Transactional VS Transformational

Another addition to the collection of leadership theories is the juxtaposition of Transactional and Transformational leadership. Comparing these two different notions in relation to the leadership spectrum of leadership which focuses on the actions that leaders take into the work environment when executing work-related tasks and goals.

Transactional leaderships are more tasks and results driven. They focus on the capabilities of associates based on existing boundaries. What they can or cannot do is determined by existing procedures and policies. They are excellent at crafting performance evaluations such that they know what they are looking for. Two work qualities of high value and importance for transactional leaders is efficiency and effectiveness of associates. Transactional leaders are most effective in work environments that require strict deadlines, constrained resources, and maintaining gorup dynamics. They are oftentimes compared to leaders who lead by "carrot and stick", such that "you do this and you get this".

An example of this in the hospitality industry can be largely seen in lower entry level positions. At a front desk job I previously held for example, the leaders were transactional such that we had specifc numbers to hit ( X amount of loyalty program enrollments, X amount of revenue generated from upsells, X amount of phone numbers taken, etc.). For however many amount of which ever task needed to be completed, front desk associates were rewarded (either with a small bonus or gift). This style of leadership is required for front desk associates because it is a very task driven role. There are a lot of operational tasks in the responsibilities of a front desk agent, and to motivate associates to get these tasks completed, small incentives and rewards are provided to those who exceed expectations. This leadership is common in lower entry level positions likely because many associates who work lower entry level positions may only be holding that position as a temporary source of income, or are set with the mindset "i'm only doing this for some money" and will not be there for the long term..

Transformational leaders are very future conscious. They focus on the "big picture" of the company and seek reformation and evolution. They are engaging and enthusiastic with their employees. They emphasize the value and importance of vision and values. They pride themselves in leading by example and are adorned with the quality of inspiring other associates. They are also keen on building and maintaing strong relationships.

An example of this in the hospitality industry can be largely seen in higher entry level positions, perhaps on the levels of executive management. To inspire other managers and associates alike is oftentimes the role of Directors and higher managers. These tend to be more long-term positions that reqire that strong relationships be built and maintained. Directors and higher-up managers must focus on the 'big picture' of the company, not just focusing on the present numbers, but the numbers and images of the future. This is more specifically seen with the efforts of a General Manager I was acquaintaned with, who strived to transform the image of a specific hotel and sought to evolve the hotel with various improvements.