Transactional Vs. Transactional Leadership Theory

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.

Manager’s Lack of Knowledge and Training. A manager’s lack of knowledge about performance management process may negatively impact this process. There is neither formal nor informal training on properly executing our Performance Management process. For example, without training managers may lack understanding in setting performance goals. In addition, managers may not be able to distinguish between responsibilities that the subordinate has control over and responsibilities the subordinate does not have control over; therefore, there is not significant correlation between goals and desired result. The manager may use this process and its evaluation function reprimand performance, rather than development. Also, lack of knowledge about how each step is interconnected the process may eliminate meaningful

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.

Management by exception can be a useful tool for keeping budgets from spiraling out of control. Companies benefit when managers implement cost-saving and efficiency measures as a result of investigating variances.

Bragg, Steven. "What is management by exception? - Questions & Answers - AccountingTools." What is management by exception? - Questions & Answers - AccountingTools. N.p., 5 June 2013. Web. 28 Feb. 2014. .

David C. Shaw prepared this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The

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 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 is defined by different components: contingent reward, management by exception, and laissez-faire leadership. These components help define, but are not always prominent. Contingent reward describes the transaction

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

At one point or time everyone has dreamed of that perfect leader. Whether or not we achieve that status can vary with many different situations. Over the short amount of time attending this class we’ve learned about many different leadership behaviors. One behavior that hit home to me and I find important is management by exception-active (MBE-A).

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

The success or failure of an organization falls back on the top manager (Jones & George, 2011).

Effective supervision is a key component of managing for performance. Performance monitoring determines whether specific results were achieved, the key role of the supervisor is to ensure that organizational policies, practices and goals are implemented. Effective supervision supports a collaborative approach that builds on employees’ strengths, resulting in superior outcomes. Effective supervision promotes continuous learning and facilitates skilled growth and development through self-assessment, self-awareness as well as identifying of strengths, challenges and