Leadership is an essential element in any organization or team. It plays a crucial role in achieving organizational goals and driving performance. Over the years, there have been various leadership styles, each with its own unique characteristics and benefits. However, two of the most prominent leadership styles are transactional and transformational leadership. While both styles have their advantages and disadvantages, there is a growing recognition that transformational leadership is more effective in inspiring positive change and driving long-term success. As a result, transactional leadership tends to be seen in a somewhat lesser light.
In this blog, we will explore the differences between transactional and transformational leadership styles and examine the benefits of adopting a transformational and transactional leadership approach. We will also be discussing that there can actually be a symbiotic relationship between the two leadership styles and that one cannot do without the other.
Transactional VS Transformational Leadership Style
We will start by understanding what each style of leadership is all about!
Transactional leadership
Transactional leadership is a style of leadership that focuses on the exchange of rewards for performance. The leader sets clear goals and expectations for their team, and in return, offers rewards such as bonuses or promotions for meeting those goals. While this approach can be effective in achieving short-term results, it may lack the ability to inspire and drive positive change in the long run.
Transformational leadership
Transformational leadership on the other hand, focuses on inspiring and motivating individuals to go above and beyond their normal expectations. It is a leadership style that seeks to transform individuals and organizations, rather than just maintaining the status quo. Transformational leaders inspire and motivate their team through a shared vision, intellectual stimulation, individualized consideration, and inspirational motivation.
So, what exactly are the benefits of both the leadership style?
Transactional leadership provides a clear structure and set of expectations for team members, which can help to ensure that goals are met and tasks are completed efficiently. This leadership style typically involves a rewards system, where team members are incentivized to meet or exceed expectations. This can help to motivate employees and promote a culture of accountability and performance.
On the other hand, transformational leadership focuses on inspiring and motivating team members to go above and beyond their normal expectations. This approach fosters creativity and innovation by encouraging team members to think outside the box and challenge traditional ways of thinking. By creating a shared vision and treating team members as individuals with unique strengths and abilities, transformational leaders inspire their team to perform at their best.
Another benefit of transformational leadership is its focus on personal growth and development. By providing individualized consideration and investing in the development of their team members, transformational leaders create a culture of continuous learning and improvement. This not only benefits the individual team members but also contributes to the overall success of the organization.
In addition, transformational leadership encourages collaboration and teamwork. By creating a shared vision and fostering an environment of intellectual stimulation, transformational leaders inspire their team to work together towards a common goal. This can lead to increased innovation, improved decision-making, and a stronger sense of teamwork and collaboration.
Does this mean that Transformational Leadership is the ‘superior’ leadership style?
Indeed, there is a growing recognition that transformational leadership is more effective in inspiring positive change and driving long-term success. However, it is important to note that transactional and transformational leadership can actually have a symbiotic relationship because they are not mutually exclusive! Whilst transactional and transformational leadership styles may seem like opposing approaches, we will introduce you to the concept that the two leadership styles can actually complement each other when used together in the right way!
To simply put it, we can focus on the unique benefits of both leadership styles and how they can complement each other to create a powerful symbiotic relationship:
Transactional leadership provides the structure and stability needed to achieve short-term goals and drive performance. This approach establishes clear expectations and rewards for meeting those expectations, which can motivate employees to perform at their best. However, transactional leadership alone may not be sufficient in driving long-term success or inspiring positive change.
Transformational leadership, on the other hand, focuses on inspiring and motivating employees to go beyond their normal expectations and achieve a shared vision. This approach can foster innovation, creativity, and collaboration, which are essential for long-term success and positive change. However, without the structure and stability provided by transactional leadership, transformational leadership may lack the necessary framework to achieve tangible results.
When used together, transactional and transformational leadership styles can create a powerful symbiotic relationship. Transactional leadership can provide the foundation for stability and efficiency, while transformational leadership can provide the inspiration and vision needed to drive positive change and long-term success. By combining these two approaches, leaders can create a dynamic and effective leadership style that can achieve both short-term goals and long-term success.
Conclusion
In conclusion, transactional and transformational leadership styles are not mutually exclusive, and when used together, they can create a powerful symbiotic relationship that can drive positive change and long-term success. By balancing structure and stability with inspiration and vision, leaders can create a leadership style that can achieve both short-term goals and long-term success.
So, how can you learn more?
At Aventis, we understand that being a leader is not an easy task, and that there is no one set leadership style that must be used to be successful. We can help you inspire positive change in your team by creating your own unique blend of transactional and transformational leadership styles! We have the perfect course to guide you on this leadership journey. In our one-day workshop on ‘How To Inspire Positive Change: From Transactional to Transformational Leadership‘, you will be guided by our experienced trainer with extensive leadership experience. Through an interactive and experiential trainer-led workshop with participant-led small group discussions and case studies, you will be guided to appreciate the symbiotic relationship between transactional and transformational leadership and gain practical tips on how to be the leader your followers look up to!
