Difference Between Transactional And Transactional Leadership

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According to Odumeru (2013), transactional leadership, known as managerial leadership, focuses on the role of supervision, organisation, and group performance; transactional leadership is a style of leadership in which the leader promotes compliance of his followers through both rewards and punishments. Within the context of Maslow 's hierarchy of needs, transactional leadership works at the basic levels of need satisfaction, with rewards being given for good work or positive outcomes. These types of leaders focus on contingent positive reinforcement or contingent negative reinforcement, Transactional leaders contingent rewards and punishments such as praise and suspensions.The qualities of the Transactional leader use reward and punishments …show more content…
Rather than motivating employees through intrinsic influences the way transformational leaders do, transactional leaders use tangible rewards and punishments to enforce order, regulations and hierarchy within the organisation (The Leadership Cocktail, 2016). Transactional leadership techniques are most effective in environments where creativity from the workforce is not required. Moreover, transactional leadership approach needs to be implemented in cases where quick, small scale change is required as argued by Burnes (2004). However, this type of leadership style seems to be less and less popular as the time goes on. Bass (1991) argues that transactional leadership can in many instances lead to mediocrity at best. Especially if the leader mainly depends on, what Bass describes as, passive …show more content…
“This transformational leader was posited as a contrast to the transactional leader who exchanges rewards, contingent upon a display of desired behaviors” (Lowe et al., 1996). This suggests that since transformational leadership is a direct opposite of transactional leadership, it is replacing transactional leadership as a more effective substitute. Leithwood and Jantzi (1990, as cited in Macbeth, 2003) suggest that transformational leadership is a dynamic concept when compared to transactional leadership’s steady state, as it is always transforming organisations and cultures within them. Transformational leaders could create an ‘organisational hierarchy’ based structure within the company. This allows the communication of information within the organisation to flow freely, rather than a top to bottom method as is true in transactionally lead organisation. In turn this allows for greater freedom, development and collaboration amongst employees which is the main focus of transformational leadership (Beer,

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