Transformational And Transactional Leadership Theories

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Leadership is the ability to lead the individuals of an organization to achieve their potential as individuals and as a group. Each person is interconnected to the other individuals within the organization, with all parties being considered an essential element to the function of the organization. However, an organization with poor leadership will stumble and fall more than an organization with great leadership. Leaders do not need to be the head of an organization, but can exist departmentally and possess the skills needed to help transform a company from good to great. Managers manage the company and the nitty-gritty details of outcomes and daily activities, but leaders transform an organization and possess the vision of promoting the …show more content…
Transactional leaders drive workers to meet performance objectives, and emphasize extrinsic rewards (McClefsky, 2013).
Which is better? Both leadership theories are similar in that the organization still has to meet objectives, accomplish goals and produce outcomes to stay operational. Great leaders must know which behaviors to exhibit within the organization as most organizations operate on a continuum and will have peaks and valleys. Both transformational and transactional leadership theories state workers must understand the mission and the end goal, but which behavior the leader exhibits to get their workers to achieve the goal can be unique. The skills associated with being a transformational leader are being inspiring, motivational and encouraging. A transformational leader has charisma and is not threatened by others who try and challenge an organization to be innovative and forward thinking. Workers who are lead by transformational theory feel empowered and express confidence at helping their organization achieve their vision (Wolinski, 2010).These skills are less of a necessity for transactional leaders who are more bureaucratic and system thinkers who operate a supportive structured environment versus a creative
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Transactional leadership is needed to make sure that workers follow guidelines that ensure the safety of patients. It is critical for effective health education leaders in a health care setting to make sure that workers follow policies such as HIPPA and informed consent. Transactional qualities are needed in the health care setting to reduce burnout and relieve the anxiety of workers are having increasing state and federal regulations to follow while at the same time must create high levels of patient satisfaction or face Medicare and/or insurance penalties for not meeting evidence-based standards (Clark, 2012). An effective leader in the health care setting must also influence and motivate multigenerational workers by using the transformational

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