Final answer:
Transformational leadership is about inspiring followers to exceed expectations through charisma, inspiration, intellectual stimulation, and consideration, while transactional leadership focuses on supervision and organizational goals through rewards and punishments. These styles may vary based on context and situation, and leaders often exhibit elements of both. Studies suggest transformational leadership tends to be more effective.
Step-by-step explanation:
Transformational and transactional leadership are two prominent styles discussed in management and leadership studies. According to Bass and colleagues (1996), transactional leadership emphasizes supervision, organizational goals, rewards, and punishments. Transactional leaders tend to focus on maintaining the status quo and act as managers who oversee the execution of tasks.
On the other hand, transformational leadership is more about inspiring and motivating followers to exceed expectations. Bass et al. describe transformational leaders as possessing four key attributes: they are charismatic role models, inspirational in their optimism about goal attainment, intellectually stimulating by encouraging critical thinking, and individually considerate of their followers' needs. Eagly et al. (2003) found transformational leadership to be generally more effective than transactional, though many leaders exhibit elements of both.
Leaders may adopt different styles depending on the context, such as in the classroom, workplace, or sports teams. When reflecting on one's personal leadership approach, it is beneficial to consider how different styles may be more effective in different settings. Whether a leader is more transformational or transactional can vary depending on personal preferences, follower expectations, and situational demands.