| 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 |