Four core facets of transactional leadership as described by Schermerhorn et al., (2000) are contingent rewards, active management by exception, passive management by exception and laissez-faire. In transactional leadership, the center characteristic is the relation of exchange established between leaders and subordinates. In that sense, the transactional leader clarifies the goals that are to be achieved and makes it obvious that the successful achievement of these targets will involve rewards, while non-compliance with the targets will involve penalties (Bass et al., 1996; Bass et al., 2003). Hence, these leaders motivate their subordinates by establishing common agreements that, if effectively complied with over time, can be responsible for the subordinates’ development of feelings of trust in the leader (Whittington, Goodwin, Coker, Ickes, & Murray, 2009). Transactional leaders identify the expectations of their followers and respond to them by establishing a close link between effort and
The transactional leadership emphasizes the transaction or exchange which among leaders, followers and subordinates what is required conditions and rewards to fulfill the requirements. The transformational leadership raise the moral maturity whom they lead, and convert their follower into leaders, motivate their associated, followers, subordinates, colleagues, clients to go beyond their individual self-interest for the good of the organization. There are two lines to define on leadership styles and situational contingencies styles which focused the difference between task-oriented and people-oriented leaders. Based on quantitative and qualitative leadership studies, we can found different theories such as trait theory, contingency theory, Charisma, leader-member exchange (LMX) theory which fits best for which different situation, and which style seem to be more effective such as Bass’ transformational leadership
The psychological principles on which this leadership style is based is of Pavlovian and Skinnerian. The basic premise of transactional leadership that marketplace demands reciprocity, flexibility, adaptability, and real time cost-benefit analysis (Burns, 1978) makes it inappropriate to use it in today’s dynamic knowledge economy. However, if the supply of skilled labors are higher than the demand, for example in a country like India, then leaders usually resort to transactional style wherein carrot and stick policy is applied and people are merely thought of as being motivated by monetary gains and not more than what scientific management theorist or McGregor’s Theory X, had the view of humans. This leadership style also works in military, police wherein people have to work within a set parameter and a defined structure. This leadership style is a prescription of short term gains with severe negative implications for long term existence of organization.
In this co-existense, transformational leadership posits that leaders and their followers form and build interpersonal relationships where the former become change agents and the latter as leaders. This relationship ultimately leads to the empowerment of the followers where their potentials are developed to the fullest eventually meeting their needs. All the members of the organization experience a change in mind and heart and commitment is built on organizational objectives. This study will look into ways on how academic middle managers empower their faculty members to prepare them to work towards the attainment of goals as well as towards the attainment of their needs through the different leadership roles performed by the former. On the other hand, transactional leadership focuses on motivating members towards organizational vision of which rewards are expected in the attainment thereof.
The “transaction” is usually the organization paying the team members in return of their effort and compliance. b. The leader has a right to “punish” team members if their work doesn’t meet the pre-determined standard. Team members can do little to improve their job satisfaction under transactional leadership. c. This is really a type of management, not a true leadership style because the focus is on short-term tasks.
This leadership can give favorable long term performance. According to Burns the two leadership styles- transforming and transactional are completely opposite to each other and which exist exclusively. Building on the work of Burns, Bass described further on his theory on leadership styles including transformational and transactional leadership style and extending it further to the full range leadership model. He initiated a study of transformational
Relative to the relationship behavior, the focus is on the degree of support that the leader provides to the employers. Unlike in the task behavior, the relationship behavior uses a two way channel of communication. Here, the leader plays both the role of a facilitator and the listener. Therefore, an effective leader is the one able to determine the extent of task behavior and relationship behavior to accommodate based on employees readiness. In this context, readiness refers to the employees ' ability and willingness in directing their behavior towards the task at hand.
He described that transformational leadership and transactional leadership is a single continuum rather than independent. There are seven factors of transformational leadership according to Bass’s model, divided into three parts: 1. transformational factors: idealized influence, inspirational motivation, intellectual stimulation and individualized consideration, 2. transactional parts: contingent reward and constructive transactions, management by exception and active & passive also corrective transactions, 3. non leadership factor: laissez-faire. Idealized
Traditional Leadership Styles Even though not all organizations may benefit from transformational leadership if not in a state of change, a transactional approach has merits for clarifying roles and setting specific goals for followers. The popular leadership theory is transformational yet both transformational and transactional styles are equally selective of certain characteristics and behaviors where females tend to display a natural affiliation towards transformational. Transformational motivates and stimulates followers whereas transactional can have a negative impact that leads to demoralization of followers. Transactional leadership operates on a reward or punishment approach that thrives in a stable predictive environment. Transformational
It is fascinating how differently the same organisation can perform with different leaders. It is all about motivating team members to be at their best levels in both collective and separate ways that shows great distinction between leadership styles. There are a lot of leadership styles that guide organisations to greater success, and one of them is transformational leadership that allows for flexibility and good interaction amongst members of the organisation and the leader. Transactional leadership, dictatorship, is mainly concerned with maintaining the good public status and performance than building an effective team. Through passion, motivation and charm, charismatic leaders are capable to articulate their vision under the organisation’s