Transactional Leader and Transformational Leader

Transactional Leader as the word implies business or exchange. Burns, 1978, opined that a transactional leader is someone who leads though social exchange. It is a process that I simply call trade by batter, you do this for me, and you get that in return. A politician can be a transactional leader when he seeks to exchange one thing for another i.e. making promises and pulling through with the promises after an election. Also most business leaders are seen as transformational when they give out incentives to hard working subordinates.

On the other hand, transformational leadership is a style of leadership that resolves to new innovation and changes, it also deals with the everyday learning, Someone who transform a group or an organization and focusses on people(follower), Assisting them in actualizing their leadership potentials or possibility.

In this process of transformational leadership, A leader serves as a role model for his followers, He also inspires followers and have a real concern for his follower which is seen as a key element to get the sympathy of his followers and a Leader challenges his followers to be innovative and creative there by motivating his followers to be the best of the best or better than the leader themselves .Most Charismatic leaders might necessarily be transformational leaders.

A very good example of a Transformational leader can be General Electric Boss, Mr. Jack Welch who transformed the GE from a slow organization to one of the largest and profit earning organization in today’s world.

References:Burns, J.M. (1978). Leadership. New York: Harper & Row.Bernard M. Bass & Ronald E. Riggio (2006). Transformational Leadership (2nd ed.). Erlbaum.