Transactional leadership motivates subordinates through rewards and punishments for performance, focusing on short-term goals set through structured policies. Transformational leadership inspires innovation and change by encouraging creativity without micromanaging, balancing short and long-term visions through trust and strong teams. While transactional leadership achieves quick compliance, transformational leadership better enables growth through motivation and flexibility, though it requires an existing structure and may be ineffective initially in bureaucratic environments.

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3. TRANSACTIONAL LEADERSHIP
The term “transactional” refers to the fact that this type of leader
essentially motivates subordinates by exchanging rewards for
performance.
A leadership style based on the setting of clear goals and objectives
for followers and the use of rewards and punishments to encourage
compliance

4. Advantages Of Transactional Leadership
1. Rewards those who are motivated by self-interest to follow
instructions
2. Achieves short-term goals quickly
3. Rewards and penalties are clearly defined for workers

5. Disadvantages Of Transactional
Leadership
1. Rewards the worker on a practical level only, such as money or
perks
2. Creativity is limited since the goals and objectives are already set
3. Creativity is limited since the goals and objectives are already set

6. Transactional Leadership Style
1. Focused on short-term goals
2. Favor structured policies and procedures
3. Opposed to change
4. Tend to be inflexible

7. Transformational Leadership
Transformational leadership is a leadership style in which leaders
encourage, inspire and motivate employees to innovate and create
change that will help grow and shape the future success of the
company.
Transformational leaders inspire and motivate their workforce
without micromanaging — they trust trained employees to take
authority over decisions in their assigned jobs. It’s a management
style that’s designed to give employees more room to be creative

8. Advantages Of Transformational
Leadership
1. Excellent at communicating new ideas
2. Good at balancing short-term vision and long-term goals
3. Experience building strong coalitions and establishing mutual
trust

9. Disadvantages Of Transformational
Leadership
1. Ineffective in initial stage
2. Require an existing structure to fix
3. Bad fit in bureaucratic structures

10. Characteristics Of Transformational
Leaders:
1. Very well-organized and expect their followers to be creative
2. Team-oriented and expect that followers will work together to
create the best possible results
3. Respected, and in turn respects followers
4. Acts as coach of the team. He or she provides training and
motivation to reach the desired goals

11. The difference between transactional
leadership and transformational leadership
Transactional Transformational
features positive and negative
reinforcement
emphasizes motivation and
inspiration
reactive proactive
appeals to the self-interest of
individuals
prioritizes group progress

12. CONCLUSION

13. Thank you