Research transactiona and transformational leadership. What are the differences between the two styles? Analyze whether a leader can be both Solution Difference between transformational and Transactional leadership Transactional leadership- To maintain the normal flow of operations, Transactional leadership is used. It promotes compliance with existing organizational goals. It is best suited for settled environment. This style generally employs rewards and punishments for motivating followers. It is focused on planning and execution. The motivational tool used here is attracting followers by putting their own interest in the first place. Transformational leadership- The main focus of transformational leadership is to enhance the employee motivation and engagement and also attempts to link employees sense of self with organizational values. It goes beyond managing day to day operations. The goals are set here to push their employees to higher performance levels..