Transactional leadership is a traditional approach that focuses on rewards and punishments to motivate employees, while transformational leadership inspires and empowers employees to drive organizational change. Transactional leadership is task-oriented and has a short-term focus, while transformational leadership is future-oriented and fosters creativity and innovation. Transactional leadership is effective in maintaining stability and achieving short-term goals, while transformational leadership is instrumental in driving long-term change and nurturing employee growth. Successful leaders may blend elements of both styles depending on the situation.
