Transformational vs Transactional Leadership in Fast Food Restaurant

This presentation evaluates the difference between transformational and transactional leadership in a practical work environment of a fast food restaurant company. It covers the characteristics, use, and impact of both leadership styles with relevant examples.

LEADERSHIP IN
CHANGING
CONTEXT
Differentiate Transformational and Transactional
leadership and evaluate how the two concepts translate
into a practical work environment.

Introduction
Provided presentation is based on evaluation of two
leadership styles which are transformational and
transactional leadership and their difference in the
practical yet evolving work environment in relation to
fast food restaurant company is covered under this
presentation. Further relevant examples will be
included for better understanding of subject matter.

Transformational
leadership
Transformational leadership is referred as a
leadership method that leads to individual
change. It formulates affirmative and valuable
changes in the subordinates with the ultimate
objectives of developing subordinates into
leaders. Further, leaders as well as followers
raise each other to greater levels of motivation
and principles.

Transformational leadership in
fast food restaurant
 In this form of leadership,
managers will make decision
by considering other staff by
taking their suggestion to
provide better services to the
customers. For example chef
can suggest in menu designing
and waiters can suggest
approach for service deliveries
to increase customer
satisfaction. All employees will
work together instead of
following hierarchal structure.

Characteristics of
transformational leadership
 Transformational leader manages will manage their
work on own in restaurant without much guidance of
owners, and are self-motivated and make use of the
same to lead organization to follow the right path.
 Transformational leaders have the capability to take
appropriate risks as per environment of restaurant
which is considered as the core characteristic. They
make use of intelligence collected by subordinates to
make better decisions. The leader asks for inputs
from the subordinates to make risk-related decisions
that stimulate growth.

Characteristics of
transformational leadership
 Transformational leaders are most inspiring as
per restaurant culture, they have the capability to
encourage others and treat employees in a
valuable manner. Transformational leaders
conduct one the basis of own passion and inspire
other to indulge in the whole vision and execute
the same on all chain of restaurant management.

Transactional leadership
 Transactional leadership style concentrates on
performance, direction and organization. In this, leaders
support compliance through followers by penalizing
and rewarding. It is engaged in motivating and leading
followers by attracting to their personal self-interest. In
this leadership style, executives are based on
punishments and awards to attain better job
performance from their subordinates.

Transactional leadership in fast
food restaurant
In this leadership approach, managers in
restaurant will follow guidelines of owners and
they will motivated by reward strategy. For
example if leaders attains target they will get
bonus and in case of under performance such
as excessive customer grievances they will
get penalized.

Characteristics of transactional leadership
A transactional leader targets to extract
expected performance in restaurant from the
subordinates by encouraging them on an
exterior basis. Rewarding is conducted for
good behavior of employees such as
providing good food and sercices, and
meeting or surpassing the goals beyond the
organization expectations. For example if
employees have maximum tips or a chef
exceeds sales of dish then they will rewarded
for the same. On the other hand, employees
are penalized for any type of misconduct or
deviation.

Characteristics of transactional leadership
The transactional leadership has the
characteristic of reward performance, the
leader watches the performance of all
employees on the basis of particular
objectives and targets which are been set
already. In this leader of fast food restaurant
will supervise all employee and provide
rewards as the performance of workers.
They rapidly response when employees to
attain a pre-determined goal and will award
them in an appropriate manner.

Difference between transformational and
transactional leadership
If the fast food company uses transactional leaders, then they would be focused on the status quo, whereas if
they implement transactional leaders then they are highly oriented towards change. Transactional leadership
makes sense with pre-determined goals and the boundaries of the fast food company whereas transformational
approach does challenging with the status quo and is highly oriented towards future. Transactional leadership is
emphasized on the restaurant as a whole, awards, performance evaluation and are related with tasks and results,
on the other hand, transformational leadership aims on engagement and motivation with the future vision.

Use of transformational leadership
style in Fast food restaurant
 Transformational leaders can have a huge impact on the
leadership in fast food restaurant. This leadership seems
to be related with higher performance level and assaying
behavior in practical environment context. Moreover, the
subordinates that are apparent as transformational leaders
reflect reinforced identification with the extreme level of
self-efficacy in relation to their work.

Use of transformational leadership
style in Fast food restaurant
Transformational leadership in context with practical
hospitality environment, are likely to support follower
contextual and related performance. Development of this
leadership seems to be worthwhile when the leaders give
their highest potential in leadership roles. The most stable
trait is said as charisma, and there is higher possibility of
scope of development in the same.

Use of transactional leadership
style in Fast food restaurant
 Transactional leadership fits with routine tasks
which are considered as measurable, In this
leadership style, leader provides employee
specific attention with optimum coaching and
motivating personal development. This
leadership is all about, employee performance,
job satisfaction, measurable and outcomes.
Rewards are provided to employees for
surpassing their performance along with an
additional stimulus.

Use of transactional leadership
style in practical environment
Transactional leadership fosters employees to harder in
restaurant, as they will get more rewards in turn. In
addition, employee will consider themselves as a
significant and valuable part of the restaurant, which will
help in attaining shared mission and goals. When the
leader expectations are met, employees are entitled to
rewards and bonuses which encourage them to perform
much better next time.

Leadership in restaurant
company
 Both transformational and transactional
leadership, is demonstrated by the
capability to formulate and communicate
value and vision while adapting the
restaurant company to rapidly changing
environment. These leadership styles
positively impacts cognitive and emotional
trust, that will help in stimulating the brand
image while building trust of restaurant
company.

Summary of difference among transformational and transactional
leadership

Conclusion
The presentation shows that both leadership
styles are entirely different and have their
own pros and cons. By considering their
impacts, drawbacks, benefits and
consequences, companies can improvise
their management style in order to achieve
their desired goals.

References
 Banks, G.C., McCauley, K.D., Gardner, W.L. and Guler, C.E., 2016. A
meta-analytic review of authentic and transformational leadership: A test
for redundancy. The Leadership Quarterly, 27(4), pp.634-652.
 Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry,
choice, and leadership. John Wiley & Sons.
 Engelen, A., Gupta, V., Strenger, L. and Brettel, M., 2015. Entrepreneurial
orientation, firm performance, and the moderating role of transformational
leadership behaviors. Journal of Management, 41(4), pp.1069-1097.
 Goleman, D., 2017. Leadership That Gets Results (Harvard Business
Review Classics). Harvard Business Press.
 McCleskey, J.A., 2014. Situational, transformational, and transactional
leadership and leadership development. Journal of Business Studies
Quarterly, 5(4), p.117.
 Nguyen, T.T., Mia, L., Winata, L. and Chong, V.K., 2017. Effect of
transformational-leadership style and management control system on
managerial performance. Journal of Business Research, 70, pp.202-213.

Thank you