Transactional vs Transformational

Topics: Leadership, Management, Motivation Pages: 1 (276 words) Published: August 23, 2013
2.2 Question
Transactional and transformational leadership are two distinct managerial styles that seek either to maintain or change the organization. Transactional leadership is largely characterised by a desire to maintain the company’s existing culture, policies and procedures. It uses reward and punishment based system to compel employees to conform to certain behaviour’s. in contrast ,the transformational leadership style seeks to provoke change in the way the company operates. Leaders who exhibit transformational leadership are often characterised as inspiring and motivational Harnet is a transactional leader. Harnet uses disciplining power such as when an employee breaks one of his rules twice, he will fire them. Harnet also uses an array of incentives to motivate employees to perform at their best such as dropping of at their homes and take them to dinner, send personally signed birthday cards or even play golf with his managers which is not normally done by non-transitional leaders Transactional leaders are willing to work within existing systems and negotiate to attain goals. They tend to think inside the box when solving problems. Transactional leaders handle all the details that come together to build a strong reputation in the market place, while keeping employees in the frontline Transformational leaders set their goals and incentive to push their subordinates to higher performance levels while providing opportunities for personal and professional growth. Harnet doesn’t set goals for his firm, does not craft strategies for taking his firm to the next level of performance or success, does not focus on team building motivation and collaboration to accomplish change for the better. These are some of the qualities of a transformational leader which Harnet doesn’t possess
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