Transformational vs Transactional Leadership

This assignment explores the impact of different leadership styles on employee motivation and organizational performance. It specifically compares and contrasts transformational and transactional leadership, examining their strengths, weaknesses, and influence on employee behavior and productivity. The analysis draws upon relevant theories and research to provide insights into effective leadership practices that enhance organizational success.

Organizational Behavior

Introduction
The motivation level of the employees plays a great role to operate the functions of the
organization. It is seen that the employee should be motivated in a proper manner so that the
efficiency and productivity can be enhanced (Yidong and Xinxin, 2013). There are many
leadership theories that should be taken into consideration by every leader for enhancing the
level of motivation of the employees who are working in the organization. It is seen that
the mission to motivate employees should be clear and the leaders should adopt effective
relationship with the employees so that they can help them to work efficiently. In this paper,
transactional and transformational leadership is taken into consideration (Northouse, 2015).
Analysis
Transformational Leadership Style
The transformational leadership is related to give motivation, inspiration and also help
the employees to conduct the activities of the organization in a proper manner. When
transformational leadership is taken into consideration, then it is analyzed that the employees
work with full dedication towards the work and also assist other employees to work with
dedication in the organization (Vandenabeele, 2014). Transformational leadership enhances the
intrinsic value of the employees who are working in the organization. Intrinsic value can be
created when the respect is given to the need of autonomy. The employees should feel control on
their own health and should be ready to support when the actions are taken into consideration. To
create intrinsic motivation environment, it is essential to make the process easy to monitor and
celebrate the progress. It takes place when the employees of the organization give their
contribution towards their working pattern. The communication also enhances the quality of life
and financial stability. The leaders who follow this style have a clear vision towards the mission
of the organization. The leaders outline the steps that are required to the company for carrying

out the day to day activities of the organization. It involves the employees to attain the objectives
and a goal of the organization (Torres, Espinosa, Dornberger and Acosta, 2017).
Transactional leadership Style
Transactional leadership is related to the leader who doesn't involve the employees of the
organization unless the mistake takes place. When the mistake occurs, it is seen that the leaders
take corrective steps at that time. Transactional leadership is also related to the leaders who want
the same procedures in the company that should be followed by the employees of the
organization. It is seen that the transactional leaders do not give motivation to the employees and
also don't assist them in enhancing the career growth (Miner, 2015).
As analyzed to attain success in the market the organization should take into
consideration effective leadership styles. Transactional leadership is considered as the most
important leadership style that helps to give guidance to the company. To enhance the motivation
level and to praise the employees influences the workers to perform in a better way. So, this type
of leadership is an effective leadership that gives rewards to the employees for the better
performance and also gives punishment for the giving unsatisfied performance (Dumdum, Lowe
and Avolio, 2013). Transactional leadership style enhances the skills of the employees and also
gives the motivation to perform better. This leadership style not only offers rewards to the
employees but also minimizes the work pressure and enhances the moral behavior.
By giving rewards to the employees it can encourage them to perform better in the tasks.
This will not only result in the healthy competition but also enhances the performance of the
employees in future. Rewards are considered as a most important motivational tool that should
be used by the leader to give the positive impact on the operations of the organization. The
leaders are born to enhance the motivational level of the employees to gives best towards their
work. Leaders also create a positive environment so that workers can enhance their level of
productivity. The organization should focus on giving proper leadership that gives motivation
and creates innovative behavior. So, to enhance the profitability it is essential that company

should give focus on motivating the employees of the organization (Choudhary, Akhtar and
Zaheer, 2013).
Conclusion
The main purpose of the study is to take into consideration the effectiveness of leadership
style in the organization. This paper has given focus on transactional and transformational
leadership styles, which enhances the motivation of the employees who are working in the
organization. After analyzing the leadership style it is seen that motivation is an important aspect
that enhances the profitability and productivity of the organization. If the employees are
rewarded then the performance levels of the employees get boosted and also the company attains
the goals and objectives in an effective manner. Transactional and transformational leadership is
an effective leadership style that should be taken into consideration by the leaders of the
organization. So, by proper evaluation, it can be said that the leadership behavior may influence
the motivation of individuals in the organization.

References
Yidong, T. and Xinxin, L., 2013. How ethical leadership influence employees’ innovative work
behavior: A perspective of intrinsic motivation. Journal of Business Ethics, 116(2), pp.441-455.
Northouse, P.G., 2015. Leadership: Theory and practice. Sage publications.
Vandenabeele, W., 2014. Explaining public service motivation: The role of leadership and basic
needs satisfaction. Review of Public Personnel Administration, 34(2), pp.153-173.
Torres, F.C., Espinosa, J.C., Dornberger, U. and Acosta, Y.A.C., 2017. Leadership and
Employees’ Innovative Work Behavior: Test of a Mediation and Moderation Model. Asian
Social Science, 13(9), p.9.
Miner, J.B., 2015. Organizational behavior 1: Essential theories of motivation and leadership.
Routledge.
Dumdum, U.R., Lowe, K.B. and Avolio, B.J., 2013. A meta-analysis of transformational and
transactional leadership correlates of effectiveness and satisfaction: An update and extension.
In Transformational and Charismatic Leadership: The Road Ahead 10th Anniversary
Edition (pp. 39-70). Emerald Group Publishing Limited.
Choudhary, A.I., Akhtar, S.A. and Zaheer, A., 2013. Impact of transformational and servant
leadership on organizational performance: A comparative analysis. Journal of Business
Ethics, 116(2), pp.433-440.