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Transactional vs. Transformational
Leadership
By: Katie Smith
Transactional Leadership- History
 The theory of transactional leadership is attributed to Max Weber, a 20th
century German sociologist (St. Thomas University, 2018).
 In 1947, Weber described what came to be known as transactional
leadership as “the exercise of control on the basis of knowledge” (St.
Thomas University, 2018).
 Transactional leadership methods were implemented widely after World
War II to maintain structure and stability in the United States (St. Thomas
University, 2018).
 By the 1980s, transactional leadership had become a prominent
leadership style by name (St. Thomas University, 2018).
Transactional Leadership- Tenets
 Rewards and punishments system
 Relationship between leader and subordinates viewed as an exchange
 Clearly defined standards and expectations
 Highly structured environment
 Task-oriented
(Cherry, 2018)
Transactional Leadership- Examples
o Bill Gates
o Vince Lombardi
o Howard Schultz
(St. Thomas University, 2018)
https://www.lifegate.com/people/news/bill-gates-two-billion-in-
renewables
Transactional Leadership in Education
 In the classroom: The teacher sets a clear goal for the class and rewards
them if it is met.
 In the school: A principal motivates faculty to work efficiently by offering
early dismissal during in-service.
 In policy: A teacher receives an increase in pay if student performance
improves on standardized tests.
Transformational Leadership- History
 Sociologist James Downton coined the term “transformational
leadership” in 1973 (St. Thomas University, 2018).
 In the late 1970s, leadership expert James Burns expanded upon
Downtown’s ideas. Burns defined transformational leaders as those who
seek innovation and change to improve both results and the greater
good (St. Thomas University, 2018).
Transformational Leadership- Tenets
 Leader as positive role model
 Leader as inspiring motivator
 Leader demonstrates genuine care and concern for followers
 Leader fosters innovation and creativity among followers
(Riggio, 2014)
Transformational Leadership- Examples
 Nelson Mandela
 Walt Disney
 Douglas MacArthur
(Legacee, n.d.)
https://www.capetownetc.com/news/remembering-nelson-
mandela/
Transformational Leadership in Education
 In the classroom: A teacher who implements new strategies tailored to his or
her class of students, not just ”tried and true” methods aimed at testing
improvement .
 In the school: A principal who encourages faculty to reflect, challenge the status
quo, and bring their ideas to the table—and is willing to implement change.
 In policy: Curriculum that allows for growth and student-centered instruction.
(Gunn, 2018)
Conclusion
Neither leadership style is “right or wrong” or “good or bad.” Both can be
effective in the right situations. However, just as its name evokes,
transformational leadership truly evokes lasting change among followers.
Individuals are acting because they are inspired, want to be better, and
want to work to improve the greater good. While this may also be true for
those under transactional leadership, it could also be simply a short-term
change implemented in order to receive a tangible reward, and unless the
reward continues, the change may not last. Furthermore, there is no need
for the styles to be mutually exclusive. In order to propel change, a
transformational leader may implement components of transactional
leadership at times. Solid leaders are able to adapt and assess the needs of
their followers.
References
Cherry, K. (2018). Transactional leadership. Retrieved from https://www.verywellmind.com/what-is-transactional-
leadership-2795317
Gunn, J. (2018). Transformational leadership in schools. Retrieved from https://education.cu-
portland.edu/blog/leaders-link/transformational-leadership-model/
Legacee. (n.d.). 125 Transformational leaders. Retrieved from
https://www.legacee.com/transformational_leadership/list-of-leaders/
Riggio, R. (2014). The four elements of transformational leaders. Retrieved from
https://www.psychologytoday.com/us/blog/cutting-edge-leadership/201411/the-4- elements-transformational-
leaders
St. Thomas University. (2018) What is transactional leadership. Retrieved from
https://online.stu.edu/articles/education/what-is-transactional-leadership.aspx#history
St. Thomas University. (2018). What is transformational leadership. Retrieved from
https://online.stu.edu/articles/education/what-is-transformational-leadership.aspx#history

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Transactional vs. Transformational Leadership

  • 2. Transactional Leadership- History  The theory of transactional leadership is attributed to Max Weber, a 20th century German sociologist (St. Thomas University, 2018).  In 1947, Weber described what came to be known as transactional leadership as “the exercise of control on the basis of knowledge” (St. Thomas University, 2018).  Transactional leadership methods were implemented widely after World War II to maintain structure and stability in the United States (St. Thomas University, 2018).  By the 1980s, transactional leadership had become a prominent leadership style by name (St. Thomas University, 2018).
