Effective Leadership Styles and Business Funding Models
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Leadership: Transformational vs. Transactional
Transformational leadership is a style that inspires and motivates employees to innovate and drive change. In contrast, transactional leadership is a style based on a system of rewards and punishments to achieve specific goals.
Behavioral Differences in Leadership
Regarding behavior, transformational leaders typically act as visionaries and mentors who foster creativity and personal growth among their team. On the other hand, transactional leaders behave more like supervisors; they focus on giving clear instructions, monitoring performance closely, and ensuring routine tasks are completed correctly.
Pros and Cons of Leadership Approaches
- Transformational Approach:
- Advantage: Creates high employee engagement