Transformational versus transactional
The latest attempts to define and explain leadership in this new turbulent environment we work in, have included the terms 'transactional' and 'transformational' leadership. Basically transactional leadership is just a new term for describing old style management, and transformational is describing new-style leader/manager.
The following table is adapted from Steven Covey (1992) and explains the differences between the two:
| Transformational | Transactional |
|---|---|
| Aligns internal structures and systems to reinforce overarching values and goals. | Follows and fulfils role expectations by striving to work effectively within current systems. |
| Separates causes and symptoms and works at prevention and is concerned with treatment. | Builds on need to get the job done and make a living. |
| Focuses more on missions and strategies for achieving them. | Relies on human relations to oil human interactions. |
| Makes full use of available resources (human). | Supports structures and systems that reinforce the bottom line. |
| Oriented towards long-term goals without compromising human values and principles. | Swamped in daily affairs. |
| Transcends daily affairs. | Oriented to short-term goals and hard data. |
| Designs and re-designs jobs to make them meaningful and challenging, realises human potential. | Pre-occupied with power and position, politics and perks. |
| Builds on the need for meaning. | Confuses causes and symptoms. |
| Pre-occupied with purposes, values, morals and ethics. | Focuses on tactical issues. |
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- The University of the Highlands and Islands, Scotland
- The University of Alcalá, Spain
- Digital Connections, Scotland
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