This paper draws a comparison and contrast between the transformational leadership and transactional leadership. Two people relate to each other depending upon their level of exchange which can be anything ranging from money to material. The greater the exchange, the stronger the relation between the two becomes. Managers expect the employees to be more productive in order to be eligible for more and/or greater rewards. Therefore, the manager and the employee enter a deal, wherein the manager offers something in compensation for the increased productivity. Likewise, leaders tell the citizens the benefits they would gain by voting for him/her. Managers also have a system in place wherein they punish the employees for any misconduct that they might display in the workplace. “Unlike the rewards, punishment is not often mentioned ahead, but subordinates already have the general idea as it is usually stated and agreed in the terms and conditions of the organization to successfully achieve its goals” (Dems). Such a relationship between the manager/leader and the employees/citizens is termed as transactional and the manager/leader is a transactional leader. At several occasions, people do one another favors without expectations in return. For example, parents spend upon their children. They provide for them financially and are always there to assist them emotionally and psychologically. Not many parents do this because they expect a return from the children. Parents’ love for the children is unconditional.
Such an unconditional relationship between two or more people is called as transformational relationship. It is not uncommon for a leader to adopt the transformational leadership style. Leaders exhibiting transformational leadership work with the followers to achieve goals of mutual interest. In the course of the achievement of goal, the leader puts the followers at front and takes measures to help them develop. This way, the leader takes the followers to the next level in terms of their motivation, skill and the competence as a whole. Consequently, the followers feel an urge to rise above their self-interests so that superior goals can be achieved. Transformational leadership requires the leader to have a charismatic personality. The leaders need to have that additional inspiring force and charisma that motivates the followers to follow his/her instructions for reasons beyond their personal benefits. “Leaders are distinguished by their capacity to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers” (Babou). Transformational leaders activate emotions in others as a result of which, they feel motivated to act in a way that is more than a mere exchange of relations. They have a sound vision and management skills. On the other hand, “[Transactional] Leadership depends on the leader’s power to reinforce subordinates for their successful completion of the bargain” (Babou). Transactional leader know and make use of the association between efforts and rewards. Transactional leadership is responsive. It is directed at the achievement of present issues. One of the most fundamental elements of the transformational leadership is that they strive for change (“Transactional Leadership Vs.”). In fact, this is what makes the transformatio