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Transactional Leadership:

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Transactional leader supervises the organization on daily operations, team performance, follow standards to achieve short term goals. They usually think inside the box and not much concerned about future growth. They follow what should be done for the growth of the firm by monitoring the front-line operations (Kabeyi,2018). Transactional leader makes sure employees are motivated by offering rewards or incentives to make a steady flow of work. This type of leader is responsible to find the reasons for failures if a team is not in target with their production. Leaders check performance, provide constructive feedbacks, think of ways to improve efficiency, focus on structural policies.

Vince Lombardi is one the leader who followed transactional style by training his team to defend many other teams and achieved over 5 championships (Ansary & Ansary, 2019). In my workplace, there are number of managers who encourages their team, stick to short term goals, maintains the growth, monitoring production improvements, often give rewards which resulted in long term and successful working employees in the organization

Transformational Leadership:

Transformational type of leaders thinks beyond routine operations, frame strategies to make innovative developments to the organization, make changes in the system to support employees. They motivate followers to share their knowledge, encourages them to be innovative to find ways of improving the company and goals. Leaders provide necessary trainings and resources to employees. They discuss the strategies and finalize the decisions by coordinating with different levels of the firm to make sure of positive changes (Kabeyi,2018).

Reed Hastings improved Netflix work culture and motived employees to take responsibilities and ownership to make the firm a successful one. He combined transformational leadership with the creative knowledge to reframe few practices inside the organization like changes in travel policy, time off flexibility, eliminated any formal reviews, encouraged employees to take responsibility of their new innovations (Goncalves, 2018).

Transactional Vs Transformational leadership:

Both theories are beneficial to the company. Its effectiveness depends on the type of business whether small or large firms, goals and visions and its operational structure. For example, manufacturing companies benefit from transactional style and organizations which need creativity like amazon will be empowered if they follow transformational style. Considering a larger organization, innovation is always the driving force in order to reach success and to be unique while equally monitoring the daily operations to stay in the game.

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