TRANSACTIONAL LEADER vs TRANSFORMATIONAL LEADER.

HOW TO IDENTIFY A TRANSACTIONAL LEADER FROM A TRANSFORMATIONAL LEADER - 4 FUNDAMENTAL DIFFERENCES BETWEEN THE TWO

MOTIVATION - TRANSACTIONAL LEADERS reward in traditional way according to Joseph Chris.This means that subordinates are rewarded with something "substantial" (ex - Cash, Gifts, Certificates etc) for doing the desired behavior, and punished for deviation. TRANSFORMATIONAL LEADER are magnetic, they attempt to achieve positive results from employees by keeping them invested in projects, leading to an internal, high order reward system.

PRACTICAL - TRANSACTIONAL LEADERS are very practical or realistic.They tend to solve problems or deal with issues pragmatically, taking into account all realistic constraints and opportunities. TRANSFORMATIONAL LEADERS believe that anything is possible and are more likely to address the issues before they become problematic.

CHANGE - TRANSACTIONAL LEADERS are those kind of people who can work with the existing system or environment without feeling the need to change a part or overhaul everything. They do not seek to transform things, wanting everything to remain exactly as they are. TRANSFORMATIONAL LEADERS emphasize new ideas, seek to destroy the status quo and live in a world where change is the only constraint.

HIERARCHIAL - TRANSACTIONAL LEADERS place a lot of importance on Corporate Structure and Culture. It often compliments rigid Organization Hierarchy (for example) when reporting a problem or issue, the report is expected to pass through from the employees immediate leader before reaching the top management. Bypassing the Hierarchy could be taken as subordination. TRANSFORMATIONAL LEADERS create a flat organization, limiting and removing any trace of bureaucracy while creating an environment that is mentally stimulating and enjoyable. TRANSOFRMATIONAL LEADERS are seen as Role Models by others because of the way they behave and the values they espouse.

SOURCE - READ THIS TOPIC IN LINKED IN - BY GIFFORD THOMAS.