  • 3. Transactional Leadership- Tenets  Rewards and punishments system  Relationship between leader and subordinates viewed as an exchange  Clearly defined standards and expectations  Highly structured environment  Task-oriented (Cherry, 2018)
  • 4. Transactional Leadership- Examples o Bill Gates o Vince Lombardi o Howard Schultz (St. Thomas University, 2018) https://www.lifegate.com/people/news/bill-gates-two-billion-in- renewables
  • 5. Transactional Leadership in Education  In the classroom: The teacher sets a clear goal for the class and rewards them if it is met.  In the school: A principal motivates faculty to work efficiently by offering early dismissal during in-service.  In policy: A teacher receives an increase in pay if student performance improves on standardized tests.
  • 6. Transformational Leadership- History  Sociologist James Downton coined the term “transformational leadership” in 1973 (St. Thomas University, 2018).  In the late 1970s, leadership expert James Burns expanded upon Downtown’s ideas. Burns defined transformational leaders as those who seek innovation and change to improve both results and the greater good (St. Thomas University, 2018).
  • 7. Transformational Leadership- Tenets  Leader as positive role model  Leader as inspiring motivator  Leader demonstrates genuine care and concern for followers  Leader fosters innovation and creativity among followers (Riggio, 2014)
  • 8. Transformational Leadership- Examples  Nelson Mandela  Walt Disney  Douglas MacArthur (Legacee, n.d.) https://www.capetownetc.com/news/remembering-nelson- mandela/
  • 9. Transformational Leadership in Education  In the classroom: A teacher who implements new strategies tailored to his or her class of students, not just ”tried and true” methods aimed at testing improvement .  In the school: A principal who encourages faculty to reflect, challenge the status quo, and bring their ideas to the table—and is willing to implement change.  In policy: Curriculum that allows for growth and student-centered instruction. (Gunn, 2018)
  • 10. Conclusion Neither leadership style is “right or wrong” or “good or bad.” Both can be effective in the right situations. However, just as its name evokes, transformational leadership truly evokes lasting change among followers. Individuals are acting because they are inspired, want to be better, and want to work to improve the greater good. While this may also be true for those under transactional leadership, it could also be simply a short-term change implemented in order to receive a tangible reward, and unless the reward continues, the change may not last. Furthermore, there is no need for the styles to be mutually exclusive. In order to propel change, a transformational leader may implement components of transactional leadership at times. Solid leaders are able to adapt and assess the needs of their followers.
  • 11. References Cherry, K. (2018). Transactional leadership. Retrieved from https://www.verywellmind.com/what-is-transactional- leadership-2795317 Gunn, J. (2018). Transformational leadership in schools. Retrieved from https://education.cu- portland.edu/blog/leaders-link/transformational-leadership-model/ Legacee. (n.d.). 125 Transformational leaders. Retrieved from https://www.legacee.com/transformational_leadership/list-of-leaders/ Riggio, R. (2014). The four elements of transformational leaders. Retrieved from https://www.psychologytoday.com/us/blog/cutting-edge-leadership/201411/the-4- elements-transformational- leaders St. Thomas University. (2018) What is transactional leadership. Retrieved from https://online.stu.edu/articles/education/what-is-transactional-leadership.aspx#history St. Thomas University. (2018). What is transformational leadership. Retrieved from https://online.stu.edu/articles/education/what-is-transformational-leadership.aspx#history