a look at our Management and Leadership courses.
Until next time, take good care, be happy, be relaxed, be yourself and keep it real.
Stan Thomas.
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