Transactional And Transformational Leadership Essay

1347 Words 6 Pages
Executive Summary
We investigate the effect of transactional and transformational leadership on followers and how each motivate individuals to commit to the enterprise goals and objectives. This report gives insight into the difference between transformational and transactional leadership drawing from case study evidence. The report concludes that although their core concepts are different, they share similar aspects and are most effective when used the right circumstances and context.
Introduction
Leadership is perhaps the most important factor of success in an enterprise. It plays an essential role in contributing to the wellbeing and success of organisations (Odumeru & Ifeanyi, 2013). Organisations such as Qantas had been turned around
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Transformational leaders focus on the development of each individual followers, essentially assisting followers into changing their perspectives by helping them see new solutions from old ones; and have the ability to inspire followers into putting in more effort and committing to accomplish the enterprise goals and objectives. The core concept of Transformational leadership theory is about using leadership to create a positive change in the followers, by aligning their perspective and interests with the leader (Warrilow, …show more content…
Contingent rewards are handed to followers when they have accomplished a set of task correctly, and reach objective ahead of time. Whereas, contingent penalization is handed down to followers when something goes wrong, these are handed to individual followers until the fault is corrected. Hence, transactional leadership focuses on individuals unlike transformational leadership which emphasis collective goals, transactional leadership tends to reduce cooperation within teams in the long term (Odumeru & Ifeanyi,

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