During a planning meeting, two leaders from different departments faced the same challenge:
- motivate your team to achieve an ambitious goal.
The first leader, John, took the transactional route. He established clear tasks, set strict deadlines and promised financial incentives for those who achieved their goals. The team followed the instructions, but creativity was limited, and only the minimum required was achieved.
Marta, the other leader, chose a transformational approach. He brought the team together, shared an inspiring vision and listened to suggestions. It encouraged each member to explore their potential and aligned organizational goals with individual values. In the end, not only was the target surpassed, but the team felt pride and purpose in what they had achieved.
These approaches reflect two distinct leadership styles. But why does transformational leadership stand out as the only one truly capable of motivating teams?
Transactional Leadership: Management Focused on Rules and Results
Transactional leadership is based on exchange; on transaction: the leader sets objectives, employees carry out tasks, and performance is rewarded or corrected. This style is effective in contexts where clear processes and discipline are required. However, by focusing only on short-term goals and fulfilling tasks, transactional leadership tends to ignore creativity, innovation and the personal growth of employees.
Transformational Leadership: Inspiring to Achieve More
Transformational leadership, on the other hand, focuses on inspiring and motivating the team.
This style promotes:
- Shared Vision: Transformational leaders align the goals of the organization with the values and ambitions of the team.
- Personal Development: They value individual potential, encouraging growth and learning.
- Innovation: They create an environment that encourages new ideas and creative solutions.
- Intrinsic Motivation: Employees feel valued and part of something bigger, which raises performance beyond expectations.
Why is Transformational Leadership Essential for Motivation?
Today, as flexibility and creativity are more important than ever, transformational leadership stands out. This style builds trust, fosters a collaborative environment and allows employees to see the real impact of their work.
When a leader transforms, or rather drives, a culture of commitment and trust, motivation becomes intrinsic. It’s not just about rewards, but about purpose. Teams motivated by transformational leaders feel empowered to face challenges and achieve extraordinary results.
Although transactional leadership can be considered in some sectors of activity, particularly in some industrial activities, it is transformational leadership that shapes resilient, innovative and aligned teams. In a world that is constantly evolving, leaders who inspire and motivate can transform not only their teams, but also their organizations.
As a leader, ask yourself: are you managing or inspiring? The difference can determine the long-term success of your team.
