Theories in Organization and Leadership in
Education (ELPS 721)
Commonalities and Differences of Transformational
and Transactional Leadership Theories: In the
Ethiopian School Context
Author:
Meseret Ayenew (PhD candidate at WCU)
Instructor: Dereje Demisse (PhD, Associate Professor)
Contents
 Contents
 Abstract
 Introduction
 Objective
 Methodology
 Transformational
Leadership Theories
 Transactional
Leadership Theories
 Commonalities and Differences
of Transformational and
Transactional Theory
 In school context: When do
school Principals exercise these
two approaches?
 Which one do you propose to
educational managers and why?
 References
Introduction
• Leadership is a trait that affects followers’ behaviour so as
to achieve the pre-stated objectives of an organization.
• There are various leadership theories that are advocated
by different management scholars by considering traits,
behaviour, charisma, nature, etc.
• Transformational and Transactional Leadership theories
are of the theories of leadership that are mostly used
since 1980s.
• This paper designed to discuss about transformational
and transactional leadership theories as well as their
differences and commonalities
3
Objective
The main aim of this paper is to discuss about the
commonalities and differences of transformational
and transactional leadership theories; and to give
some clues in a school context.
Methodology
• This paper was organized using reviewing the literature on secondary
sources to give certain information about Transformational and transactional
leadership as well as the commonalities and differences; and also their
applications in Ethiopian school contexts.
• Therefore, the study employed a qualitative method to review relevant
documents like books, journals, and other online sources
• Document analysis method was used to analyze and interpret data.
• Document analysis is a systematic method that is employed either to review
or evaluate printed documents as well as electronic documents from sources
such as computer-based and Internet-disseminated resources.
• In qualitative research, the document analysis method also includes analysis
and interpretation of data with the aim of producing meaningful
information, to gaining advanced empirical knowledge, and understanding
(Bowen, 2009).
5
Transformational leadership theories
‘‘Transformational leadership can be learned, and it can and
should be the subject of management training and development.
Research has shown that leaders at all levels can be trained to be
charismatic . . .” BERNARD M. BASS.
 Transformational leadership is a leadership approach that
causes transformation in persons and public systems
 It also boosts the inspiration, performance and confidence of
followers through a number of mechanisms.
Transformational leadership theories
• In first place James V. Downton introduced Transformational
leadership approach in 1973.
• It is also expanded by Macgregor Burns in 1978
• In 1985 Bernard M.Bass modified it by adding some features in it.
• The Concept of Transformational leadership theory which was introduced
in 1978 by James MacGregor Burns.
• James MacGregor Burns was a political scientist, presidential biographer,
and American historian as well as an expert on leadership.
• His descriptive research on political leaders is now used in organizational
psychology.
• Burns established the concept of ‘Transactional leadership’ and
‘Transforming
leadership’
later
on
changed
to
Transformational Leadership
(https://www.langston.edu/sites/default/files/basic-content-files/TransformationalLeadership.pdf).
7
Transformational leadership theories
According to James MacGregor Burns’ (1978)
• The concept of transformational leadership is not described as a series of definite
behaviours but rather a process by which leaders and follower’s promote one
another to advanced levels of motivation and morality (Tafvelin, 2013).
• A transformational leader is an individual who motivates, encourages
and transforms followers to accomplish extraordinary outcomes.
• Transformational leaders give attention to the growing needs and
concerns of individual followers.
• They change followers’ understanding of problems by helping them to
give attention to old problems in a new way
• They are able to provoke, motivate and encourage followers to exert
additional efforts to attain group goals in a wonderful way (James and
Ogbonna, 2013).
8
Transformational leadership theories
According to Bass (1990)
The aim of transformational leaders is to authorize and inspire
their followers to ‘do more than they are initially expected to
do’.
They motivate followers to accomplish jobs at advanced levels,
to utilize more efforts, and to do more dedicated (Brahim, et al,
2015).
Transformational Leadership approach is the current and the
most popular researched leadership approach starting from
early 1980s (Northouse, 2016).
9
Transformational leadership theories
• Transformational Leadership
components these are:
Theory
has
four
core
• Idealized Influence,
• Individual Consideration,
• Intellectual Stimulation, and
• Inspirational Motivation.
• Idealized Influence and Individual Consideration can be
cognizant by getting in mentoring techniques in which the
leader give emphases to the individual’s development.
10
Transformational leadership theories
 Inspirational Motivation: enriched by learning how signs are
operated, used in the organization using Attribution Theory to
increase the overall understanding of how individuals perceive,
control over achievements and failures.
 Intellectual Stimulation: learned by creativity research to inspire
individuals to think about the atypical aspects, difficulties and
perceptions (Atkinson and Pilgreen, 2011).
11
Transactional leadership theories
• Transactional Leadership is a kind of managerial leadership which
focuses on the role of organization, group performance, and supervision.
• It is a leadership style in which the leader encourages compliance of his
followers using both punishment and reward (James and Ogbonna,
2013).
