Transformational Vs Transactional Leadership

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Besides being an effective leader, it is fundamental that every leader should have a leadership style. Rodd (1997) states that it is no longer acceptable to lead and manage in an autocratic, authoritarian and power assertive style. Rather, the responsibility is on the leader to implement a cooperative, democratic and consultative style in relation to the people they work with and for. Two leadership skills (transformational leadership and transactional leadership) will be analysed and chosen based on the appropriateness of the case study. The origins of transformational and transactional leadership came from political as opposes as to occupational notions of leadership (James McGregor – Burns (1978)). Bass’ (1989, 1990) theory of transformational …show more content…
Transactional leaders can be categorised into three types: contingent reward (positive reinforcement), where rewards are offered if certain criteria are met; management by exception-active, where leaders aim to intervene in followers’ behaviours before they become problematic; and management by exception-passive, where leaders do not intervene until followers’ behaviour becomes problematic. Transactional leadership is an influence process that motivates individual effort by engaging in an exchange or transaction for followers. As mentioned above, this leadership approach exchanges extrinsic rewards, such as bonus pay, for appropriate performance. (Kahai, Jestire and Huang, 2013). Bass, 1985, cited in Bono and Judge, 2004, explained that transactional leadership behaviours are aimed at monitoring and controlling employees through rational or economic means. On the other hand, Burke et al, 2006, cited in Giltinance, 2013, suggested that transactional leadership, based on contingent rewards, can have a positive consequence on followers’ satisfaction and performance. Similarly, it is explained by Horwitz et al 2008, cited in Giltinance, 2013, that transactional approach is task-orientated and can be effective when meeting …show more content…
However, in this case, transformational and transactional leadership style represents bold attempts by researcher to explain the nature of leadership (James and Ogbonna, 2013). Transactional leadership are leaders who exchange tangible rewards for the work and loyalty of followers. Whereas transformational leaders are leaders who engage with followers about the implications of specific outcomes and new wars in which those outcomes might be achieved (Hay, 2012, cited in James and Ogbonna, 2013). Therefore, it is to a conclusion that transformational leadership is the best leadership style for this case study and as of in an early years setting, as transformational leaders are able to alter the atmosphere to make for a better situation for everyone (Winchester,

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