full-range leadership theory encompasses the so-called
transformational leadership style. The authors view transformational leadership as
an extension of and as superior to transactional leadership The
relationship between a transactional leader and his employee is characterized by
actions chosen to serve their own interests. Contingent rewards are one way by which
the transactional leader may guide his employee’s behavior. The transactional leader
utilizes rewards in order to foster desired work behavior and indicate which steps need
to be taken to, for example, receive a pay rise. The other dimension descriptive of
transactional leadership is that of active management-by-exception; the leader will
interfere when the employee’s actions fall short of the organization’s standard (Bass,
1999). Transformational leadership goes above and beyond transactional leadership in
that rather than merely focusing on the exchange relationship between leader and
follower, an organization’s values and vision are communicated and employees’
intrinsic motivation to work hard is called upon