TRANSACTIONAL LEADERSHIP

&
TRANSFORMATIONAL LEADERSHIP

ROY GALENZOGA GARING, LPT, MAEE, PhD (CAR)

Leadership is a trait of influencing the
behavior of individuals, in order to fulfill
organizational objectives.
 What is Transactional
Leadership?

• It is a style of leadership in which the

leader promotes compliance of his followers
through both rewards and punishments. Also
known as “Management theories” (Odumeru
& Ifeanyi, 2013).
• It is defined as the influence of a leader
toward his subordinates using reward and
punishment as a form of motivational
medium.
• In this, the leader has the right to punish
his or her subordinates if their performance
is not according to the predetermined
standard.
 SOME ASSUMPTIONS
Employees The subordinates
are motivated have to obey the
by reward and orders of the
punishment. superior.

Transactiona
l Leadership
The main goal of the
follower is to obey the
The subordinates are instructions of the
not self-motivated. leader. The style can
also be mentioned as
a ‘telling style’.
 Dimensions of Transactional
Leadership

Contingent Active Management

Rewards By Expectation

Transactiona
l Leadership

Passive
Management By
Expectation Laissez faire
Dimensions of Transactional • positively reinforce appropriate
Leadership behaviors
• negatively reinforce inappropriate
1. Contingent Rewards behaviors

• monitor groups and correct

2. Active Management By mistakes
Expectation
• means avoiding action until
mistakes or problems can no
3.Passive Management By longer be ignored
Expectation
• leave group alone and only
interact when there are
4. Laissez faire challenges
Model of Transactional
Leadership
 ADVANTAGES &
DISADVANTAGES OF
TRANSACTIONAL
LEADERSHIP

Advantages of Transactional
Leadership
It can be very effective for
motivating subordinates and
eliciting productivity.
 Clear structured.
 Achieves short-
term goals quickly.
Rewards and penalties
are clearly defined for
workers.
Disadvantages of
Transactional Leadership
This type of leadership is
flawed since it motivates
people only on the base
level.
Creativity is limited
since the goals and
objectives are already set.
Ego states are difficult
to define.
Does not reward
personal initiative

Advantages of Transactional
Leadership
 Rewards and
Incentives
 Structure is Clear
 Short Term Goal
 Control Rewards
Disadvantages of
Transactional Leadership
Transactional leaders tend to be more
reactive to changes in market
conditions.
 Transactional leadership also
promotes a rigid hierarchy.
 Slow to respond to and take advantage.
This is poor when higher thinking skills
level is needed to utilize.
 This also limits its follower that
wishes to engage with higher level of
professional environment.
 Some of the Worlds Most
Successful People

1 . Norman Schwarzkopf. As a
•
graduate from West Point
University, Schwarzkopf was
essential in helping2. revolutionize
Bill Gates. As the founder of one
of ofthe
the coordinated efforts worlds most successful
a United Transactional Leadership
States military in Operation
companies,Desert Gates was able to Examples
Storm in the 1990sinspire
and wasresults
also through structure,
efficient in using the rules and
regulations of the organization,
US Military to and by always holding
• Coaches of athletic teams
his subordinates
manage strategic efforts on every to a high standard.
continent during his time as • Managers of restaurant
commander in chief. wait staff

• Military Drill Sergeants

 What is Transformational
Leadership?

