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Different managers employ distinctly different management styles, ranging from

relatively hands-off, facilitative styles to autocratic, micromanaging styles.Managers can also employ different motivational strategies and techniques to boost

employee performance or accomplish internal change. Transformational and

transactional leadership are polar opposites when it comes to the underlying

theories of management and motivation. Understanding the difference betweentransformational and transactional leadership is crucial for anyone pursuing acareer in management.

Transactional LeadershipTransactional leadership styles are more concerned with maintaining the normalflow of operations. Transactional leadership can be described as "keeping the ship

afloat." Transactional leaders use disciplinary power and an array of incentives to

motivate employees to perform at their best. The term "transactional" refers to the

fact that this type of leader essentially motivates subordinates by exchangingrewards for performance.

A transactional leader generally does not look ahead in strategically guiding anorganization to a position of market leadership; instead, these managers are solelyconcerned with making sure everything flows smoothly today.

Transformational Leadership

A transformational leader goes beyond managing day-to-day operations and crafts

strategies for taking his company, department or work team to the next level of

performance and success. Transformational leadership styles focus on team-building, motivation and collaboration with employees at different levels of an

organization to accomplish change for the better. Transformational leaders setgoals and incentives to push their subordinates to higher performance levels, whileproviding opportunities for personal and professional growth for each employee.

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Transactional Leadership Transformational Leadership

* Leaders are aware of the link between the effort

and reward

* Leadership is responsive and its basic

orientation is dealing with present issues

* Leaders rely on standard forms of inducement,

reward, punishment and sanction to control

followers

* Leaders motivate followers by setting goals andpromising rewards for desired performance

* Leadership depends on the leaders power to

reinforce subordinates for their successful

completion of the bargain.

* Leaders arouse emotions in their followers w

motivates them to act beyond the framework o

may be described as exchange relations

* Leadership is proactive and forms new expe

in followers

* Leaders are distinguished by their capacity t

inspire and provide individualized considerati

intellectual stimulation and idealized influenc

followers

* Leaders create learning opportunities for the

followers and stimulate followers to solve pro

* Leaders possess good visioning, rhetorical amanagement skills, to develop strong emotion

with followers

* Leaders motivate followers to work for goal

beyond self-interest.