Transactional and Transformational Leadership
Both concepts of the theory are built upon the reciprocity relationship between leader and follower. In contrast to the transactional leader who practices depending reinforcement of followers, the transformational leader inspires, intellectually stimulates, and individually considerate their team (Bass, 1999). At the core of transformational approach it is emphasize the both on leader ability to motivate and empower follower as well as in the moral dimension of leadership – it is about winning the mind and the heart (Bolden et al., 2011, p.31). The commitment building of this type of leadership is not only from the precise goal setting and evaluation but also through caring and inspiring the team.
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It is explained, also from the earlier research in this tradition (initially termed ‘vertical dyad linkage” theory), that the concept result in relative two forms of a relationship of high and low (Bolden, 2011, p.30). The LMX theory considers the extent of relationship might exist between leaders with each of the followers which contrast with situational leadership that treated followers as homogenous. The quality of mutual exchange relationship in this approach are varied from one subordinate to the other (Yukl, O’Donnell & Taber, 2009). First, the high-exchange is described as high level of trust, liking and respect as well as high expectation of each other exchange. Second, the low-exchange expectation only poses in formal requirement of the job and no extra benefits provided by the leader. However, exchange relationship gradually can be developed based on the reinforced behavior of the leader and subordinates.
Some study findings exposes that transformational leadership has positive association with the dimensions of LMX as well as innovativeness. In contrast, transactional leadership has negative association with innovativeness (Lee, 2008). The stronger positive relationship between LMX and creative work involvement was placed when employees experienced better job autonomy (Volmer, Spurk & Niessen, 2012). In the other hand, the creativity induce insufficient when employees experience many constraints in their jobs. This finding supported by a study about creativity process within