How Do Transactional and Transformational Leadership Impact Employee Motivation?

Learn how transactional and transformational leadership affect employee motivation, and how Becky’s values help create a motivated team.

January 02, 2025

Post by Wilma Ivanisevic

Leadership styles play a big role in motivating employees and driving success. Two key styles are transactional and transformational leadership. Transactional leadership uses rewards and punishments to manage employees. On the other hand, transformational leadership encourages growth, creativity, and teamwork. In this blog, we will explain how both styles impact motivation. Also, we will focus on how transformational leadership helps create a motivated team at Becky.

Understanding Transactional Leadership

Transactional leadership means giving employees clear tasks and expectations. These leaders set rewards or penalties based on performance. Rewards can be bonuses, and penalties may be warnings or demotions. This method motivates employees by using a system of consequences to ensure tasks are completed.

Transactional leadership can bring quick results and keep things organized. However, it mainly focuses on short-term goals, not long-term growth. So, employees may work just to avoid penalties or earn rewards. This approach doesn’t encourage creativity, innovation, or personal development.

That is why employees may feel disconnected from the organization’s larger goals. They might lose motivation if their work only meets external expectations. Transactional leadership works well in environments with strict rules, like retail or manufacturing. However, it is less effective for building a motivated and committed team.

The Power of Transformational Leadership

Transformational leadership motivates employees by creating a supportive environment. These leaders focus on trust and teamwork. They also emphasize a shared vision. This helps employees feel valued. When employees have a clear purpose, they are more motivated. Transformational leaders lead by example and build strong relationships with their teams. They encourage personal growth and development.

At Becky, the transformational leadership style is guided by core values that help create a positive work culture. These values include:

Kindness:Leaders show care and understanding.
Respect:Every team member is treated with dignity.
Collegiality:Teamwork and collaboration are encouraged.
Concern:Leaders genuinely care about employees' well-being.
Availability:Leaders are open and accessible to their teams.
Positive attitude:Optimism and encouragement are a constant presence.

Transformational leaders build trust, which increases motivation and job satisfaction. So, employees work not just for rewards, but to support the organization’s goals. This creates long-term commitment, creativity, and personal growth. That is why employees feel encouraged to contribute their best ideas. They are motivated to perform at their highest level.

The Impact of Becky Values on Employee Motivation

In this section, we will see how our values affect employee motivation. We believe that kindness, respect, collegiality, concern, availability, and a positive attitude help create a motivated team. These values guide how we work with our employees and shape the workplace.

Kindness encourages employees to work together. When we show kindness, it makes collaboration easier. This helps build stronger teams. Respect also plays a big role. We notice that mutual respect improves communication. Employees feel more comfortable sharing ideas and solving problems together.

Collegiality means working together as equals. This value helps build trust among our employees. Consequently, they are more motivated to reach shared goals. Concern is another key value. We care about the well-being of our employees. This positively affects their engagement.

Availability is also important. We make sure we are always ready to help our team. This shows employees they can count on us, which increases their motivation. Finally, a positive attitude helps keep morale high. When we stay positive, it creates an environment where everyone feels energized and focused.

These values build a strong, motivated team. They boost morale, increase productivity, and improve job satisfaction. Our values create a workplace where employees feel supported and motivated to do their best.

Leadership styles are important for motivating employees. Both transactional and transformational leadership matter, but transformational leadership is especially powerful when combined with Becky values. At Becky, we focus on motivating our team by using values like kindness, respect, teamwork, concern, availability, and a positive attitude. These values help employees do their best work and create a happy, successful workplace. In this article, we explained how transformational leadership boosts motivation and success. Contact Becky today to learn how these values can help your team!