Leadership Vs Transactional Leadership

The leader demonstrates to the followers loyalty, trust, respect and admiration, with these the qualities of the transformational leader, they tend to work harder than originally expected that tends to have a link between effort and reward. These outcomes occur because the transformational leader offers followers something more than just working for self-gain; they provide followers with an inspiring mission and vision and gives them an identity. They believe in the organizational culture they find and specific methods of performing tasks. Transactional leaders are effective in getting specific tasks completed by managing each portion individually. According to Maslow’s hierarchy of needs, transactional leaders focus on the lower levels of the hierarchy that is the very basic levels of need satisfaction. One way that transactional leadership focuses on lower level needs is by stressing specific task performance (Hargis et al, 2001). They are more concerned with processes rather than revolutionary ideas hence under their leadership change is least expected. Unlike them, transformational leaders end up changing existing organizational cultures by implementing new ideas.

According to Sullivan and Decker (1997) transactional leadership is a traditional, goal oriented type of leadership based on the social exchange theory. Work is exchanged for rewards in

Transformational leaders and transactional leaders differ from one another in the manner that they encourage and motivate those who follow them. Transactional leaders are defined as those who focus on monetary and tangible rewards as motivational tools for the daily operations (Marquis & Huston, 2015). Transactional leadership is associated with a clear organizational structure in which managers and subordinates understand their roles and know from whom to receive reward and feedback (Cherry, 2015). This type of leadership style focuses on motivation for the here and now to accomplish daily tasks at hand. This leadership does not focus on forward thinking or growth towards the future (Gellis, 2001).

5. Transactional leadership includes a deal between the leader and his/her followers. The workers are basically doing tasks for the organization, in order to receive some kind of benefits, money, etc.

Transactional leadership is built on reciprocity, the ways in which leaders and followers influence one another, and the idea that the relationship between leader and their followers develops from the exchange of some reward, such as performance rating’s, pay, recognition, or praise (Marturano, 2004). This style of leadership does not promote a close relationship amongst the boss

Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leadership is described as making contact with others for the

Transactional leadership on the other hand was first described in 1947 by Max Weber; he first coined "rational-legal leadership — the style that would come to be known as transactional leadership — as the exercise of control on the basis of knowledge” (Spahr, 2014). According to Spahr (2014), characteristics of transactional leaders include: focus on short-term goals, favor structured policies and procedures, thrive on rule following and doing things correctly, revel in efficiency, left-brained, inflexible, and opposed to change.

Devine and Winter (2012, p. 25) state, “there is nothing magical about leadership, and there is nothing magical about teaching it or learning it.” They go on to define leadership as the ability to influence those who work for you to want to accomplish and strive to reach organizational goals and objectives. Those who influence others must understand the theories of motivation so that these theories can be applied, communicated and taught in order to motivate followers (Devine and Winter, 2012). Different from supervision, leadership implores the desires of those around you to want to succeed in meeting a goal through you the leader’s motivational abilities.

Tim Kunin is an avid hiker and traveled around the world and noticed that women were primarily struggling. He took this insight and marketed the rural women’s artistic work and made the product available on the website for the hunger site (About, 2015). With this transactional leadership he effectively made products from rural areas around the world available to the entire world. Tim was now able to transfer funds to the specific women he purchased the products off of and provided them with resources to provide for their families (About, 2015). Transactional leadership is the process of exchange that takes place between the leader, followers and colleagues of an organization (Taylor, 2014, p.17). Transaction and exchange between all of the people was extremely important for this organization because without these interactions there would have been no product and cash

“Transactional leadership is a style of leadership focused on contingent rewards of followers” (McGuire & Kennerly, 2006, p.180). Goals are set, directions are given, and rewards are used to reinforce employee behaviors associated with meeting or exceeding established goals. Followers are manipulated and controlled with rewards of praise and recognition, merit raises, and promotions, which can be given or withheld according to the employee’s performance. The outcome of such behavior is enhanced role clarity, job satisfaction and improved performance (McGuire & Kennerly, 2006).

Transactional Leadership was first described by Max Weber in 1947 and re-described by Bernard Bass in 1981. Recognized a traditional leadership, it focuses on the role of supervision, organization and group performance. Transactional leaders use an exchange model; they promote compliance of followers through both rewards and punishments. Not looking to change the future, transactional leaders are trying to keep everything the same (Odumeru & Ogbonna, 2013).

Two different leadership styles, which were first identified in 2004 by a noted scholar named Burns, are transactional and transformational leadership (Marquis & Hutson, 2009). Transactional leadership is a more traditional style of leadership and it is where the leader sets goals, gives directions, and uses a reward system to motivate employee’s behaviors related to

Transformational leadership taps into the motives of followers in order to reach their goals, while transactional focuses on the exchanges that occur between leaders and followers (Northouse, 2013). The branches of the military in general would be considered transactional leadership organizations. This type of leadership encourages followers to perform tasks at a high level in order to achieve advancement or increase in pay or rank. Conversely, transformational leadership would be focused on creating a connection between the leader and the followers, in order to perform tasks in such a way as to increase the feeling of morality in both the leader and the follower (Northouse, 2013). Panorama did not exhibit any behavior that tried to motivate Bailey to feel a connection to him. Instead, Panorama tried to intimidate, coerce, and punish Bailey to execute the tasks he was required to perform.

Transactional and transformational leadership differ. Ingram (2016) states “Different managers employ distinctly different management styles, ranging from relatively hands-off, facilitative styles to autocratic, micromanaging styles. Managers can also employ different motivational strategies and techniques to boost employee performance or accomplish internal change. Transformational and transactional leadership are polar opposites when it comes to the underlying theories of management and motivation. Understanding the difference between transformational and transactional leadership is crucial for anyone pursuing a career in management.” (Ingram, 2016). When I was a manager, I had to make sure my store operated properly and maintain sales. Sometimes I would hold contest for my workers to motivate them, Ingram (2016) states “Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leadership can be described as "keeping the ship afloat." Transactional leaders

While the transactional leadership can be seen as simple contract trade based on the interest of greed, which sometimes get confused with what we call the manager’s task. The transformational leadership seeks to satisfy high need of its subordinates, commit to aspiring human dimension to a process of stimulation and mutual development in which the selfish interests are transcended in favor of the common good.