what are the advantages and disadvantages of a transactional leader? and with change in an organisation why it is better to adopt a tranformational style of leadership?
what are the advantages and disadvantages of a transactional leader? and with change in an organisation why it is better to adopt a tranformational style of leadership?
Transactional style of leadership
The transactional style of leadership is also known as managerial leadership and is one of the most common types of leadership styles that the managers of the organizations follow. Transactional leadership, as the name suggests, believes that every task that is performed by the employees of the organization is a transaction. The employee performs the task in exchange for a reward. The reward can be both monetary or psychological. Transactional leaders have extreme faith in policies and rules and regulations. They demand their subordinates to strictly abide by the guidelines and work policies when performing their duties in the organization.
Advantages
· Transactional leadership may be practiced better in the business organizations that may have evolved from being a "no rules" or chaotic organization.
· Transactional leaders are most successful in situations of optional leaders including the emergency and the crises.
· The leadership style is also well suited for the handling of projects that may have to be carried out and accomplished in a specific way. In these circumstances, the emphasis and focus are on getting the work done, as a crisis and emergency and the conditions prevalent may not allow the firm to accomplish the goals.
· Therefore, leaders focus solely on efficiency and productivity while not chasing transformations and larger visions. In these instances, the transactional leaders may lay down the main goals, stabilize or even increase productivity and make the operations efficient.
· For projects that need to be carried out in a specific way, task focus is a huge priority, and transitional leaders can do better than the others. It is so because these leaders emphasize more on the processes and not the forward/future thinking vision/concepts/ideas.
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