Difference Between Transactional And Transformational Leadership

No. 1: Transactional/Transformational Leadership From the dawn of the industrialization era, businesses and organizations have emerged. Many have succeeded and continue to be leaders in their respective business sectors such as Johnson & Johnson, yet others have failed for a number of reasons. What is it then that separates the winners from the losers? Innovative technology, effective strategies, plans, superior customer service among other factors plays a significant role in the success and sustainability of any company or organization. However, at the core of a successful organization there is human resources. Human resources are the most valuable resources an organization possess. After all, it is the people who are manning the technologies,

These leaders are indeed forward-thinking with an emphasis on implementing new ideas and enthusiasm for the future of the organization. They bring about new perspectives and helps others buy into and meet the vision through positive changes. Transformational leaders motivate followers by fostering and encouraging group interest, nevertheless, individual creativity is highly encouraged. These leaders coach and mentor others into developing individual potential. They seek ways in which to resolve conflicts and solve problems, even if it requires challenging status quo. One key distinction between transactional and transformational leaders is that transformational leaders place a high importance on ethics and moral value and are usually emulated based on these traits. These leaders use integrity and fairness to motivate followers to meet their high expectations rather than directing as transactional leaders do. For these reasons, transformational leadership is more likely to lead to employee’s affective commitment. They inspire, motivate, support and encourage their followers both individually and corporately in an effective manner. Loyalty to organization and leader is almost inevitable with this leadership style if carried out properly. Though both leadership types are considered necessary depending on the situation, transformational leadership is typically regarded as the better way of managing employees because of the results it tends to achieve and the level of employee commitment and trust that arise under such leadership