• It is basically grounded on the exchange of rewards dependent on
performance and mainly focuses on leader-follower relationships.
• Transactional leadership theory is broadly used in educational organizations,
• It is normally used in the relationship between teachers and students.
• Students are required to complete assignments, tests, or project works their
award; marks or ability to pass is depend on their performance (Khan, 2017).
12
Transactional leadership theories
• According to Burns (1978), transactional leaders recognize the
expectation of their followers
• Reply to them by creating a close connection between
strength and reward.
• The leader has the power to evaluate, give correction, and give
training to followers
• To improve their performance and to give rewards for their
effectiveness; when the expected outcomes are attained (Brahim,
et al, 2015).
13
Transactional leadership theories
 Transactional leaders are not paying attention to changing the
future,
 They pay attention to simply performing things the same
and in the same way.
 Leaders who use the transactional approach pay attention to
the work of followers' to find deviations and mistakes.
 Transactional leadership is effective in emergency situations,
when projects needed to be performed in a specific fashion,
and in the case of crisis (James and Ogbonna, 2013).
Commonalities and
Differences of
Transformational and
Transactional Leadership
Theories
15
Commonalities of Transformational and
Transactional Leadership Theories
• Transformational and Transactional leadership theories are leadership
theories which are implemented since 1980s both have many similarities
in common.
• Both Transformational and Transactional leadership are the latest
development theories of leadership
• Both focuses on the connections between leaders and Employees
(Xiaoxia, Xiaoxia, and Jing, 2006).
• Both have the aims to achieve results in different methods.
• Both leadership approaches comprise leaders and followers with shared
objectives to get advantages from each other;
• both styles have intrinsic goals in mind and are motivational in their
tactics.
16
Commonalities of …
• Both are affected by environmental factors such as risk and
stability;
• Affected by organizational factors such as human capital,
performance, time orientation, and risk craving (Baškarada, et al,
2017).
• Both are intended to answer the question of how to manage
groups of followers and use critically developed and tested
psychological methods.
• Nowadays both are outstanding and effective leadership styles
• Bothe can return positive impacts on groups of followers if
properly implemented.
17
Differences between Transformational and
Transactional Leadership Theories
• Transformational and transactional leadership styles have opposite poles
according to the fundamental theories of motivation and management;
• Transformational leaders pay attention to the change within the
organization, while transactional leaders focus on the role of
organization, supervision, and group performance.
• Transformational Leadership has characteristics like putting others’ needs
before his/her own, challenging the status quo, inspiring his/her team,
and being a role model.
• Transformational leadership is the process of influencing main changes
based on the assumptions and attitudes of members of an organization
• Build commitment for the main changes based on the strategy and
objectives of the organization.
18
Differences between Transformational and
Transactional Leadership Theories
• Transformational leadership goes beyond a day–to-day activity such as
reward or punishment-based approaches.
• However, the transactional leadership produces growing changes in a way
individuals behave
• Like reward or punishment depending on the capability of individual’s
(Xiaoxia, Xiaoxia, and Jing, 2006).
• As distinguished by Burns transactional and transformational leaders;
• Transactional leaders believe in transaction; due to this case they provide
rewards in exchange for individuals’ devotion.
19
Differences between Transformational and
Transactional Leadership Theories
• Transformational leaders are strongly connected with followers,
they discuss about organizations’ goals and thoughts.
• They raise the consciousness of followers about the importance of
specific outcomes and identify alternative methods to accomplish
outcomes.
• Transformational leaders express enthusiastic behaviours
including contributing a sense of mission,
• while Transactional leaders show a tendency to be more inactive
(Sultana, Darun, and Yao, 2015).
20
Table 1: Differences between Transactional & Transformational Leadership styles






Transactional Leadership
Leadership is reactive
Always Works within organizational
structure without deviation.
Upholds the status-quo
Reward or punishment systems are
ways to achieve objectives of the
organizations.
Leaders do not free to communicate
about
organizations
plans
with
employees.
Motivates staffs to give priority to their
own self-interest.







Transformational Leadership
Leadership is proactive
Continually
looking
improvement
of
organizational structure with innovative ideas,
Leaders work to transform the organization’s
traditions by employing new ideas
Encourages new ideas in solving problems
Objectives are attained through motivation to
better for the good of the followers
Leaders are always ready to discuss with
employees about organization’s plans before
implementation
Encourages employees to give priority to
group interests
21
Table 1: Differences between…
Transactional Leadership
Transformational Leadership
 Management-by-exception,
Employees
perform
goals
enforce correct actions to through higher ethics and
improve performance.
principles
 Stable working Environment
Turbulent working Environment
 Leadership style is Bureaucratic
Leadership style Charismatic
 The number of leaders in the
The number of leaders in the




group is only one
 It is focused on Planning and
Execution

group is more than one
It is focused on Innovation
22
Differences between…
• To sum up, transformational leaders give emphasis on the
organization as a whole,
• Although Transactional leaders mostly depend on structure and
guidelines to manage followers.
