Transactional vs. Transformational Leadership: Communication and Stakeholder Engagement

Introduction

Transactional and transformational leadership are two distinct forms of leadership, each aimed at different objectives and producing various results. According to Potter and Starke (2022), these two leadership methods can be differentiated by how they try to achieve their general outcomes. This paper, therefore, delves into the different leadership approaches and reflects on the impact of communication and how a leader should develop communication with different stakeholders.

Comparison

Transactional leadership is a more traditional and conservative approach that solely focuses on maintaining the status quo and attaining specific goals through rewards and punishment. Here, clear rules and guidelines are established by superiors, who then reward their followers based on their overall performance. On the other hand, transformational leadership is more modern and unconventional; leaders try to inspire their subordinates to bring out the best in them. They establish a sense of purpose and vision that empowers their followers to aspire towards a higher objective.

Communication

The way transformational and transactional leaders communicate with their stakeholders also varies in several ways. Transformational leaders are always more open and transparent than transactional leaders. They are active listeners, communicate vision and values, and can adjust to various forms of communication to suit a specific audience and ensure that their message is well heard and understood.

Transactional leaders, on the other hand, are more direct and focused (Kim, 2021). This is because they are more concerned with ensuring that their tasks are done promptly and to their satisfaction. They approach communication by clarifying expectations and being controlling. Primarily, they utilize the top-down approach to convey information and are less likely to take in stakeholder input.

Conclusion

A leader’s capacity to communicate with their followers and accomplish their goals depends on their awareness and responsiveness to the requirements of their audience. The inability to do so can have detrimental consequences for both the leader and the organization. For instance, it can result in misinterpretation and misinformation, leading to poor team performance. Consequently, it can lead to limited team growth and reduced creativity and innovation. This is because all these aspects require different communication approaches to enable effective team performance.

References

Kim, C. M. (2021). Introduction to leadership and communication. Leveraging Technology in Leadership Communication, 4(2), 1-20. Web.

Potter, D., & Starke, J. (2022). Transactional and transformational leadership. Building a Culture of Conscious Leadership, 3(2), 39-48. Web.

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StudyCorgi. (2025) 'Transactional vs. Transformational Leadership: Communication and Stakeholder Engagement'. 22 September.

1. StudyCorgi. "Transactional vs. Transformational Leadership: Communication and Stakeholder Engagement." September 22, 2025. https://studycorgi.com/transactional-vs-transformational-leadership-communication-and-stakeholder-engagement/.


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StudyCorgi. "Transactional vs. Transformational Leadership: Communication and Stakeholder Engagement." September 22, 2025. https://studycorgi.com/transactional-vs-transformational-leadership-communication-and-stakeholder-engagement/.

References

StudyCorgi. 2025. "Transactional vs. Transformational Leadership: Communication and Stakeholder Engagement." September 22, 2025. https://studycorgi.com/transactional-vs-transformational-leadership-communication-and-stakeholder-engagement/.

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