Final answer:
The concept of exchange is central to transactional leadership, not transformational leadership, which aims to inspire and motivate followers beyond an exchange of rewards for performance.
Step-by-step explanation:
The concept of exchange is not central to transformational leadership. Instead, transformational leadership focuses on leaders who are charismatic, inspirational, intellectually stimulating, and considerate. These leaders aim to transform their followers by increasing their awareness of task importance and value, getting them to focus on group and organizational goals rather than their own interests, and activating their higher-order needs. Unlike transactional leadership, which is based on an exchange process between leaders and followers involving rewards and punishments, transformational leadership seeks to inspire and motivate followers to achieve extraordinary outcomes and, in the process, develop their own leadership capacity.