Transactional vs Transformational Leadership: Part 3 – Comparison

4 mins read

In part one and two of this series, it was discussed what Transactional and Transformational Leadership is. Here we will compare the two leadership styles.

Employees want to work for a leader that looks forward to changing with the world and is not stuck in their old ways; gone are the days where employees are willing to work for someone who only maintains the status quo in the workplace. Leaders who lack adaptability may start to be viewed in a negative light because there is little or no growth and development. When there is nothing to look forward to and everything remains the same, the chances are that the team will become bored and complacent.

It’s important to reflect and ask yourself one question, “What does it take to be a great leader”? Since your response may be different from anyone else, try not to judge yourself based on others as people may have a different outlook on what a great leader is.

More often now, leaders are beginning to ask themselves valuable questions that ensure they achieve consistent results and maintain respect without accidentally creating a toxic work environment. Leaders should not be afraid to challenge the status quo or create opportunities for their employees to learn something new. There can be a great benefit to being aware and listening to employees; along with the potential for new ideas, employees will feel they are valued by their leaders and company.

As stated by leadership expert James Burn (1978), leaders should partner with their employees to “advance collectively to a higher level of morale and motivation,” in order to understand what is affecting the workforce’s performance.

Traditional transactional leadership styles can be ineffective, having a negative impact on their employee’s well-being because their team is not feeling inspired and are not focused on the bigger picture. Leaders who harness the transformational leadership style can have the exact opposite effect on their team because they are motivated to succeed together. Be that strong role model and lead by example.

Below is a list of behaviours that were discussed in the previous articles.

To have a functional team, one should ensure they keep their team well-informed with what is going on or at least be on the same page. An effective leader clearly defines expectations, listens to their employees, and challenges them to grow and develop their skills. Be a leader who inspires and motivates their team to create positive changes within the business, refrain from being a leader who does not challenge the status quo and keeps their team from being creative. Build on your teams’ relationship with one another and across the organization to increase group morale which can lead to innovation and improve conflict resolution or turnover.

Remember as a leader, your job is to lead. Not to do every job, motivate and inspire your team to get creative with solutions and take action. You will help your employees feel valued, your company see value and your personal workload decrease. It’s a win win win.

Download this resource article Transactional vs Transformational Leadership: Part 3 – Comparison (pdf).

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