TRANSACTIONAL AND

TRANSFORMATIONAL
CULTURES
MARY CHERILL P. UMALI
Reporter
 TRANSFORMATIONAL
CULTURE
TRANSACTIONAL
CULTURE
 • It concentrates on explicit
and implicit contractual
relationships.

• It usually set a price for

TRANSACTIONAL doing anything:
CULTURE “Everyone has a price.”
 • There is a sense of
purpose and a feeling of
family.

• Commitments are long term.

Mutual interests are shared,
along with a sense of shared
TRANSFORMATIONAL fates and interdependence of
CULTURE
leaders and followers.
 TRANSFORMATIONAL
CULTURE
• Leaders serve as mentors,
TRANSACTIONAL coaches, and role models
CULTURE
• Leaders are skilled
negotiators and resource
allocators.
 • A wide range of behaviors
are covered by shared
norms.

• The goals, visions, and

missions of the organization
TRANSFORMATIONAL are all highlighted.
CULTURE
 TRANSACTIONAL AND
TRANSFORMATIONAL CULTURES
• A primarily transactional organizational culture could benefit from an effective
transformational leader who provides the sort of leadership that can move the
culture in a more transformational direction.

• Changing an existing organizational culture is a delicate operation that requires

the leader to first investigate and understand the existing culture and then realign
the old culture with the new vision and goals.
 MEASUREMENT OF TRANSFORMATIONAL
ORGANIZATIONAL CULTURES
• The Organizational Description Questionnaire (ODQ; Bass & Avolio, 1992) is a
28-item survey questionnaire that can be completed by members of an
organization.
• Transactional elements in the culture’s assumptions:
• You get what you earn—no more, no less.
• We bargain with each other for resources.
• Rules and procedures limit discretionary behavior.
 MEASUREMENT OF TRANSFORMATIONAL
ORGANIZATIONAL CULTURES

• Transformational elements of the organization’s culture:

• People go out of their way for the good of the institution.
• Individual initiative is encouraged.
• We trust each other to do what’s right
 MEASUREMENT OF TRANSFORMATIONAL
ORGANIZATIONAL CULTURES
The ODQ generates a transactional culture score (TA) and a
transformational culture score (TF).

• Respondents indicate whether each of the 28 statements is either true

or false about their organization’s culture, or they indicate that they
cannot say. Scores are +1 for true, -1 for false, and 0 for cannot say.
Thus, total transformational and transactional scores for each
respondent ranged from -14 to +14.