Question

Select either transformational or transactional theory. Briefly draw some comparisons between them. Often these two theories are looked at it contrast to each other but is it possible for a leader be both? Can they be complimentary to each other? Have you ever seen a leader use both styles? Was it effective? Why or why not?

Answer 1

Transactional or managerial leadership is using disciplinary power to maintain daily business operations and exchanges reward for performance.
Transformational leadership is about framing strategies focusing on motivation, team building and thinking about the future direction of the firm.
Transformational leaders use their charisma to influence their followers while Transactional leaders use punishment and rewards to influence their followers. Transformational leadership is proactive in nature while Transactional leadership is reactive in nature. In a Transformational leadership, there is more than one leader while in Transactional leadership there is only a single leader. A Transformational leader gives more emphasis on the needs, beliefs and values of the followers while a Transactional leader gives more emphasis to follower relationships. Transformational leadership is good for the turbulent times while Transactional leadership is suitable in a stable and settled environment. Transformational leadership is charismatic and visionary while Transactional leadership is bureaucratic. Transformational leaders promote creativity and innovation in the workplace while Transactional leaders are focused on planning and execution.
I have seen a fast food restaurant owner exhibiting both these leadership styles. He maintains the daily operations of the fast food restaurant by supervising the front line staff and at the same time, he frames strategies to take the fast food restaurant to the next level. This shows that both leadership styles can complement each other. This combination of both Transformational leadership and Transactional leadership is effective in the case of the fast food restaurant owner. The owner of the fast food restaurant is a single person handling his five frontline staff on daily activities with proper plan and execution and at the same time he aims to develop his fast food restaurant with new menu and recipes showing creativity and innovation to attract more customers and develop his fast food restaurant in the future by establishing a chain of restaurants.