In the first article on transactional and transformational leadership, we looked at the special features of the two leadership styles and showed how they differ. In the second part, we explain the practical relevance of the two styles. Find out in which situations the transactional leadership style makes more sense and where a transformational approach will get you to your goal faster. First, let’s revisit what basically distinguishes the two styles:
Transactional leadership | Transformational leadership |
Performance-oriented reward | Focus on intrinsic reward |
Leadership through active control | Passive leadership through vision & mission |
Leadership by exception | Intervening by constantly questioning the status quo |