UNIT 12 - Transformational Leadership

Question 1

Transactional Leadership

Answer 1

• Emphasizes structure and short-term goals
• Relies on formal power
• Aims to control behavior
• Associated with managers

Question 2

Transformational Leadership

Answer 2

• Emphasizes vision and long-term change
• Relies on personal power and inspiration
• Aims to transform followers’ values and goals
• Associated with true leaders

Question 3

Why This Matters

Answer 3

• Transactional and transformational leadership are not mutually exclusive.
• Both can be present in the same leader, depending on the context.
• Understanding both approaches helps leaders choose the most effective strategy for different situations.

These two models frame the way power and influence are exercised in leadership—one through reinforcement, the other through inspiration.

Question 4

Transactional Leadership
Definition

Answer 4

A leadership approach focused on supervision, organization, and performance.

Based on clear structure, defined expectations, and exchange-based relationships.

Leaders clarify what is expected and provide rewards or punishments based on performance.

Question 5

Transactional Leadership Characteristics

Answer 5

• Goals and rewards are clearly defined.
• Emphasis on efficiency, control, and task completion.
• Reinforces compliance and minimizes deviation from standards.
• Rooted in formal authority and position-based power.

Question 6

Transformational Leadership
Definition

Answer 6

• A leadership approach focused on inspiring and motivating followers to achieve extraordinary outcomes.
• Goes beyond managing tasks—aims to transform values, beliefs, and goals.
• Relies on personal power, not just formal authority.

Question 7

Transformational Leadership Characteristics

Answer 7

• Develops and communicates a compelling vision.
• Encourages innovation, risk-taking, and long-term development.
• Treats followers as individuals and fosters personal growth.
  Builds emotional connections and trust.

Question 8

Key Characteristics of Transactional Leadership Styles (Based on Bass, 1990)

Answer 8

1. Contingent Reward

• Leader provides rewards in exchange for performance.
• Reinforces clear goals and expectations.

2. Management by Exception (Active)
   - Leader actively monitors for errors and intervenes when necessary.
   - Ensures compliance through correction.
3. Management by Exception (Passive)
   - Leader intervenes only when standards are not met or problems arise.
   - More reactive than proactive.
4. Laissez-Faire
   - Absence of leadership.
   - Avoids decision-making and accountability.

Question 9

Key Characteristics of Transformational Leadership Styles (Based on Bass, 1990)

Answer 9

1. Idealized Influence
   - Leader acts as a role model.
   - Gains trust and respect through ethical and visionary behavior.
2. Inspirational Motivation
   - Leader communicates an inspiring vision.
   - Builds enthusiasm, optimism, and commitment.
3. Intellectual Stimulation
   - Encourages creativity and critical thinking.
   - Challenges assumptions and encourages innovation.
4. Individualized Consideration
   - Pays attention to individual needs.
   - Supports personal development and coaching.