Since transactional leaders provide the employees with useful information about their roles in the organization and about what is expected of them in their work, they help them to understand what the organization stands for and what it is like to be a typical member of it. “Management is doing things right; leadership is doing the right thing”. We always hear the term, “think outside the box!” But transactional managers tend to think inside the box. This leadership encourages working with teams, creating a vision, and executing changes to suit organizational needs. Transactional leaders are more likely to motivate and persuade the employees who are concerned about the fairness of the outcome because their relationship with their leaders is based on the rewards they receive in exchange for their efforts. Hello friends! This system does not reward teamwork or group decisions. Company Registration No: 4964706. Therefore, he/she must be able to recognize the conditions that emerge in each situation and try to implement the right type of leadership in this situation so as to proceed with the optimal solution. Transactional leadership has its place despite how cutthroat it might seems. is like a complete box of information for our readers. This can be enhanced by the fact that transactional leaders focus on low order constructs such as broad performance goals and not on organizational visions which require the trust of the subordinates to successfully achieve these visions. Being passive, transactional leaders will only act when they are confronted with a specific situation that demands action. Transactional versus transformational leadership refers to two different styles of leadership that are opposites of one another. Thus, transactional leadership is best suitable for organizations that encourage authority, control, and rigidity. They do not care about suggestions as such and believe that in the end, the decision they take is final. This can be explained by the fact that transactional leaders do not use inspiration and mentoring to heighten the followers’ sense of belongingness. WHAT ARE THE COMMON BUT IMPORTANT CAUSES OF LOW SELF-ESTEEM? Managers follow instructions passed on to them by their manager and expect the same to continue down the chain.They are concerned only with the corporate affairs and culture. Also sometimes referred to as ‘managerial leadership’, this is a sophisticated leadership technique that focuses on supervision, organization, and performance. Transactional Leadership may also work best in situations of crisis or economic collapse. Each type of leadership contains a certain number of attributes which distinguishes it from the others, however many theories converge into the position that each type can be used separately or in conjunction with the others. In that case the leader must be able to establish relationships of trust and respect with its employees in order to inspire them and convince them that he/she is capable of providing inspiring strategic and organizational goals for the future. Our academic experts are ready and waiting to assist with any writing project you may have. They are concerned with the goals, culture, and structure of the existing organization. It was first described by sociologist Max Weber in 1947. By contrast, transformational leadership seeks to motivate and inspire workers, choosing to influence rather than direct others. Transactional Leadership: Most of the managers, CEOs, and big players in the industry use some specific tools and techniques to run their business and manage other people. Therefore, transactional leadership will only have an effect on employees who think and behave in ways that emphasize collaboration with the others. Managers rely on realistic and rational data and opportunities and the decisions are taken arebased on practical systems. Therefore, in these cases transactional leadership might have no positive effect on job satisfaction. no bonus if you fail. Teamwork is encouraged and promotes thinking that can contribute as a ‘group’. In order for the managers to apply this type of leadership in their organizations first they must discuss with their followers what is required and clarify how these outcomes are to be achieved and the reward they will receive in exchange for their satisfactory effort and performance. The leaders following the transactional approach are authoritative. Leaders who implement this style focus on specific tasks and use rewards and punishments to motivate followers. Finally, under certain conditions transactional leadership can play an important role in the organizational identification which affects the effectiveness of the company, increases the organizational citizenship behaviours and reduces turnover. If you need assistance with writing your essay, our professional essay writing service is here to help! Registered Data Controller No: Z1821391. As stated before, Transactional Leadership is based on rewards and punishments. Let us try to understand the same: Also read: STABILIZE YOUR WEBSITE WITH 15 BEST AD NETWORKS FOR PUBLISHERS. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. We always try to provide good and latest informative articles on different topics. They prefer to stay within the safe boundaries or comfort zone to solve day-to-day problems that the organization faces and even to achieve long-term goals. In order to achieve the highest subordinate performance, these leaders use rewards and punishments as tools. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Such organizations favour the elaboration of certain rules and regulations and determine specified performance measurement systems and hierarchical distribution. All work is written to order. 1st Jan 1970 Also read: Best Ideas for Eco-Friendly Homes. On the other hand, an employee will be punished or reprimanded if he or she does not meet certain performance expectations and does not add value to the organization. Goals are achieved through give and take model: rewards and punishments. Functions on existing culture, practices, and ideas of the organization. Difference Between Transactional and Transformational Leadership, 10 BEST WORDPRESS SEO PLUGINS FOR YOUR WEBSITE TO RANK HIGHER, AMAZING FACTS AND HEALTH BENEFITS OF AJWAIN (CARROM SEEDS), 10 IMPORTANT TIPS TO INCREASE YOUR SELF-CONFIDENCE. Finally, transactional leaders focus on environmental conditions in which they are able to interact with the followers to increase motivation through goal setting, increase action-to-action and outcome-to-outcome expectancies, and influence follower skills and abilities through training. Such conditions may include increasing resources, technology, social support and equipment. In stable predictable environments, organizations tend to be strictly controlled and formalized. Therefore, in situations where the conditions dynamically change it is likely to be difficult for them to provide a feasible solution. In cases when tasks are not analyzable, standard operating procedures are not helpful, and progress cannot be easily measured, employees are likely to be frustrated and discouraged, and transactional leadership might not be applicable. Transactional leaders usually operate within the boundaries of the existing system, emphasize process rather than substance as means of control and are effective in stable and predictable environments. Below are a few characteristics of Transactional Leadership: Extrinsic approach. However, there are conditions that require a leader with characteristics more than those of the transactional leader. This may present a challenge when a problem requires a creative decision-making strategy. The leaders, who engage in transactional behaviours, focus mainly on low order construct such as broad performance goals due to the absence of experience which is required in order to focus on higher level organizational visions.


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