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Relational Vs Transformational Leadership

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First off, equity theory is when people are motivated to excel when they know they are treated with fairness, especially among other coworkers. The quality of fairness can be seen very differently among the employees. They believe equity depends on the quality of someone's work and how known they are. For example, CEO's who earn more money is because they are great at the job ; therefore, they get greater recognition. Some components include inputs and outcomes, along with referents which is the people someone looks at to determine if they are being treated legitimately. Next is expectancy theory, in which employees are motivated to a certain extent depending if they believe the good performance will lead to great rewards. Since not everyone …show more content…

Transformation leadership fixates on the group's mission and gets employees to see beyond their own needs and self-intrigues for the good of the group. In other words, this gets the group to work in unison instead of everyone only worrying about themselves. Unlike this leadership, transactional leadership is when followers are rewarded if they had a good performance or punished when they do a bad performance. One difference is that with transformational the group works as one; therefore, the companies' success is essentially also the followers success. This approach is efficient to improve the company's performance. On the other hand , transactional leadership is not as efficient, since it puts to much focus on threats and discipline that it does not improve performance. Furthermore, transformation has four components which include charismatic leadership, inspirational leadership, intellectual stimulation, and individualized consideration. These components help followers to look up to the leaders as role models, to encourage creativity and motivation, and for leaders to pay attention toward the followers' individual needs. These components help the company be successful in the long run. On the other hand transactional does not work for the long run, it is better for short

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