Leadership & Management Reading for Lesson 9: Transactional and Transformational Leadership

Lesson 1 Reading Objectives The student will comprehend the characteristics of transactional leadership. The student will comprehend the characteristics of transformational leadership. The student will comprehend the primary differences between transformational and transactional leadership. The student will comprehend the impacts that transformational leadership can have on a unit.

Lesson 9 Discussion Objectives The student will comprehend the primary differences between transformational and transactional leadership. The student will comprehend the impacts that transformational leadership can have on a unit.

Characteristics of Transactional Leadership Occurs when leader and followers are in an exchange-based relationship. Goal is to meet the other party’s needs. Relationship between leader and follower tends to be transitory. Effective only as long as relationship is mutually beneficial.

Characteristics of Transactional Leadership Contingent reward Contracts exchange of rewards for effort Promises rewards for good performance Recognizes accomplishments

Characteristics of Transactional Leadership Management by Exception (Active) Watches and searches for deviations from rules and standards Takes corrective action Management by Exception (Passive) Intervenes only if standards are not met

Characteristics of Transactional Leadership Laissez-faire Abdicates responsibilities, avoids making decisions

Characteristics of Transformational Leadership Leaders strong in this quality perform exceptionally well in situations of crises. They have a vision of what a new society or organization could be. Strong bonds are cultivated between leader and subordinates. Followers willingly subordinate themselves. Strong emotional bonds develop over time.

Characteristics of Transformational Leadership Charisma Provides vision and sense of mission Instills pride Gains respect and trust Inspiration Communicates high expectations Uses symbols to focus efforts Expresses important purposes in simple ways

Characteristics of Transformational Leadership Intellectual stimulation Promotes intelligence, rationality, and careful problem solving Individual consideration Gives personal attention Treats each employee individually Coaches Advises

Primary Differences between Transformational & Transactional Leadership Transformational Leader Builds & instills vision based on organizational values. Enjoys good relationships 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

Primary Differences between Transformational & Transactional Leadership Categories Transactional Transformational Leader’s 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 Leader’s behavior Follower’s heart

Impacts of Transformational Leadership on Unit Image Recruiting Selection Promotion Transfer Development Training Approaches to training Leadership education Job design and assignment Organizational structure