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TRANSACTIONAL AND
TRANSFORMATIONAL
LEADERSHIP
Prepared By
Gayathry Satheesan
TRANSACTIONAL LEADERSHIP!!!
 It is a style of leadership in which the leader promotes
compliance of his/her followers through both rewards and
punishments.
 It is also known as managerial leadership.
 This leader has the right to punish his or her subordinates if
their performance is not according to the predetermined
standard.
Qualities of transactional leadership
 Passive.
 Contingent reward and management-by-exception.
 Reward and punishments
 Directive and action-oriented.
 Transactional leaders are willing to work within existing
systems and negotiate to attain goals of the organization.
Advantages of transactional leadership
 Rewards and Incentives
 Structure is Clear
 Short Term Goal
 Control Rewards
Disadvantages of a transactional leadership
 Transactional leaders tend to be more reactive to changes
in market conditions.
 They promotes rigid hierarchy.
 They are Slow to respond to and take advantage.
 This type of leadership is flawed since it motivates
people only on the base level.
 This is poor when higher thinking skills level is needed to
utilize.
 This also limits its follower that wishes to engage with
higher level of professional environment.
TRANSFORMATIONAL LEADERSHIP!!
 Transforms the environment and the people in it.
 Focuses on building an appropriate context and on
enhancing the relationships of people within the system.
Environment
Lea
Features
 People can be trusted
 Everyone has a contribution to make
 Complex problems should be handled at the lowest level
 Norms are flexible adapting to changing environment
 Superiors are coaches, mentors, models
Advantages of transformational leadership
 Vision
 Inspiration (Motivation)
 Lower Employee and Customer Turnover Costs
(Retention)
 Superior Employee Performance
 Corporate Learning
Disadvantages of Transformational Leadership
 Dependence on the Leader
 Draining Personnel
 Power and Manipulation
 Lack of Check and Balance
 Usage of Impression Management
Thank you 

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transactional and transformational leadership

  • 2. TRANSACTIONAL LEADERSHIP!!!  It is a style of leadership in which the leader promotes compliance of his/her followers through both rewards and punishments.  It is also known as managerial leadership.  This leader has the right to punish his or her subordinates if their performance is not according to the predetermined standard.
  • 3.
  • 4. Qualities of transactional leadership  Passive.  Contingent reward and management-by-exception.  Reward and punishments  Directive and action-oriented.  Transactional leaders are willing to work within existing systems and negotiate to attain goals of the organization.
  • 5. Advantages of transactional leadership  Rewards and Incentives  Structure is Clear  Short Term Goal  Control Rewards
  • 6. Disadvantages of a transactional leadership  Transactional leaders tend to be more reactive to changes in market conditions.  They promotes rigid hierarchy.  They are Slow to respond to and take advantage.  This type of leadership is flawed since it motivates people only on the base level.
  • 7.  This is poor when higher thinking skills level is needed to utilize.  This also limits its follower that wishes to engage with higher level of professional environment.
  • 8. TRANSFORMATIONAL LEADERSHIP!!  Transforms the environment and the people in it.  Focuses on building an appropriate context and on enhancing the relationships of people within the system. Environment Lea
  • 9.
  • 10. Features  People can be trusted  Everyone has a contribution to make  Complex problems should be handled at the lowest level  Norms are flexible adapting to changing environment  Superiors are coaches, mentors, models
  • 11. Advantages of transformational leadership  Vision  Inspiration (Motivation)  Lower Employee and Customer Turnover Costs (Retention)  Superior Employee Performance  Corporate Learning
  • 12. Disadvantages of Transformational Leadership  Dependence on the Leader  Draining Personnel  Power and Manipulation  Lack of Check and Balance  Usage of Impression Management
  • 13.