Thursday 20 December 2018

Transformational and transactional leadership


Theory of Leadership.

One of the theories that emphasize a change and the most comprehensive with regards to leadership is the theory of transactional. The idea of transformational and transactional leadership style was developing which apply it in the context of politics. This idea was further refined and introduced into the organizational context.

Suggests that transformational and transactional leadership styles can be divided firmly and both conflicting leadership style. Transformational and transactional leadership is very important and it takes each organization.

The concept of transformational and transactional leadership with based on Maslow's opinion regarding the hierarchy of human needs. These linkages can be understood with the idea that lower employee needs, such as physiological and safety needs can only be met through the practice of transactional leadership style.


That the higher needs, such as self-esteem and self-actualization, can only be met through the practice of transformational leadership style. Suggests that it can be measured in relation to the influence of these leaders face to employees. Therefore, there are three ways a transformational leaders motivate their employees, namely by:

  • Encourage employees to be more aware of the significance of business results;

  • The encourage employees to give precedence to the interests of the Group; and

  • Increases the higher the employee's needs like self-esteem and self-actualization.

The relationship between perceptions of Transformational leadership style 38 relating to transformational leadership, the existence of four leadership characteristics transformational, i.e.:

The relationship with employees the transactional leader reflected from three things:

    1. Leaders know what the desired employees and explain what they would get when they work in accordance with the expectations;

    2. The Leaders Exchange efforts undertaken by employees with rewards; and

  • A leaders responsive to the personal interests of employees during the importance comparable to the value of the work that has been done.

That the characteristics of transactional leadership is composed of two aspects, namely, in return for a contingent, and exception management. With regard to the influence of transformational leadership style against the behavior of employees.

Transformational leadership style

That transformational leadership style was the deciding factor that influence the attitudes, perceptions, and behaviors of employees where an increase in trust in leaders, motivation, job satisfaction and being able to reduce the number of the conflicts that frequently occur in an organization.

Transactions leadership style

The Transactional leadership is a leadership style in which a leader focusing on interpersonal transaction between a leader with employee relationships involving exchanges. The Exchange is based on the agreement on the classification of targets, standards work, assignment work, and awards. Confirmed that leadership style is one of the determinants of job satisfaction.

Reveals that the discharge of employees more caused by dissatisfaction against work conditions because employees feel the leadership not to give credence to its employees, there is no involvement employees in decision making, the leader applies not objective and dishonest employees.

Which suggests that the primary reason employees leave the organization because leaders failed to understand the employees and leaders are not paying attention to the needs of employees. In relation to cooperative in his research shows that the obstacles hindering the development of cooperatives in Indonesia is the limitation of a skilled workforce and a high turnover.


Basically, the leadership is the ability of the leader to influence employees within an organization. So that they are motivate to achieve the goals of the organization. In providing the assessment of the leadership style that is apply to leaders. Employees perform cognitive processes to receive, organize, and provide interpretation against the leader.

A variety of research conducted related to job satisfaction, especially in conjunction with the transformational and transactional leadership styles. Show that there is a significant relationship between transformational and transactional leadership with job satisfaction. Research conducted by Popper suggests that the influence of transformational leadership to organizations is huge.

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