Post by rabia994 on Mar 9, 2024 5:47:12 GMT
Styles of so-called business leadership. Among the new types, transactional leadership stands out. Below we tell you in detail the definition, advantages and disadvantages of this alternative to traditional leadership. What is transactional leadership? Transactional leadership is a team management strategy based on improving results through the implementation of incentives for workers. These incentives can be positive, such as financial rewards, or negative, such as sanctions. Its purpose is to reward those who have achieved their objectives and to call attention to those who do not have the desired level of productivity. This style aims to provide greater autonomy to collaborators, and for the leader to supervise the results, once the activities have been completed. Where did this concept arise? Transactional leadership has always been present in work environments, however it was not until when James MacGregor Burns spoke about the characteristics of transformational leadership and transactional leadership. Differences between transactional and transformational leadership Transactional leader The transactional leader has a more passive role when it comes to the daily management of teams and is concerned with fostering an interest in self-improvement in their employees.
It can be easily perceived in structures with well-established and even routine processes, where there is a risk of falling into conformism and a lack of interest in making efforts to improve their performance. Among the main characteristics of the transactional leader are rationality, equanimity and the ability to delegate and motivate his team, as well as his focus on results. Transformational leadership While transformational leadership is proactive, it aims to encourage change, innovation, creativity and cha America Cell Phone Number List nge the way in which employees perform their tasks based on the company's values and criteria. This leadership style occurs when leaders and collaborators agree to work together and move forward together. In this, the role of the leader is to influence, guide and direct members so that, voluntarily, they achieve business objectives. Advantages of transactional leadership Well-implemented transactional leadership can mean various benefits for companies, such as: • Improved results Once employees adapt to the criteria and way of working of the transactional leader, their performance improves and so do their results in the medium and long term. The incentive system causes the most competitive and ambitious employees, in the best sense of these concepts, to be motivated to improve their remuneration or working conditions.
Benefits motivation Knowing the goals and the rewards derived from their fulfillment (or non-compliance) is a great way to keep employees interested, involved and motivated. • Increases management effectiveness The transactional leader points towards efficient, pragmatic management that provides greater independence to the collaborator, allowing them to dedicate more time to other tasks of greater impact and value for the company. Disadvantages of transactional leadership When the application of this leadership style is not correct, it can omit personal and human contact with collaborators, in addition to other disadvantages that have been associated with it, such as: • Excess pressure While incentives can be a powerful stimulus, they can also mean stress and excessive pressure. Poor implementation of this, in regards to setting realistic goals, can lead to anxiety, depression, or even have physical effects. • Impersonal treatment Being focused on results does not have to mean leaving aside human relationships and the interest that the leader may have with respect to the personal well-being of his collaborators.
It can be easily perceived in structures with well-established and even routine processes, where there is a risk of falling into conformism and a lack of interest in making efforts to improve their performance. Among the main characteristics of the transactional leader are rationality, equanimity and the ability to delegate and motivate his team, as well as his focus on results. Transformational leadership While transformational leadership is proactive, it aims to encourage change, innovation, creativity and cha America Cell Phone Number List nge the way in which employees perform their tasks based on the company's values and criteria. This leadership style occurs when leaders and collaborators agree to work together and move forward together. In this, the role of the leader is to influence, guide and direct members so that, voluntarily, they achieve business objectives. Advantages of transactional leadership Well-implemented transactional leadership can mean various benefits for companies, such as: • Improved results Once employees adapt to the criteria and way of working of the transactional leader, their performance improves and so do their results in the medium and long term. The incentive system causes the most competitive and ambitious employees, in the best sense of these concepts, to be motivated to improve their remuneration or working conditions.
Benefits motivation Knowing the goals and the rewards derived from their fulfillment (or non-compliance) is a great way to keep employees interested, involved and motivated. • Increases management effectiveness The transactional leader points towards efficient, pragmatic management that provides greater independence to the collaborator, allowing them to dedicate more time to other tasks of greater impact and value for the company. Disadvantages of transactional leadership When the application of this leadership style is not correct, it can omit personal and human contact with collaborators, in addition to other disadvantages that have been associated with it, such as: • Excess pressure While incentives can be a powerful stimulus, they can also mean stress and excessive pressure. Poor implementation of this, in regards to setting realistic goals, can lead to anxiety, depression, or even have physical effects. • Impersonal treatment Being focused on results does not have to mean leaving aside human relationships and the interest that the leader may have with respect to the personal well-being of his collaborators.