WHAT ARE THE PRINCIPAL DISTINCTION BETWEEN TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP.
Every Leader has a style that is adopted based on prevailing situation and their end focus in mind. However, it is pertinent to give some basic highlights on the various differences that are inherent in their various approach. For leadership concept to be complete and fully adopted there must always be a corresponding Followership.
Burns define Leadership as, “ leaders inducing followers to act for certain goals that represent the values and the motivations-the wants and needs, the aspirations and expectations-of both leaders and followers.”
Leadership is all about influencing the followers to achieve a desired goal. Over the years there have been ‘generation’ theories which are Trait theory, Behavioural Theory, Contingency theories and Transformational.
The 1st question that comes to mind is what Transactional Leadership is.
Transactional Leader: approaches followers with an eye to exchanging one thing for another … Burns pursues a cost benefit, economic exchange to met subordinates current material and psychic needs in return for “contracted” services rendered by the subordinate …. Bass
Transactional Leadership is a style of leadership that uses the bases of conditions between a leader and follower. In essence, it is a form of conditional relationship in every facet of life, superiors’ sets target to the subordinates and expects the subordinate to perform and be rewarded.
In an Organization, the manager leads his subordinate according to organizational culture and policy available at his disposal, and the outcome tends towards promoting and punishing accordingly

Transformational Leader:
“recognizes and exploits an existing need or demand of a potential follower… (and) looks for potential motives in followers, seeks to satisfy higher needs, and engages the full