Transformational vs. Transactional Leadership: Which Is Right for Your Team?

Transformational and transactional leadership are two prominent leadership styles that have gained attention in management and organizational psychology. Transformational leadership focuses on inspiring and motivating followers, while transactional leadership uses rewards and punishments to achieve performance outcomes. Transformational leaders possess charisma, have a clear vision, communicate inspirationally, empower their team, build supportive relationships, emphasize personal growth, and are willing to take risks.