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

2. 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.

3. 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.

4. 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

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

6. 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

7. 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

8. 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

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

10. 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

11. 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

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

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

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

15. Questions?
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