Transactional Leader Or Transformational Leader Who is Better

What is Transactional Leadership (STU Online, 2018).

A transaction leader is a leader who is able to command military operations, manage large corporations, or direct international projects that require regulations to complete objectives on time, or to transport people and supplies in an organized manner. Such a leader is not suitable for a workplace that values ​​creativity and new ideas. Transactional leadership relies on self-motivated individuals who work well in a structured, directed environment as well (STU Online, 2018).

Transactional Leadership Style (STU Online, 2018).

·         Focused on short-term goals

·         Favor structured policies and procedures

·         Thrive on following rules and doing things correctly

·         Revel in efficiency

·         Very left-brained

·         Tend to be inflexible

·         Opposed to change

 

Advantages and Disadvantages of Transactional Leadership (STU Online, 2018).

Transactional leadership pros.

·         Rewards those who are motivated by self-interest to follow instructions

·         Provides an unambiguous structure for large organizations, systems requiring repetitive tasks and infinitely reproducible environments

·         Achieves short-term goals quickly

·         Rewards and penalties are clearly defined for workers

 

Transactional leadership cons.

·         Rewards the worker on a practical level only, such as money or perks

·         Creativity is limited since the goals and objectives are already set

·         Does not reward personal initiative

What is Transformational Leadership (Cherry, 2020).

Transformational leaders are generally energetic, enthusiastic and have a leadership style that can support positive changes in the team. They are also focused on helping each member of the team succeed and Is a person who respects the ideas of everyone on the team as well.

Transformational leadership style (STU Online, 2014).

·         Very well-organized and expect their followers to be creative.

·         Team-oriented and expect that followers will work together to create the best possible results.

·         Respected, and in turn respects followers.

·         Acts as coach of the team. He or she provides training and motivation to reach the desired goals.

·         Responsible for their team, but also instils responsibility into team members.

·         Engenders respect through rapport and a personal influence.

 

Advantages and Disadvantages of Transformational Leadership (STU Online, 2014).

Transformational leadership pros.

·         Excellent at communicating new ideas.

·         Good at balancing short-term vision and long-term goals.

·         Experience building strong coalitions and establishing mutual trust.

·         They have integrity and high emotional intelligence (empathy with others).

 

Transformational leadership cons.

·         Ineffective in initial stage or ad-hoc situations.

·         Require an existing structure to fix.

·         Bad fit in bureaucratic structures.

 

Comparison of Transformational Vs Transactional Leaderships (STU Online, 2014).

Transformational Leadership	Transactional Leadership
Working to change the system	Work within the system
Solving challenges by finding experiences that show that old patterns do not fit or work	Start solving challenges by fitting experiences to a known pattern
Wanting to know what has to change	Want to know the step-by-step approach
Maximizing their teams' capability and capacity	Minimize variation of the organization

 

Conclusion

As the above article shows, a transactional leader is a person who acts within a framework and focuses on a short-term goal, a leader who is not flexible, resists change, and acts in accordance with the rules as well. But the transformational leader is quite different and he works for long-term goals and becomes a leader who respects new ideas, works together with employees and builds strong alliances and builds mutual trust. A transformational leader is more important than a transactional leader at the social level where the employees are considered an asset. In our opinion, the transformational leader now holds a leading position.

 

 

References

Cherry, K., 2020. Transformational Leadership. [Online]
Available at: https://www.verywellmind.com/what-is-transformational-leadership-2795313
[Accessed 09 November 2020].

STU Online, 2014. What is Transformational Leadership? How New Ideas Produce Impressive Results. [Online]
Available at: https://online.stu.edu/articles/education/what-is-transformational-leadership.aspx
[Accessed 09 November 2020].

STU Online, 2018. What is Transactional Leadership? How Structure Leads to Results. [Online]
Available at: https://online.stu.edu/articles/education/what-is-transactional-leadership.aspx
[Accessed 09 November 2020].