• Transactional leadership is frequently chosen in several middle
management positions
• For instance at service giving corporations or at manufacturing
companies which highly preferred due to necessity of structure in
particular place of work.
• Instead, Transformational leadership is appropriate in industries
where creativeness and innovative thoughts are necessary.
23
In a school context, when do the school principals
exercise these two approaches?
• Educational organizations are complex institutions that have several, even
challenging inner and outer factors that must be considered during leading
and making decisions.
• Therefore, Educational institutions need to choose a leadership strategy by
considering the difficult nature of leadership and individuals current status
and complexity of the organization (Khan, 2017).
• A research conducted by Alemu and Getnet (2017), on the Influence of
Leadership Styles on Employees’ Job Satisfaction come up with results:
• The job satisfaction of academic staffs is affected by the leadership styles of
leaders.
• Where the instructors prefer a leader who exercises a transformational
leadership style to that of transactional; or passive/avoidant leadership
styles.
24
In a school context, when do the school…
• The reason is that transformational leaders maximize the independence of
academic staff.
• In addition to this, Senior academic managers obviously identify
transformational leaders in their organizations
• Because these leaders will help them in training and mentoring future
leaders,
• They are in a position to provide training opportunities and professional
development for transformational leadership for the current and future
academic leaders.
• According to Anemaw (2018), a study conducted in Amhara Region in
Gozamn Woreda shows that:
• The principals of Secondary schools mostly practice transactional leadership
styles.
25
In a school context, when do the school…
• As a result, the work performance of the Teachers in the schools was
moderate.
• The performance of teachers’ of school; principals who practice
transformational leadership styles were found to be better than that of
principals who use transactional or laissez-faire leadership styles.
• A study done on the relationship between leadership styles and Teachers’
motivation in government high schools of Addis Ababa City was
come up with a result
• The school principals mostly exercise Transactional leadership style,
• while, transformational leadership styles were practiced moderately, and
also the school principals were not practiced laissez-faire leadership
styles.
26
In a school context, when do the school…
• On the other hand, the School principals were from non-leadership
academic staffs
• They should undertake professional and refreshment courses on
management and school leadership to manage and lead teachers in a
scientific and organized manner (Asrat, 2018).
• In educational organizations Transactional leadership style is mostly
used in the relationship between teachers and students.
• Students are expected to complete assignments, tests, or project works to
get awarded or to receive marks (Khan, 2017).
• Studies conducted by different scholars indicates that
transformational and transactional leadership styles are
implemented interchangeably depending on situation and on
their school environments.
27
Which one do you propose to educational managers
and why?
• Depending on researches done by different intellectuals there is a
never ending debate with the idea,
• Some scholars’ put transactional leadership as the best leadership
style; although others think that transformational leadership is a
better leadership style.
• Based on the debate on both transactional and transformational
leadership styles
• My assumption is, that there is no best-standardized
leadership style that is applicable to all situations.
28
Which one do you propose to educational managers and why?
• ‘‘In real life, the most practical advice for leaders is not to treat
pawns like pawns, nor princes like princes, but all persons like
persons.’’ James MacGregor Burns.
• If leaders apply this idea in their organizations; it helps to attain the organizations
goals without any hesitation.
• In an organization there are different Peoples with different job descriptions but
all have similar pre-stated visions and objectives related to the organization.
• In order to attain the objectives in educational organizations; it is important to
build a team spirit in side followers without discrimination.
• Using either transformational or transactional leadership style by itself is not
enough to achieve one’s organization’s goals,
• It is important to motivate, mobilize, and dedicate each and every individual in
the organization using both transactional and transformational leadership styles.
29
Which one do you propose to educational managers and why?
• Therefore, any kind of leader may demonstrate with
varying degrees both transactional and transformational
leadership styles at a time.
• Transactional and transformational leadership styles are
not equally exclusive so, nearly a combination of the two
leadership styles advances the effectiveness of the
leadership.
• Both leadership styles have their own qualities and ways of
motivating and mobilizing their followers to attain the
intended goals of the organizations.
30
Conclusion
• Leadership is a trait that affects followers’ behaviour in order to achieve
the pre-stated objectives of an organization.
• There are various leadership theories that are introduced by different
management scholars,
• From these theories Transformational and Transactional Leadership
theories are the theories of leadership that are mostly used since the
1980s.
• Thus transformational leadership is a leadership approach that causes
transformation in persons and public systems.
31
Conclusion
• Whereas Transactional leadership is basically grounded on the exchange of
rewards depending on performance and mainly focuses on leader-follower
relationships.
• Transformational leaders motivate followers to accomplish at advanced
levels, to utilize more efforts, and to do more dedicated.
• The Transactional leaders recognize the expectation of their followers and
reply to them by creating a close connection between strength and
reward.
• Transformational and transactional leadership styles both are
outstanding and effective leadership styles, which can return
positive impacts on groups of followers if properly
implemented.
32
33