Transactional vs. Transformational Leadership

This leadership series examines the differences between transactional and transformational leadership styles, concluding that the transformational leadership style is more conducive to leading teams toward achieving operational excellence.

Let’s start with a basic understanding of transactional leadership. 

• Transactional leadership views the relationship between leader and team member as a transaction, rather than on the relationship. 

• The transaction is results oriented, creating a series of actions aimed at achieving results.  The team member acts, the leader responds to the action. 

• Transactional leadership is often viewed as a series of rewards and punishments based on the team members actions. 

• Clarity of expectations, rules, and structure are Important to effective transactional leadership. 

The advantages and disadvantages of transactional leadership will be addressed in the next edition.