Implementing Transactional and Transformational Leadership Styles

This presentation provides a comparative analysis of transactional and transformational leadership styles, illustrating their practical applications within a work environment, specifically within Nestle company's Human Resources (Department A) and Production (Department B) departments. Transactional leadership, emphasizing supervision, performance-based rewards, and adherence to standards, is proposed for the HR department, focusing on creating a structured work environment and clarifying the relationship between performance and rewards. Transformational leadership, which focuses on motivation, inspiration, and positive change, is suggested for the production department, aiming to enhance motivation, commitment, and value addition in production activities. The presentation further critically analyzes the potential outcomes of implementing each leadership style in their respective departments, including improvements in critical analysis, networking, and decision-making in HR, and enhanced product quality, employee retention, and resource utilization in production. The conclusion highlights that transactional leadership helps motivate employees through rewards and incentives, while transformational leadership fosters mutual motivation between employees and managers, ultimately contributing to a better working environment.

TRANSFORMATIONAL AND
TRANSACTIONAL
LEADERSHIP

TWO DEPARTMENTS
In nestle company two departments are taken.
One department is Human resource department and other
department is production department.
a.) Human resource (department A) : It is a major component
of employee well being and the responsibilities that are
considered are hiring, firing and considering the laws.
b.) Production (department B) : The department is engaged in
turning the inputs into finished goods by the process of
production. The manager of production is responsible to make
sure that raw materials are converted into finished goods.

TRANSACTIONAL LEADERSHIP
 Emphasizes on
overall performance, supervision and on the company.
 Rewards and punishments.
 Achieving standards

CHARACTERISTICS OF TRANSACTIONAL
LEADERSHIP OR LEADERS
 Extrinsic motivation
 Practicality
 Resistance to change
 Rewards performance
 Discourage independent thinking

ADVANTAGES AND DISADVANTAGES OF
TRANSACTIONAL LEADERSHIP
 Advantages
a.) self motivated
b.) Productivity
c.) structure
d.) reproduced
o Disadvantages
a.) flexible working pattern
b.) limited creativity
c.) rigid
d.) Personal initiative

TRANSFORMATIONAL LEADERSHIP
 Leadership approach
 Valuable and positive change
 Increases motivation and performance of the followers
 Quiet leaders
 Proper decisions

CHARACTERISTICS OF TRANSFORMATIONAL
LEADERSHIP OR LEADERS
 Inspirational
 Mobilize
 Motivation
 Conflict resolution

ADVANTAGES AND DISADVANTAGES OF
TRANSFORMATIONAL LEADERSHIP
 Advantages
a.) communicating ideas
b.) good balancing
c.) mutual trust
d.) high emotional intelligence
o Disadvantages
a.) ineffective
b.) good structure to survive
c.) not fit in bureaucratic structure

IMPLEMENTATION OF TRANSACTIONAL
LEADERSHIP TO (DEPARTMENT A)
 Transactional leadership will be implemented in Human
resource department.
 Rewards and incentives
 Supervision
 Work group performance
 Planning

IMPLEMENTATION OF TRANSACTIONAL LEADERSHIP TO
(DEPARTMENT A)
 HR Business partners
a.) Helps to achieve strategy
 HR centers of Excellence
a.) Reward
b.) Talent
c.) Diversity
d.) employee relation
 HR operations
a.) recruitment
b.) HR systems

IMPLEMENTATION OF TRANSACTIONAL
LEADERSHIP TO (DEPARTMENT A)
 Transactional leadership
Focuses on creating
a.) Good work environment
b.) clarify the relation
Between performance and rewards
c.) Reward performance
d.) To achieve standards

IMPLEMENTATION OF TRANSFORMATIONAL
LEADERSHIP TO (DEPARTMENT B)
 Transformational leadership will be implemented in
Production department.
 Raise motivation of each other
 It is related to producing the goods into finished goods and
then adding value to the work.