Comparative Study of Transactional and Servant Leadership

Transactional Leadership

Servant Leadership

Leadership of the status quo. Instrumental in maintaining order and stability in an organization

Leadership of change. May work well under difficult times

Focuses on social and economic exchanges using reward and steps to reinforce positive environment

Focuses on organizational objectives and organizational change by spreading new set of values

Leader-follower relationship is based on mutual satisfaction through transaction

Leader-follower relationship is based on the underlying principles of change

Motivation provided through tangible items of self-interest (money, rank)

Motivation provided by intangible items of self-interest (values)

Based on directive power acts

Based on interaction and influence

Follower response is based on compliance

Follower response is based on commitment

Leader and follower may not have a common goal pursue in strict sense

Leader and follower both are supposed to raise each other to higher levels of motivation and morality

Founded on immediate need of meeting the conditions of living

Founded on people’s quest for the meaning of life

Focuses on situational authority and values appropriate to establish that

Focuses on the power of human values and aims to instill that in everyone

Based on daily affairs, tangible outcome

Based on long-term process, intangible outcome

Leader-follower relationship may take off quickly on the basis of ability

Leader-follower relationship might take time to take off due to the difference of understanding

Professional relationship and mostly transitory

Relationship based on the alignment of values and tends to last long

Tactical issues get priority

Missionary approach is preferred

Involves existing system

Stresses on redesigning

Supports proven structures and systems

Aligns structures and systems with values

Follower mentoring based on tangible evaluation

Follower mentoring based on value orientation

Works at micro level

Wants to extend to macro level