• A leadership approach that causes

change in individuals and social systems.
• It creates valuable and positive change
in the followers with the end goal of
developing followers into leaders.
• Leaders who stimulate and inspire
followers to both achieve extraordinary
outcomes and, in the process, develop
their own leadership capacity.
• helps followers grow and develop into
leaders by responding to individual
needs by empowering them and by
aligning the objective and goals of the
individual followers, the leader, the
group, and the larger organization.
 Dimensions of
Transformational
Leadership

• Idealized Influence
Charisma

• Inspirational Motivation

• Intellectual Stimulation

• Individual Consideration
 1. Idealized Influence
2. Inspirational Motivation
(Charisma)
• . Leaders hold, share and
• demonstrate core values
• and trust.
•
. Followers deeply respect
• & trust Leaders
 Leaders motivate
• . Leaders provide a vision workers by conveying
• and sense of mission. confidence and a
sense of purpose
3. Intellectual Stimulation Individualized
Consideration

> Stimulates followers > Leaders are concerned

to be creative and with people’s feelings
innovative. and needs.
> Leaders who provide a
> Leader supports supportive climate in
followers to try new which they listen
approaches. carefully to the needs of
followers.
Model of Transformational
Leadership

Performance Beyond
Expectations
General Characteristic of
Transformational Leaders

Transformational leaders motivate and

inspire followers to
achieve
extraordinary goals. They are
process-oriented and focus on
developing others to be a leader
also (van Linden & Fertman).
 ADVANTAGES OF
TRANSFOMATIONAL
LEADERSHIP
Exceed expected
performance
New
Lower Employee Initiatives
and Customer Exceptional
Turnover Costs People Skills
DISADVANTAGES OF
TRANSFOMATIONAL
LEADERSHIP
Dependence on
the Leader and
Abuse of
Influence
 Draining
Personnel and
Loss of Inspiration
 Pursuit
of Intellectual
Ideas with No
Merit
Overemphasis
on
Some
Individuals
 Some famous examples of
transformational
leaders:

2. William Wilberforce.
1. Gandhi. Whose He fought to abolish
non-violent protests slavery in the UK in the
have caused the 1 9th century; and what
world to think long was deemed lawful and 3. Mark Zuckerberg. He
and hard about legitimate is now changed the face of
racial deemed illegal and internet and the way we
discrimination. immoral. interacted with one
another with the creation
of Facebook.
BASIS FOR TRANSACTIONAL LEADEDRSHIP TRANSFORMATIONAL LEADERSHIP
COMPARISON
INTRODUCED BY Max Weber in 1947 James V. Downtown in 1978

CONCEPT Emphasizes on basic management Emphasizes on how leaders can

processes like organizing, create a positive and a valuable
controlling, and short-term change in their subordinates.
planning.
MEANING In transactional leadership, In transformational leadership,
leaders employ punishment and leaders employ enthusiasm and
rewards as motivators for its charisma to inspire their
followers. followers.
BASED ON Based on motivating employees Based on leaders ability and
through a system of rewards and personality traits to make
punishments. These leaders are changes through examples. They
action oriented and self- earn trust admiration and respect
directive. from theior subordinates.
FOCUS Focuses oin maintaining Focus on values, ideas, needs,
favorable relationship with the and morals of the followers.
followers.
 BASIS FOR TRANSACTIONAL TRANSFORMATIONAL
COMPARISON LEADEDRSHIP LEADERSHIP
AREA OF CONCERN Concern is about status quo Change oriented

NATURE Responsive Proactive

WORKS FOR Developing the existing Changing the existing

organizational culture organizational culture

BEST SUITED FOR Settled environments Turbulent environments

STYLE Bureaucratic Charismatic

MOTIVATIONAL Motivates and inspires Stimulates followers by

TOOL followers by giving more making the group
priority to self-interest interest as a priority
NUMBER OF One or two Multiple
LEADERS
 BASIS FOR TRANSACTIONAL TRANSFORMATIONAL
COMPARISON LEADEDRSHIP LEADERSHIP
• Contingent Rewards • Idealized influence
• Active Management by • Inspirational motivation
Exception

DIMENSIONS • Passive Management by • Individualized consideration

Exeption and Laissez-
faire • Intellectual stimulation
I BELIEVE!
 Thank
You!
Leadership is
not a title or
a position. It
is action and
example.

All it takes is
you: The best
version is
ROY GALENZOGA GARING, LPT, MAEE, PhD (CAR) YOU!