Compare and Contrast Contemporary Perspectives About Transformational and Transactional Leadership

3236 Words Apr 7th, 2012 13 Pages
According to Webster’s School and Office Thesaurus, O’Connor. J (1995),
Transform means, ‘ to change’.
Transaction means, ’exchange, settlement, negotiation ’ From these simple definitions it is easy to understand that they are indeed different. Should a person transform something then it is expected that they change it greatly. If a person carries out a transaction then it implies that a deal is done that has mutual benefit for those involved. These very basic definitions are the basis of two types of leadership that are described in contemporary leadership literature.
Indeed Daft (2005) describes leaders as transformational when they operate as change agents and induce people to; “transcend their personal interests for the good of
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The gymnast will be guided towards perfection. However in this situation the gymnast will not develop new routines as the coach is only there to work on current routines. Transactional leadership is signified by position power and indeed is included in leader power theory. The leader has high position power because he / she has the power to give rewards and incentives and to judge worker or follower performance in order to determine when and if the rewards will be given. At first glance Transactional leadership seems superficial in that the relationship between leaders and followers does not endure, but rather only remains for the length of the exchange or transaction, however it does have a role to play in certain situations.
DuBrin (2004) p 359, explains that Transactional leadership strengthens existing structures, strategies and culture in an organization.
It can be argued therefore that it assists leaders to manage the day by day routine tasks by increasing efficiency and proficiency. As organizational change is not sought, stability within an organization and existing cultural values are promoted.

TRANSFORMATIONAL LEADERSHIP Transformational leadership will now be explained and a comparison between Transactional leadership will be made. Transformational leadership was first named by James Mc Gregor Burns in