Transformational vs. Transactional Leadership
These are different styles of leadership and though both yield positive results in business when the environment is stable. It is during an unstable business climate that one of these leadership styles outshines the other.
When a transformational leader is in effect, the organization has more adaptability and sustainability than those under the influence of transactional leadership. Due to the forced focus on previously set priorities, the transactional leader’s organization is more likely to suffer setbacks whereas the ability to adapt to change and respond to external pressures enables the transformational organisation to flourish.
Transformation leadership’s daily planning includes priorities for vision and the collective group, whereas in transactional, the priorities lie firmly with production and finances.The focus areas for transformational leading are the overall mission and the individuals within the organization as opposed to overall production and the organizational capacity to deliver within the transactional style.
The transformational leader approach to people is to feel empathy with the team members and genuinely care for them in contrast to the caring about what they are doing within the transactional method.
The transformational leader engages with the group on a personal level, discussing their hopes and dreams and sharing his aspirations, whereas the transaction leader engages on a technical level, discussing projects, performance and sharing observations.
An organization that values transformational leadership sets far-reaching, vision-based goals that inspire. The goals within a transactional orgaization are realistic, based on process
A transformational leadership uses his technical orientation sparingly although he possesses technical expertise. He uses it mostly to recognise talent and ability in others and provides opportunities for others to succeed. The transactional leader uses his expertise extensively to enhance or adjust the business and to sharpen business function and sponsor project teams.
A leader of transformational change will ensure that people have access to external information that is relevant to their business and a broad access to the vision that he espouses. A transactional leader ensures they have the proper level of information related to their particular role and a focused access to the goals and performance metrics of their work unit