When it comes to leadership, transactional leaders are typically laid back and easy going. They motivate their followers in the direction of established goals by clarifying role and task requirements, and providing a reward for a job well done. You do this correctly and on time for me, and I will reward you in some way. They are effective and get the job done, but don’t foster change or inspiration.
Transformational leaders inspire followers to transcend their own self-interests and are capable of having a profound and extraordinary effect others. They are charismatic, foster creativity, and build consensus amongst the group. They build a “can-do” attitude in others and produce levels of effort beyond that of transactional leadership.
I have experienced both of these leadership styles first-hand. At my last job we had a series of GM’s over the course of 5 years. Four different GM’s to be exact. Two in particular stand out for examples of each of these types of leadership. I will use fake names for the sake of privacy. You never know who may be trolling around your blog! đ
Joe was one of our last GM’s before the company shut down. He was a nice guy with a lot of executive level experience and a long list of qualifications. Joe would come in in the morning and go straight to his office. I would run into him in the break room or he might pop into my office if he needed me to do something for him. Despite this he was approachable, pretty easy going, and had no trouble getting a job accomplished. However, he was not a real team player. If any department was overwhelmed with work or needed help meeting a shipping deadline, he would not assist. When I worked trade shows with him, he would never help set up or tear down the booth, even if I was the only other person there. Although, he might take me to dinner after. If the team met their sales goals, he would compliment us on a job well done and buy the office lunch on the company dollar.In my opinion he was a transactional leader. Nothing special but effective and easy to work with.
Larry was our GM about a year prior to Joe. Larry was very energetic, personable, and had a great sense of humor. Everyday when he would get to the office, Larry would go around to everyone’s office to see how to say good morning and see how we were doing. At around 10:30 we would have a company “coffee break” in the break room where he would go over goals for the week and anything that was coming up. If the team was getting backed up with work, Larry himself would jump in and help out. No job was ever beneath him and he constantly preached a team effort. At times when sales were down, he would have brainstorming sessions with us to come up with a strategy to turn things around. Sometimes the strategies worked and sometimes they didn’t but he would always support and appreciate our efforts. He implemented a weekly “Friday Fun day” policy where we would barbecue every Friday for lunch. He felt this was beneficial for team building and give us a chance the review the good and bad in the week that had just passed. Needless to say, we loved Larry. I believe he was a transformational leader. He didn’t need to get on us to do things or take initiative on tasks because we felt we were all a team and we wanted to please him. We had our best numbers overall when Larry was our GM. He was not afraid to get his hands dirty with us and always boosted our morale.
From these experiences I know I want to be a transformational leader. Not just because it can bring good results, but because I know my followers will feel good about working for me. Joe could’ve been transformational if he just cared a bit more and took time to be one of the team. Being transactional is just being the boss where being transformational is really being a leader.