Question 4 (b)
Transformational leadership and how it differs from transactional leadership
9 marks
- Time to write
- About 18 minutes
- Notes
- Crux notes
Question
Question 4 (b) · 9 marksExplain transformational leadership. In what way is it different from transactional leadership?
Reworded from the university paper; the task is the same. The original paper belongs to the University of Delhi. See DU's question bank.
Before you write
Read off the question and its marks
Read from the question
- Explain…What…?Two asks in one question: answer both.
Write it in this order
- Read; underline the asks; jot your points 1 min
- 1 Meaning of transformational leadership 2 marks 2 min
- 2 Its components 2½ marks 5 min
- 3 Transactional leadership 1 mark 2 min
- 4 Differences 3 marks 6 min
- 5 Conclusion ½ mark 1 min
- Check: every ask answered, key terms underlined 1 min
Easy marks
- Meaning of transformational leadership (step 1, 2 marks): a clear definition and a line on what it covers. It opens the answer, so it takes a minute or two.
Short on time? Keep step 1 short. Trim steps 2 and 4 evenly rather than skip one: each is capped at its own marks. End with step 5 in a line or two.
Try it first. About 18 minutes for 9 marks. Write it out, then open the solution.
Solution
Hover or tap a marked figure, like 72,000, to see how it is made and where else it appears.
Meaning of transformational leadership
Transformational leadership is a style in which the leader inspires followers to look beyond their own self-interest, commit to a shared vision and achieve more than they thought possible, while developing their own abilities in the process. Such leaders change, transform, the values, beliefs and aspirations of their followers and, through them, the organisation. They are especially effective in times of change, crisis and innovation.
1At the whiteboard she sketches where the team could be in five years—and they lean in.
TransformationalThe transformational leader inspires followers with a vision and develops them to perform beyond expectations.
2At the warehouse, targets met, the supervisor hands over the promised envelope.
TransactionalThe transactional leader exchanges rewards for performance.
Components of transformational leadership
- Idealised influence (charisma). The leader acts as a role model, shows high ethical standards and earns followers' trust, respect and identification.
- Inspirational motivation. The leader communicates a compelling vision, sets high expectations and creates enthusiasm and team spirit.
- Intellectual stimulation. The leader encourages followers to question assumptions, think creatively and approach old problems in new ways, without public criticism of mistakes.
- Individualised consideration. The leader pays attention to each follower's needs and growth, acting as a coach and mentor and delegating to develop them.
Transactional leadership is based on an exchange: the leader clarifies roles and targets, and followers receive rewards for meeting them and corrective action when they do not. It works through contingent reward and management by exception (intervening only when performance deviates from standards). It keeps the existing system running efficiently.
| Basis | Transformational leadership | Transactional leadership |
|---|---|---|
| Basis of influence | Vision, values, inspiration | Exchange of rewards for performance |
| Purpose | Change and develop people and the organisation | Maintain efficiency of the present system |
| Motivation | Intrinsic: meaning, commitment, growth | Extrinsic: pay, bonus, penalties |
| Orientation | Long term, future-focused | Short term, task-focused |
| Leader's role | Role model, visionary, coach | Supervisor, monitor of targets |
| Attitude to the status quo | Challenges it | Works within it |
| Followers' outcome | Performance beyond expectations | Performance as agreed |
| Relationship | Emotional and personal | Contractual and impersonal |
| Best suited to | Dynamic, uncertain conditions; innovation | Stable, routine conditions |
Example. The head of a struggling public hospital who persuades staff that it can become the most trusted hospital in the district, involves doctors and nurses in redesigning patient care, and mentors young administrators is transformational. A supervisor who fixes daily targets for billing clerks and pays incentives for meeting them is transactional.
The two styles are not opposites to choose between; transformational leadership builds on a base of sound transactions. Effective leaders keep clear exchanges for routine work and inspire people for change and growth. A practical test: when the task is routine and the targets are clear, transactional methods are usually enough; when people must change how they work, only a leader who wins their belief will carry them. Transformational leadership also carries a risk: a charismatic leader without sound values can lead followers in the wrong direction.
Where the 9 marks sit
| # | Component | Marks |
|---|---|---|
| 1 | Meaning of transformational leadership | 2 |
| 2 | Its components | 2.5 |
| 3 | Transactional leadership | 1 |
| 4 | Differences | 3 |
| 5 | Conclusion | 0.5 |
| Total | 9 |
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