DESCRIPTION OF INTERACTIVE
Transactional vs Transformational Leaders
This exploratory activity permits you to drag each of the nine comments over the two "Leadership" areas to check if you understand these two leadership styles. Comments will appear at the top of the screen.
Based on your definition and thoughts, and also those of your classmates, think about what a Transactional leader might be like, and what a Transformational leader might be like. Drag the following statements over the location where you believe they fit. These are examples of statements that might be heard in a typical workplace.
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Statement |
Transactional Leadership |
Transformational Leadership |
Correct |
Incorrect |
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“That speech by our CEO really inspired me to work harder.” |
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X |
Correct! Transformational leaders inspire their staff. |
Woops. This is an example of transformational leadership. A transformational leader inspires their staff. |
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“We need to get 20 more vehicles manufactured by the end of day to meet our quota.” |
X |
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Correct! A transactional leader focuses on group performance and outcomes. |
Woops. This is an example of transactional leadership. A transactional leader focuses on group performance and outcomes. |
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“We will start paying double the hourly wage for any overtime hours worked.” |
X |
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Correct! A transactional leader is concerned about day-to-day operations and performance based incentives. |
Woops. This is an example of transactional leadership. A transactional leader is concerned about day-to-day operations and performance based incentives. |
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“In the next 5 years our company will be the market leader in mobile technology, but we can’t do it without the hard work and dedication of our entire workforce.” |
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X |
Correct! This is definitely an example of transformational leadership. A transformational leader engages by sharing long term visions and goals. |
Woops. This is actually an example of transformational leadership. A transformational leader engages by sharing long term visions and goals. |
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“Thank you to all of our staff for giving back to the community. In the last year we collectively donated 5,500 hours of our time to local charities!” |
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X |
Correct! This is typically an example of transformational leadership. A transformational leader truly inspires and attempts to enhance the lives of workers. |
Woops. This is an example of transformational leadership. A transformational leader truly inspires and attempts to enhance the lives of workers. |
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“I am willing to mentor any new employees and take them under my wing.” |
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X |
Correct! This is an example of the attitude of a transformational leader. Transformational leaders work hard to engage staff and help them be the best they can possibly be. |
Woops. This is an example of the attitude of a transformational leader. Transformational leaders work hard to engage staff and help them be the best they can possibly be. |
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“The first salesperson to sell a vehicle today gets an extra $100 commission.” |
X |
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Correct! This is a statement that might be said by a transactional leader. A transactional leader is more concerned about the day-to-day progress of an organization, and often motivates with extrinsic rewards. |
Woops. This is a statement that might be said by a transactional leader. A transactional leader is more concerned about the day-to-day progress of an organization, and often motivates with extrinsic rewards. |
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“I just love coming to work everyday because I truly believe in this company, and the direction we are headed.” |
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X |
Correct! An employee with this type of attitude is likely working under a transformational leader. A transformational leader will inspire and motivate through intrinsic reward mechanisms. |
Woops. An employee with this type of attitude is likely working under a transformational leader. A transformational leader will inspire and motivate through intrinsic reward mechanisms. |
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The Principal inspired all students to take part in “Day of Pink” to promote anti-bullying. As a result, students felt safe and cared for. |
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x |
Correct! Principals lead change in a school by modelling best behaviour and letting students know they are cared for. When students feel safe in school, they tend to perform better. |
Not quite. When people are inspired to make a change based on the greater good, this is transformational. |
Can you think of any current business leaders who might be more of a transformational leader - a leader that inspires, engages, and truly motivates all of the businesses stakeholders?
In the image below, the Harvard Business Review ranked the top 10 transformational leaders (CEO’s - Chief Executive Officers) based on the success of the companies they lead.
Transformational LeadersWhat do many of these companies have in common? Think about the products and services that these companies provide to consumers. In these types of industries, why is it really important that companies be led by transformational leaders?
Response to these questions being sure to include your thoughts on the risks to companies in similar industries if they lack transformational leaders. Identify any of these companies, if you can.
Leadership involves making things happen and ensuring that people do the things that need to be accomplished. As a result, leaders generally hold some element of power over others. Leadership power is really the ability of a leader to get someone else to do something. Leaders gain power from two areas - the position they hold, and the personal qualities they possess:
Position PowerThis type of power is based on a leader's position in an organization, and their ability to influence action through rewards or punishment. Some examples of Position Power in the workplace: “If you work 2 extra hours today, I’ll buy your dinner.” “If you don’t stay late today, I’ll cut your hours back next week.” “I’m your boss; I’m telling you that you must stay late today.” “Tell your family you’ll be late tonight, we have a lot of work to do here.”
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Personal PowerThis type of power is really based on how a leader is viewed by others, and their ability to influence action through their positive relationship with others. Some examples of Personal Power in the workplace: “I will follow her directions because she really knows what she is talking about.” “I am going to do what my boss asks of me because I really like her, and I want our relationship to continue to be a positive one.” “I am going to do what she has asked because it is really for the good of the organization and the entire team.” “I really appreciate the recognition I’ve been getting from my boss in the last few weeks, so I will continue to put in extra hours to get the job done.” |
A relatively new theory of leadership is one that places an emphasis on service to others, rather than self interest.
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The servant-leader is servant first… It begins with the natural feeling that one wants to serve, to serve first.
~ Robert K. Greenleaf
The term “servant leadership” was coined by Robert Greenleaf in the 1970s. His theory is that people aspire to lead based on a human nature element of helping others - serving. A leader who is more of a servant will focus on the growth and well-being of others, rather than through the exercise of power - whether that be position or personal power.
The following video will explain more:
Nine Key Attributes of Servant LeadershipMake a list of the nine key attributes of servant leadership. In your own words, briefly explain each.
Attempt to identify a leader that demonstrates service leadership qualities.
What is it about them, or about how they lead that gives them these servant leadership qualities?
Earlier in the course, you learned about motivation, and heard some insights into why people are motivated by author Dan Pink. You were also introduced to his book Drive: The surprising truth about what motivates us.
Dan Pink is also a believer in, and promoter of servant leadership. Listen in as he discusses elements of servant leadership as related to servant selling.
To learn more about Robert Greenleaf and servant leadership, check out:
Leaders are also often identified as having a high concern for tasks, having a high concern for people, or some sort of combination of the two. A concern for tasks revolves around making sure the job gets done - tasks are assigned and completed, plans are followed, directions are set. A concern for people revolves around making sure all staff are supported, the workplace is a social one, and personal needs are met and feelings respected.
Robert Blake and Jane Mouton created a grid system called, The Blake and Mouton Managerial Grid, that is often used to identify types of leaders. It places a leader on a vertical and horizontal grid style graph based on their concern for tasks and their concern for people. It effectively identifies five different categories of leaders.
DESCRIPTION OF INTERACTIVE
A pdf of the activity is available here.