Transactional Versus Transformational Leadership

Transactional Versus Transformational Leadership

8/29/2017 8:00:00 AM   |   Comments: 0   |   Views: 102

I’ve heard it said many times that the best team members are those that are able to place the needs of their organization above their own personal needs.

I understand this concept but I fail to see this happening in the real world in which I exist. Can we really expect our valued team members to subordinate their own needs to our organization’s needs? I find this to be wishful thinking.

win/win scenario with Transactional leadership and Transformational leadershipPerhaps a more realistic expectation would be for everyone to get what they need out of a long-term working relationship, thus creating the ultimate win/win scenario. This means the organization benefits from the hard work of loyal team members and the team members have their needs met as well. Such a scenario does not occur without thoughtful and purposeful leadership.

There are two forms of leadership to consider when creating a win/win scenario between organizational and personal needs:

        
  1. Transactional leadership is based on a quid pro quo between the leader and staff. In a transactional relationship, the leader and team limit their involvement to financial concerns. In other words, the staff works and, therefore, receives a salary. This arrangement works on a superficial level if the staff’s only need is financial and the leadership expects nothing more than a warm body fulfilling daily obligations. Commonly, transactional leadership requires the establishment and mandatory compliance with numerous rules and regulations relating to staff behavior.
  2.     
  3. Transformational leaders are able to compel their staff to align their own individual needs with the needs of the organization so that fulfilling the needs of one fulfills the needs of the other. The relationship between the leader and their team is synergistic in that both parties experience higher levels of performance, commitment, and fulfillment based on mutually shared values and purpose.

win/win scenario with Transactional leadership and Transformational leadershipThe difference between transactional and transformational leadership has been the subject of numerous intellectual discussions over the past thirty years. The consensus opinion is that people will commit to shared purpose and values. They will only comply with rules and regulations.

Which form of leadership do you display? Do you have a transactional or transformational relationship with your staff? If the relationship is transactional, you are likely experiencing chronic staff problems related to turnover and staff accountability. If you have a transformational relationship, you likely have accountability and longevity in your staff, and find your relationship joyful rather than stressful.

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