The New Leadership Model
Transactional Leadership

Transactional leadership is generally found in the middle management level.

They are generally are more directive and they tell their subordinates what exactly is to be done. They are generally task-oriented people.

They practice this concept the academics call management-by-exception, where they set work objectives and standards but wait for problems to arise before reacting to them.

Also, they reward their followers according to their performance and motivating them through these rewards, a concept called contingent reward.

Generally these leaders garner more compliance from their followers; people would do as they’re told because they have to, not because they want to.

They generally say things like:

• “Do this well and you will get a bigger bonus this year.”
• “Perform this task for him by tomorrow or you’re fired.”

They are not the type of leaders that would gather a group of wild and passionate people to do something together, so generally you don’t find this leadership style at the top of volunteer organizations, like church leadership or in social service organizations.

If Your Leadership Style is Transactional...

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you could learn to change your style and learn how you can inspire people and get them to follow you through passion and not because they have to.

Ultimately great leaders of the world were not the transactional style; they inspired vision and people followed them out of their commitment to them and the vision they carry.

However, it is sometimes important to have them around because they are more predictable and would be ideal in middle management where things have to be done accordingly and by-the book.

Therefore it is ideal to have a visionary leader or a transfomational leader at the helm of an organization, while having several managers with the transactional style managing the employees at the lower levels of the organization.

The New
Leadership Model

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» Transactional leadership
Transactional Leaders practice what you would call management-by-exception and contingent reward. They set performance standards and do performance reviews for their followers.

» Transformational leadership
Transformational leaders have the ability to inspire and motivate their followers beyond their job description. They seek to bring change in their environment or community by improving on the current situation, whatever it may be. They tend to anticipate problems before they come and act accordingly.

» Charismatic leadership
Charismatic leaders have a natural ability to attract people and inspire commitment to their cause.

» Visionary leadership
Visionary leaders have the ability to see what things could be in the future, rather than what things are. Through the attractive visions that they give, they are able to draw followers to themselves.

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