The Brief idea about the Transactional Leadership and Transformational Leadership. Difference between them and component and implications of this style model.

1. TRANSACTIONAL AND
TRANSFORMATIONAL
LEADERSHIP
Bernard Bass
1925-2007

2. HELLO!
I am Santosh Meka
The Brief idea about the Transactional
Leadership and Transformational Leadership
Pg.324
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3. 1.
TRANSACTIONAL LEADER
In 1947, the style was first proposed by Max Weber
followed by Bernard Bass in the year 1981
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4. “…in transactional leadership, leaders
engage in a relationship for the purpose
of exchanging valued things…”
- Burns
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Transactional leaders pursue a cost benefit
economic exchange to meet the followers
needs in return for the followers doing
what the leaders is seeking to accomplish

5. 5
Contingent
leadership
I will give you
want you want if
you do what I
want.
Active Management-
High level of
vigilance to ensure
that standards are
met.
Correction is used
when needed.
Passive
management-
leaders fail to
intervene until a
problem becomes
serious
Laissez-Faire
leave group alone
and only interact
when there are
challenges
COMPONENTS OF TRANSACTIONAL LEADERSHIP

6. Implications of Transactional Leadership
» It emphasize detailed and short-term goals, and standard rules and procedures.
» Do not make an effort to enhance followers creativity and generation of new ideas.
» This kind of leadership style may work well where organizational problems are
simple and clearly defined.
» It tends to be highly directive and action oriented and their relationship with
followers tends to be transitory and not based on emotional bonds.
» The Only transaction between leader and follower is the money which
the follower receive for their compliance of effort.
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7. 2.
TRANSFORMATIONAL LEADER
James MacGregor Burns first proposed the concept
of this leadership style in the year 1978
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8. “Transformational leaders transform the personal values
of followers to support the vision and goals of the
organization by fostering an environment where
relationships can be formed and by establishing a climate
of trust in which visions can be shared”.
- Bernard Bass …”
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Transformational Leadership is a leadership style where
one or more persons engage with others in such a way that
leaders and followers raise one another to higher levels of
motivation and morality.

9. Idealized
influence
build trust and
respect and are
seen as
charismatic
Intellectual stimulation
Is the color of coal,
ebony, and of outer
space. It is the darkest
color, the result of the
absence of or complete
absorption of light.
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Inspirational
motivation
belief that
together we
can solve all
problems
Individual
Considerations
paying attention
to each person’s
need to achieve
an grow
COMPONENTS OF TRANSFORMATIONAL LEADERSHIP

10. How People-leaders transform organizations
» Inspire with long-term vision and engage people in meaningful ways to bring a shared
vision to life.
» Originate by seeking diverse points of view and being inclusive in decision-making.
» Challenge the status quo by continually asking “what’s new?” and “what’s next?”
» Build success through employee commitment and emotional engagement.
» Communicate openly and frequently to create clarity and to invite all voices in.
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11. » Listen and learn from others, regardless of positional power or hierarchy.
» Set standards of excellence based on potential, not past performance.
» Take risks on people and ideas, trusting and allowing others to fail forward.
» Put people first, ahead of deliverables and deadlines and distractions.
» Build people so people can build the business.
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12. 12BASIS FOR
COMPARISON
TRANSACTIONAL LEADERSHIP TRANSFORMATIONAL LEADERSHIP
Meaning
A leadership style that employs rewards and
punishments for motivating followers is
Transactional Leadership.
A leadership style in which the leader
employs charisma and enthusiasm to inspire
his followers is Transformational Leadership.
Concept
Leader lays emphasis on his relation with
followers.
Leader lays emphasis on the values, ideals,
morals and needs of the followers.
Nature Reactive Proactive
Best suited for Settled Environment Turbulent Environment
Works for
Developing the existing organizational
culture.
Changing the existing organizational culture.
Style Bureaucratic Charismatic
How many leaders
are there in a group?
Only one More than One
Focused on Planning and Execution Innovation
Motivational tool
Attracting followers by putting their own self Stimulating followers by setting group interest

13. TRANSFORMATIONAL vs TRANSACTIONAL LEADERS
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 Provide mission and vision to the
followers
 Communicates high expectation and
motivate employees to focus on efforts
 Promotes Intelligence and rationality
 Coaches and Advices
 Provides personal attention to the
employees
 Promises rewards for good work
 Intervene only when standards not meet
 Provide full freedom to employees to take
decision at their own level and encourage
accountability
 They change followers

14. THANKS!
Any questions?
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