Effective leadership is based on ideas and how they are communicated among the workers. In today's business world, effective management and sharing of information across the firm are among the main elements of success. When analyzing the underlying theories of management, transformational and transactional leadership are polar opposite methods. Understanding the difference between the two is essential in evaluating managers' performance. Transformational leadership mainly focuses on motivation and collaboration among employees. The leaders set goals and incentives as a way of improving productivity. Employees are among the most critical elements in this method. On the other hand, transactional leadership style aims at maintaining an active and orderly flow of activities. The managers use disciplinary power to keep their employees focused.
Behaviors Associated with Each Method
Transformational leadership - the method is used to guide employees through motivation. It is among the most effective techniques to implement within the public and private sectors that encourage diversity. The seniors create a vision for their followers and lead by example. The method is characterized by individualized consideration, inspirational motivation, and intellectual stimulation (Deichmann & Stam, 2015). The leaders support and collaborate with their workers to try new techniques and technologies that seem beneficial. The primary advantage of using this method is that employees are involved in the decision-making process. They are also encouraged to go beyond their expectations. Transformational leadership is visible at all levels of the firm because it is based on corporate culture.
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Transactional leadership - the method is also known as managerial leadership. The senior employees mainly focus on supervising, organizing and assessing performance over time. Firms that utilize this method have distinctive hierarchies in that the subordinates look up to the seniors for instructions. Leaders explain what needs to be done and the followers work towards achieving these objectives. According to Deichmann & Stam (2015), a primary challenge is that the technique does not work towards transforming or improving the future. One of the most distinct characteristics of the transactional style of leadership is extrinsic motivation. Leaders aim to elicit desired behaviors and goals. However, from the positive side, the method is most applicable when carrying out major projects.
Actions of Famous Leaders
Michelle Rhee served as the chancellor of Washington, DC public schools for four years. During her time of nomination, she had fifteen years of education experience. Rhee was a transactional leader. First, she set some objectives that needed to be achieved by all the schools in the region. The primary goal was to impart the idea that success in the classroom takes time to achieve and is dependent on discipline. She noted that it was better to use rigid structures that students and teachers could follow strictly other than love and compassion (Odumeru & Ogbonna, 2013). Secondly, Rhee closed all the schools that had low enrollments and outdated buildings. The reform is a form of punishment that is used by transactional leaders to gain compliance. Thirdly, she created a project named IMPACT that was used to evaluate teachers' performance based on how their students learned. The results were tied on their payments which meant that teachers with low ratings could be dismissed. Despite the challenges faced, the method inspired a generation of reform leaders across the country.
Conclusion
Different managers employ different management techniques. These methods are mainly based on one's experience or corporate strategies. Leaders set directions, guide employees, build on company vision, and help others to do the right thing. When choosing a leadership technique, it is essential to consider the benefits associated with each style as well as the goals to be achieved. Depending on the situation, a leader may interchange or combine the techniques.
References
Deichmann, D., & Stam, D. (2015). Leveraging transformational and transactional leadership to cultivate the generation of organization-focused ideas. The Leadership Quarterly , 26 (2), 204-219.
Odumeru, J. A., & Ogbonna, I. G. (2013). Transformational vs. transactional leadership theories: Evidence in literature. International Review of Management and Business Research , 2 (2), 355.
