Transactional Leadership : Transactional And Transformational Leadership

Transactional Leadership : Transactional And Transformational Leadership

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Transactional. Aimed at keeping organizations running efficiently, transactional leaders control an organization and followers with rules and procedural compliance, while maintaining stability and efficiency within the organization. Moreover, transactional leadership is leader-follower relationship model that uses trust and a rewards system to accomplish tasks and attain goals. Transactional leaders assert the order for task completion, how to complete those tasks, monitor performance, and offer rewards or consequence based upon satisfaction of performance.
Studying the Pakistan banking industry, Zareen et al. (2014) reports transitional leadership has a greater impact on employee motivation as opposed to laissez-faire and transactional leadership. In examining spiritual leadership within organizations, Fry (2003) notes that transitional leadership is the root of most leadership styles. Cunningham et al. (2015) noted transactional leadership is best suited for smaller projects. Particular to transactional and transformational leadership, Nanjundeswaraswamy and Swamy (2014) led a study of literature to investigate the interrelatedness of leadership styles, organizational commitment, and work satisfaction and results suggest leadership styles can influence the quality of work life.
Transactional leadership is leader-follower exchange, and research indicates this style has the strongest impact on follower motivation as it elicits a greater commitment towards organizational goals (Nanjundeswaraswamy & Swamy, 2014; Zareen et al., 2014). Build on trust, transactional leaders communicate what to do, how to do it, and monitor performance. Giltinane (2013) suggested transactional leadership is task-orientated and is effective in...


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...ders fosters inspiration to influence and engage followers to accomplish more than what the follower planned to accomplish or work harder to achieve common goals (Fry, 2003; Zareen et al., 2014). Transformational leaders try to develop the followers’ full potential by creating a connection to increase the level effort beyond a status quo (Bacha, 2014; Fry, 2003; Zareen et al., 2014). Furthermore, transformational leaders use a tacit commitment to provoke a higher level of thinking to influence and transform performance (Arslan & Uslu, 2014; Bacha, 2014; Zareen et al., 2014). Researchers also indicate that as followers gain congruency in aligning their own success with organizational values and goals, followers are more willing to make a positive contribution, which in turns make those followers more valuable to the organization (Bacha, 2014; Zareen et al., 2014).

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