Transactional vs. Transformational (Part 2): Leadership in practice

Timo Gerhardt, Monday 11 July 2022 | Reading time: 5 min.

In the first article on transactional and transformational leadership, we looked at the special features of the two leadership styles and showed how they differ. In the second part, we explain the practical relevance of the two styles. Find out in which situations the transactional leadership style makes more sense and where a transformational approach will get you to your goal faster. First, let’s revisit what basically distinguishes the two styles:

Transactional leadership Transformational leadership
Performance-oriented reward Focus on intrinsic reward
Leadership through active control Passive leadership through vision & mission
Leadership by exception Intervening by constantly questioning the status quo
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Transactional vs. Transformational (Part 1): Leadership styles in comparison

Timo Gerhardt, Monday 11 July 2022 | Reading time: 4 min.

Over time, different styles of team leadership have emerged.  A few years ago, transactional leadership was the unchallenged standard in almost all companies. Now, a transformational style seems to be catching up and winning followers. However, this does not necessarily mean that this type of leadership is categorically superior. Find out what defines both styles, how they differ, and which one is right for you in the following article. 

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