Transactional Leadership
                                              Vs
                              Transformational Leadership

Transactional leadership involves a transaction: between work and reward.
The underlying belief behind transactional leadership is that people are motivated by rewards, so the social structure functions best when there is a clear set of guidelines.
The subordinates will be given a task to be done by the leader and the latter will also clearly specify what to expect on its successful completion. So performance is used to transact with rewards.

Trasnsformation Leaders on the other hand instill a competence in a group or individual that they attain such functions like visioning,modelling ,synergising and business boundaries which would not be possible without the motivation of the transformation leader.The characteristics of transformation leadership are:

• Empowerment
• Risk taking 
• Clarity of mission
• Team Building 
• Equanimity
• Envision Trust

Burn's theory of transformational leadership states that in this type of leadership the followers and leaders inspire each other towards higher levels of motivation and morality.

The transformational leaders will set an example first by setting himself as a standard to his followers as to what level of motivation they should build up to.