Transactional and Transformational Leadership

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TRANSACTIONAL & TRANSFORMATIONAL LEADERSHIP

Burns Theory of Transformational & Transactional Leadership
The idea of transformational leadership between leaders and followers was first developed by James McGregor Burns in 1978. He distinguishes between leaders who are, or attempt to be ethical and moral, and "power wielders," who are not. In an essay 20 years later, Burns returns to this idea, arguing that: -
 Transactional leaders, through their transactions, make use of "modal values such as honesty, trustworthiness, reliability, reciprocity, [and] accountability". They do not possess these leader characteristics, nor are they able to develop strong emotional bonds with followers or inspire followers to do more than they
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Deviation from procedure, methodology, and process guidelines are viewed as problems to be resolved and eliminated in order to drive predictable uniform outcomes.

4. Willfulness - striving to impose order and control on an otherwise chaotic and uncontrollable environment is a driving force behind transactional leadership

Weaknesses of Transactional Leadership
1. It can place too much emphasis on the “bottom line” and by its very nature is short-term oriented with the goal of simply maximizing efficiency and profits.
2. The leader can pressure others to engage in unethical or amoral practices by offering strong rewards or punishments.

4. If utilized as the primary behavior by a leader it can lead to an environment permeated by position, power, perks and politics.
5. Transactional leadership seeks to influence others by exchanging work for wages, but it does not build on the worker’s need for meaningful work or tap into their creativity.

Application Level
• Works where the organizational problems are simple, clear and technical in nature.
• Usually associated with the military
• Examples: Hitler and Henry Ford

TRANSFORMATIONAL LEADERSHIP
DEFINITION
It is a type of leadership that occurs when leaders " broaden and elevate the interests of their employees, and when they generate awareness and
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