Leadership & Management Discussion for Lesson 9: Transactional and Transformational Leadership

Lesson 1 Reading Objectives The student will comprehend the characteristics of transactional leadership. The student will comprehend the characteristics of transformational leadership. The student will comprehend the primary differences between transformational and transactional leadership. The student will comprehend the impacts that transformational leadership can have on a unit.

Lesson 9 Discussion Objectives The student will comprehend the primary differences between transformational and transactional leadership. The student will comprehend the impacts that transformational leadership can have on a unit.

Characteristics of Transactional Leadership Occurs when leader and follower are in an exchange-based relationship Goal is to meet other party’s needs Relationship between leader and follower tends to be transitory Effective only as long as relationship is of mutual benefit

Characteristics of Transactional Leadership (Cont.) Contingent Reward - Contracts exchange of rewards for effort - Promises rewards for good performance - Recognizes accomplishments

Characteristics of Transactional Leadership (Cont.) Active: Management by Exception - Searches for deviations from standards - Takes corrective action Passive: Management by Exception - Abdicates responsibility & avoids making decisions (Laissez-Faire) - Intervenes only if standards not met

Characteristics of Transformational Leadership Strong Transformational Leaders perform exceptionally well in crisis Have a vision of what a new organization can be Strong bonds cultivated between leader and subordinates Followers willingly subordinate themselves Strong emotional bonds develop over time

Characteristics of Transformational Leadership (Cont.) Charisma - Provides vision and sense of mission - Instills pride - Earns respect and trust Inspiration - Communicates high expectations - Uses symbols to focus effort - Expresses important purposes in simple ways

Characteristics of Transformational Leadership Intellectual Stimulation - Promotes intelligence and rationality - Values innovative problem-solving Consideration for the Individual - Gives personal attention - Coaches - Advises

Primary Differences between Transformational & Transactional Leadership Leadership act does not bind leader and followers in mutual and continuing pursuit of a higher purpose Transformational Leader Builds & instills vision based on organizational values. Enjoys good relationship with subordinates Leader contributes more Employees exert greater efforts for leader Leaders and followers raise one another to higher level of motivation and morality

Primary Differences between Transformational & Transactional Leadership Categories Transactional Transformational Leader’s source of power Rank, position Character, competence Follower reaction Compliance Commitment Time frame Short term Long term Rewards Pay, promotion, etc. Pride, self-esteem, etc. Supervision Important Less important Counseling focus Evaluation Development Where change occurs Follower behavior Follower attitude, values Where “Leadership” found Leader’s behavior Follower’s heart

Impacts of Transformational Leadership on Unit Image Recruiting Selection Promotion Transfer Development Training Approaches to training Leadership education Job design and assignment Organizational structure

Next Class Foundations of Control Read: Leadership and Management, Chapter 10

Summary Primary differences between transformational and transactional leadership Impacts transformational leadership can have on a unit

Questions? ???