TRANSACTIONAL LEADERSHIP transactional leaderAn individual in a leadership capacity who emphasizes the exchange relationship between the worker

and the leader and who applies the principle that a good job should be rewarded. Sometimes a leader is simply the person in charge. That is, as a leader she sees herself as responsible for running operations but not changing things. A transactional leader is an individual who emphasizes the exchange relationship between the worker and the leader (Bass, 1985), applying the principle You do a good job and I will reward you. Like a Theory X manager, a transactional leader believes that people are motivated by the rewards (or punishment) they receive for their work, and such a leader gives clear and structured directions to followers. The transactional leader works within the goals of the existing organizational system (that's how we do it around here) and may exhibit management by exceptionstepping in only when a problem arises. TRANSFORMATIONAL LEADERSHIP transformational leaderAn individual in a leadership capacity who is concerned not with enforcing the rules but with changing them. While a transactional leader primarily concentrates on keeping the ship sailing, a different type of leader focuses on defining the direction of the ship. An individual with this leadership style dedicates thought to the meaning of leadership itself and to the impact she might have in improving an organization. Such a transformational leader is concerned not with enforcing the rules but with changing them. The transformational leader is a dynamic individual who brings charisma, passion, and, perhaps most importantly, vision to the position (Mumford, Scott, & Hunter, 2006). Four elements of transformational leadership have been described (Sivanathan & others, 2004). First, transformational leaders exert what has been referred to as idealized influence. This means that transformational leaders act as they do because they believe it is the right thing to do. Google's leaders, for instance, have a motto, Don't be evil! that has guided them in creatively implementing their idea of what a great place to work ought to be. This commitment to integrity instills trust in followers. Second, transformational leaders motivate by inspiring others to do their very best (Harms & Crede, 2010). Niro Sivanathan and his colleagues stress that transformational leaders need not have natural charm or charisma but rather a talent for bolstering employees' self-efficacy (Nielsen & Munir, 2009)their can-do attitudeand for convincing others to do their best. Third, transformational leaders are devoted to intellectually stimulating their employees. They make it clear that they need input from employees because they themselves do not have all the answers. Fourth, transformational leaders provide individualized consideration to their employees, showing a sincere concern for each person's well-being (Harms & Crede, 2010; Simola, Barling, & Turner, 2010). Transformational leaders can help people do more than they believed possible. In one study, elite UK Royal Marine recruits were more likely to make it through the challenges of boot camp if they had a transformational leader (Hardy & others, 2010). organizational identityEmployees' feelings of oneness with the organization and its goals.