Transactional and Transformational Leadership

Topics: Leadership, Transactional leadership, Management Pages: 10 (2126 words) Published: November 17, 2008

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 thought they could. Instead, transactional leaders motivate followers by setting goals and promising rewards for desired performance. Therefore, this leaders negotiated and bargained over the means. Transforming leaders employ larger "end values such as order, liberty, equality, justice, [and] community". Transactional leaders were like the bureaucrats, and charismatic heroic leaders were the transformation leaders. Believed that leadership could take one of two forma: transactional leadership or transformational leadership. Maintained that power and leadership were two distinct entities.

Questions to be Discussed: -

What radical new form or fad of leadership is transactional and transformational leadership? •What are the differences and similarities between transformational leadership and transactional leadership and which is the most effective? •What are the attributes of the transformational and transactional leader? •What are the strengths and weaknesses of transformational and transactional leadership? •What conclusions can be drawn about the usefulness of transformational and transactional leadership? TRANSACTIONAL LEADERSHIP

What is Transactional Leadership?
“Do as I say and you will get a raise”
“Meet this Quota or you will get fired”

What is Transactional Leadership?
Mutual Dependence between Leader and Follower.
Exchange of rewards by the leader for successful task performance by the followers. •Results in marginal improvement in the quantity and quality of performance. Transactional Leadership Behavior

Contingent Reward – reward or disciplining followers based on their performance. 2. Management by Exception (Passive) – not acting until problems occur 3. Management by Exception (Active) – monitoring followers for deviations from standards. 4. Laissez Faire – avoidance or absence of leadership.

Personal Characteristics
Action- Oriented
Accepts status quo

Influence Approaches
1.Enjoyment - The leader attempts to convince the target of the enjoyment he or she will experience along with compliance. 2.Coercion - The leader uses or implies threats, frequent checking 3.Reward - The leader offers favors, benefits, or future rewards for compliance Influence Approaches (Cont’d)

4. Legitimate - The leader seeks to establish legitimacy of request by claiming the authority or the right to make it, or by verifying that it is consistent with organizational policies, rule or practices

5. Reciprocity- The leader appeals based on feeling of debt (based on past favors) to the leader

Key Directional Ideas of Transactional Leadership
By Marcus S. Robinson
1.Clear boundaries - having clearly defined boundaries between role and function, technical process, span of control, decision rights, and domains of influence allow transactional leaders to control and manage interactions to drive desired business results 2. Order - for the transactional leader, everything has its own time, place, and usefulness to the process. By maintaining a highly ordered system of interaction, transactional leaders can drive predictably uniform outcomes systematically over time. Key...
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