How can you tell if your leadership style is transactional or transformational?

1 What is transactional leadership?

Transactional leadership is based on the idea that leaders and followers have a mutual exchange of benefits. Leaders set clear expectations and goals for their followers, and provide them with feedback, rewards, or consequences depending on their results. Followers comply with the leaders' directives and receive recognition, incentives, or sanctions for their work. Transactional leadership is often effective in situations that require consistency, efficiency, and adherence to rules and standards. However, it can also limit creativity, innovation, and engagement among followers, and create a culture of dependency and compliance.

2 What is transformational leadership?

Transformational leadership is based on the idea that leaders and followers have a mutual influence and learning process. Leaders create a compelling vision and mission for their followers, and encourage them to develop their potential, values, and beliefs. Followers trust and respect the leaders' charisma, authenticity, and moral example, and become more committed, motivated, and empowered to achieve the vision. Transformational leadership is often effective in situations that require change, adaptation, and growth. However, it can also pose challenges in terms of accountability, realism, and sustainability.

3 How to identify your leadership style?

There is no definitive test or measure to determine your leadership style, but you can use self-reflection and feedback tools to gain insight into your tendencies and preferences. Ask yourself questions such as how you communicate goals, monitor and evaluate performance, reward or correct behavior, motivate and inspire followers, and relate to them on a personal and professional level. You can also solicit honest and constructive feedback from followers, peers, or mentors on your leadership style and how it impacts the organization. Formal or informal methods such as surveys, interviews, or conversations can be used to collect and analyze their opinions and suggestions.

4 How to compare transactional and transformational leadership?

To compare transactional and transformational leadership, you can use some frameworks and models that have been developed by researchers and practitioners. One of the most widely used models is the Full Range Leadership Model (FRLM), which consists of nine dimensions that describe different aspects of leadership behavior. The model divides the dimensions into three categories: passive-avoidant, transactional, and transformational. The passive-avoidant category includes laissez-faire and management-by-exception passive, which are considered ineffective and detrimental leadership styles. The transactional category includes contingent reward and management-by-exception active, which are considered moderately effective and acceptable leadership styles. The transformational category includes idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration, which are considered highly effective and desirable leadership styles.

5 How to adapt your leadership style?

While transactional and transformational leadership have their strengths and weaknesses, they are not mutually exclusive or fixed. You can use both styles depending on the context, the goals, and the needs of your followers and the organization. For example, you can use transactional leadership when you need to ensure quality, productivity, and compliance, and when you have clear and measurable objectives and criteria. You can use transformational leadership when you need to foster innovation, collaboration, and commitment, and when you have ambiguous and complex challenges and opportunities. You can also combine elements of both styles to create a balanced and flexible leadership approach that suits your situation and personality.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?