Transformational and Transactional Leadership

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In other words a contingency model is a near approximation of an otherwise intractable continuum which lacks definable contours and a logical conceptual framework of reference. (Antonakis, Cianciolo and Sternberg, 2004).While theoretical constructs underlying the two leadership styles have been presented as a comparative analysis there is very little attention being focused on the qualitative paradigm shift caused by the a priori and a posteriori catalytic changes. Thus the comparative/contrast study is essentially based on these outcomes and the latest calibrations and/or benchmarks enunciated by researchers to establish a conceptual framework for analysis.
According to Burns (1978) and Bass (1985) transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives and human resources. Similarly they identify a set of category constructs in the transactional leadership also. …
Business organizations operate in their respective environments as determined by organizational structure, culture, leadership, strategic competitive environment and a host of other internal and external influences such as the regulatory framework, PESTEL and SWOT environments. (Gill, 2006). Given the degree of influence under these circumstances, each organization adopts its own leadership style with a view to achieving these organizational goals such as profits, market share growth, higher share prices, quality improvements, brand loyalty, sustainability, benchmarks and so on. These organizational goals can be divided into short term goals and long term goals.
Transformational leadership is primarily and immediately concerned with winning the support of those subordinates to achieve predefined organizational goals. (Jones, 2003) While many such objectives are not realized in the short run due to a variety of reasons such as inadequate planning and wrong forecasts about cash flow, sales revenue and profits, there can be some recovery in the long term. Transformational leader seeks with fervent hope to inculcate a sense of responsibility and pride in achievements among the subordinates while on the other hand transactional leader seeks to inculcate a sense of reciprocity among his subordinates based on realizing mutually beneficial goals such as productivity, performance and target outputs. In return the transaction leader rewards the subordinate with pay, recognition and praise. A critical theoretical perspective that has been developed on this particular aspect looks at the transformational leader’s attitude towards hisher subordinates as power-sharing partners whose contribution to the productive process is rewarded with