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1. TRANSACTIONAL AND
TRANSFORMATIONAL
LEADERSHIP
PRESENTED BY
AGLAIA

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.

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

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

14. Thank you 
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