Question

Is transactional leadership the same as management? Define both concepts, explain your perspective and provide an example to justify your answer.

Answer 1

Transactional leadership and Management are different concepts that can be explained below.

Transactional leadership

Transactional leadership is a type of leadership where a leader is trying to influence the actions of his or her followers through a system of rewards and punishments. He or She closely monitors the functioning of his or her followers to find for deviations if any from the standard set by him. It is a suitable method of leadership while dealing with an emergency situation.

Management

Management is concerned with the discharging of various functions for the attainment of organizational goals and objectives. Here a manager is trying to get results through the effective administration of organizational machinery.

My Perspective regarding  Transactional leadership and Management

In my perspective transactional leadership is not suitable for a business concern as it is solely based on only two elements such as rewards and punishments. This concept may be suitable in addressing an urgent problem and is not suitable for day to day running of an organization. In fact, all the organizations may not move only on the basis of rewards and punishments. Transactional leadership is very much reactive compared to management that is generally a proactive concept. In the case of management, an organization is moving as per the policies, objectives, etc. but as per Transactional leadership, an organization is moving as per the rewards or punishments. Management encourages followers to gives first priority to the interest of the organization whereas Transactional leadership encourages followers to give priority to the self-interest of individual followers.

Example.

In military and armed forces, the top leaders may exhibit Transactional leadership but it may not be suitable for normal business organizations where normal management style would be suitable.