Leadership & Management

1. Leadership & Management Discussion for Lesson 9: Transactional and Transformational Leadership

2. Lesson 1Reading Objectives • The student will comprehend the characteristics of transactional leadership. • The student will comprehend the characteristics of transformational leadership. • The student will comprehend the primary differences between transformational and transactional leadership. • The student will comprehend the impacts that transformational leadership can have on a unit.

3. Lesson 9Discussion Objectives • The student will comprehend the primary differences between transformational and transactional leadership. • The student will comprehend the impacts that transformational leadership can have on a unit.

4. Characteristics of Transactional Leadership • Occurs when leader and follower are in an exchange-based relationship • Goal is to meet other party’s needs • Relationship between leader and follower tends to be transitory • Effective only as long as relationship is of mutual benefit

5. Characteristics of Transactional Leadership (Cont.) • Contingent Reward - Contracts exchange of rewards for effort - Promises rewards for good performance - Recognizes accomplishments

6. Characteristics of Transactional Leadership (Cont.) • Active: Management by Exception - Searches for deviations from standards - Takes corrective action • Passive: Management by Exception - Abdicates responsibility & avoids making decisions (Laissez-Faire) - Intervenes only if standards not met

7. Characteristics of Transformational Leadership • Strong Transformational Leaders perform exceptionally well in crisis • Have a vision of what a new organization can be • Strong bonds cultivated between leader and subordinates • Followers willingly subordinate themselves • Strong emotional bonds develop over time

8. Characteristics of Transformational Leadership (Cont.) • Charisma - Provides vision and sense of mission - Instills pride - Earns respect and trust • Inspiration - Communicates high expectations - Uses symbols to focus effort - Expresses important purposes in simple ways

9. Characteristics of Transformational Leadership • Intellectual Stimulation - Promotes intelligence and rationality - Values innovative problem-solving • Consideration for the Individual - Gives personal attention - Coaches - Advises

10. Transformational Leader Builds & instills vision based on organizational values. Enjoys good relationship with subordinates Leader contributes more Employees exert greater efforts for leader Leaders and followers raise one another to higher level of motivation and morality Transactional Leader Leadership act does not bind leader and followers in mutual and continuing pursuit of a higher purpose Primary Differences between Transformational & Transactional Leadership

11. Primary Differences between Transformational & Transactional Leadership

12. Image Recruiting Selection Promotion Transfer Development Training Approaches to training Leadership education Job design and assignment Organizational structure Impacts of Transformational Leadership on Unit

13. Next Class • Foundations of Control • Read: Leadership and Management, Chapter 10

14. Summary • Primary differences between transformational and transactional leadership • Impacts transformational leadership can have on a unit

15. Questions? ???