Transformational and transactional leadership

Overview

Transformational and transactional leadership, when each works, their drawbacks, the four elements of transformational leadership, and combining the two approaches.

What you need to know

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Questions from this subtopic

Each one with the model answer underneath.

1. 1

   What is transformational leadership?

   Model answer

   Transformational leadership inspires followers to share a vision and exceed their own expectations. The leader motivates through values, example and personal attention.

2. 2

   What is transactional leadership?

   Model answer

   Transactional leadership motivates followers through rewards for meeting targets and sanctions for failure. The relationship is an exchange.

3. 3

   How does transformational leadership differ from transactional leadership?

   Model answer

   Transformational leaders seek to change people's attitudes and commitment. Transactional leaders work within existing systems through rewards and targets.

4. 4

   When is transactional leadership effective?

   Model answer

   Transactional leadership suits routine, clearly defined work with measurable targets. Sales and processing teams often respond well to it.

5. 5

   When is transformational leadership effective?

   Model answer

   Transformational leadership suits times of change and work that needs creativity and commitment. Staff may go beyond their job descriptions.

6. 6

   What are the drawbacks of transformational leadership?

   Model answer

   Transformational leadership depends heavily on the leader's personality and energy. Staff may struggle if the leader leaves.

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