Contemporary

views on
leadership
MCD 2040 Managing
people and
organizations

Transactional Vs
Transformational
• Setting very clear goals and targets; and

• Monitoring and guiding their employees

to work towards established goals/works
by exchanging rewards for their
achievements.

• Rewards can refer to the whole range of

non-financial rewards ranging from the
more tangible (extra holiday, preferred
work, time off) to the less tangible
(praise, visibility, recognition).

• If done successfully, this style will

Transactional Leaders:
produce performance at the expected
levels. Lead primarily by using social exchanges (or
transactions)

NAME OR LOGO 2
 Foster Synergize Incentivise
: Transformational Provide appropriate Focusing on creative Gifting employees

Leadership resources solutions to unusual,

unexpected problems
random rewards for
helping out other
colleagues
Stimulates and inspires followers to transcend their own
self-interests for the proficiency of a firm.

Manifesting work spirit in employees. Monash 3

NAME OR LOGO
 Characteristics of
transformational leader
Individualised Consideration (IC). Demonstrates concern for their followers, treats them
as individuals, gets to know them well and listens to both their concerns and ideas. Acts as
mentors to those who need help and sympathizes with them during personal adversities.
Intellectual Stimulation (IS). Stimulate the followers to think through issues and
problems for themselves and thus to develop their own abilities. Leaders encourage workers
to come up with easy solutions to complex work problems.
Inspirational Motivation (IM). Able to motivate the followers to superior performance.
Vesting a clear work ethic, an inner spirit that the followers are able to accept and strive
towards.
Idealised Influence (II). Regarded as a role model or metaworker because they exhibit
certain personal characteristics or “charisma”. High on morality, trust, integrity, honesty and
purpose.

Monash
NAME OR LOGO 4
Key Differences Between Transactional and
Transformational Leadership
Transactional
○ Transactional Leadership is a type of leadership
whereby rewards and punishment are used as a
basis for initiating the followers.
○ In transactional leadership leader, is lays stress on
his relationship with followers.
○ Settled environment.
Transformational
○ Transformational Leadership is a leadership style in
which the leader uses his charisma and enthusiasm
to influence his followers.
○ In transformational leadership leader lays stress on
the values, beliefs and needs of his followers.
○ Turbulent environment

○ Improving the present conditions of the ○ Changing the present conditions of the
organisation. organisation.
○ Bureaucratic(Hierarchy) System ○ Charismatic system

NAME OR LOGO 5
Case study
Summary

NAME OR LOGO 6
.

Thank
You
Darian Albuquerque

+91 9769812387