Difference Between Transactional Leadership And Transformational Leadership

U.S. country developed the transformational leadership theory (Bass, 1985). There has been a growing interest in the intersection of leadership and ethics during the last decade. (Wren, 1998).

The difference between transactional leadership and transformational leadership is that transactional leadership refers to the purposes of each party in economic, political, or psychological ways. On the other hand, transformational leadership reflects a relationship in which leaders and followers engage with one another through a shared purpose in a ways that transform their motivation, conduct, and ethical aspiration and it goes beyond benefits that accrue to each individual through social exchange.

Transformational leadership has four behaviour dimensions which include inspirational motivation, individualized consideration, intellectual stimulation, and idealized attributes and influences. Firstly, idealized attributes and influences is the degree to which a leader shows charisma and emphasizes the importance of purpose, commitment, and the

In the preconventional stage, self-interest is dominant, and obedience to authority takes place to avoid punishment. The conventional level emphasizes a shared understanding of societal norms and values in decision-making. Postconventional moral reasoning is the third and highest level, whereby the moral decisions happen based on universal moral principles. One argued that individuals with more complex forms of Kohlbergian moral reasoning will be able to draw on more cognitively sophisticated conceptualizations of interpersonal situations. Therefore, they will be able to identify benefits that meet collective as opposed to individual needs. One predicted that leaders with higher levels of Kohlbergian reasoning would exhibit more transformational leadership than leaders with lower levels of Kohlbergian reasoning. (Turner et al,