Framework

Transformational versus transactional leadership

The question it answers

When taking over a team that needs to change, should a department head inspire people towards a new vision or hold them to clear targets and rewards?

Origin
Burns, 1978; Bass, 1985; Judge & Piccolo, 2004
Diagram type
Comparison table
Level of analysis
Individual
Chess knight on a glass compass, icon for strategy and leadership

Diagram

Transformational versus transactional leadership

CriterionTransformationalTransactional
MechanismInspires; shifts values and expectationsExchange: reward results, correct deviations
Strongest whenDirection must changeDirection is agreed and execution matters
Main riskPersonal dependence; weak controlRigidity; little innovation
Pooled evidenceStrong correlation with effectiveness (Judge and Piccolo, 2004)Contingent reward shows a comparable correlation

Pitfalls

Pitfall

Reading them as mutually exclusive. Many studies show they complement each other.

Sources

References

Listed A–Z by author surname, Harvard style. A source with a DOI links to https://doi.org/…; one without links to its page or says plainly that it has no DOI.

  1. Bass, B.M. (1985) Leadership and performance beyond expectations. New York: Free Press.No DOIsearch.worldcat.orgSource page
  2. Burns, J.M. (1978) Leadership. New York: Harper & Row.No DOIsearch.worldcat.orgSource page
  3. Judge, T.A. and Piccolo, R.F. (2004) ‘Transformational and transactional leadership: a meta-analytic test of their relative validity’, Journal of Applied Psychology, 89(5), pp. 755–768.doi:10.1037/0021-9010.89.5.755Source page