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6.5 Differences between transactional leadership and transformational leadership
| Transactional leadership | Transformational Leadership |
| Leadership is responsive | Leadership is proactive |
| Works within the organizational culture | Work to change the organizational culture by implementing new ideas |
| Transactional leaders make employees achieve organizational objectives through rewards and punishment | Transformational leaders motivate and empower employees to achieve company’s objectives by appealing to higher ideals and moral values |
| Motivates followers by appealing to their own self interest | Motivates followers by encouraging them to transcend their own interests for those of the group or unit |