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8.2.1 Transactional Leadership

Transactional leadership focuses on the relationship between the leader and their staff or direct reports (i.e. subordinates in a direct reporting relationship). The approach places an emphasis on the leader:

The transactional approach makes a strong link between leadership and the ability to motivate goal attainment and improved performance through reward structures. An emphasis is therefore placed on interpersonal communication and contingent reinforcement (Bass, 1985). This approach has at its foundations path-goal theory and the expectancy theory of motivation, and the importance of the leader emphasising the path to the goal and the rewards gained for successful effort (House, 1971; & Bass, 1985:127).

As we will uncover in later study previous theories are often able to inform and be integrated into subsequent theories. It is also interesting how theories can be used to usefully categorise leadership activities. The following reading provides an excellent example of just one such case. The reading introduces the concept of servant leadership. This theoretical approach has often been aligned with approaches such as stewardship and transactional leadership. In the following reading however servant leadership is compared to transformational leadership. Now it is important to signal many professionals and academics are strong advocates of some theories and would dogmatically deny any overlap with other theories. Some would even consider a leadership theory only valid while it remains distinct and the most comprehensive approach to studying leadership.

Reading 8.2

© 2003, Regent University , By permission.
Stone, AG, Russell, RF & Patterson, K (October 2003), 'Transformational versus Servant Leadership - A Difference in Leader Focus', Transformational versus Servant Leadership- 1, Servant Leadership Roundtable, 15 pages. Sourced June 2004 at http://www.regent.edu/acad/cls/2003ServantLeadershipRoundtable/Stone.pdf

Activity 2

Complete the above reading and answer the following.

  1. Is it at all useful to consider servant leadership as a distinct theory if it overlaps with transformational leadership?
  2. If the servant leader's focus is on the followers, is it more aligned with transactional leadership than transformational leadership?
  3. Do leaders care which theory most comprehensively explains their tasks and activities? Given your response does it matter if more than one theory is used to explain leadership tasks and activities?
  4. Some would argue servant leadership is a sub-set of the wider debate between transactional and transformational leadership approaches, would you agree?

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