The issues involving the normal, routine work-related transactions such as assigning subjects to teach, evaluating students’ and teachers’ performance, making decisions etc. are incorporated in transactional leadership.
However, occasionally an education manager has initiate and manage major change such as developing a new course, creating a work group, bringing innovations into the curriculum, defining the institution’s culture or starting a new branch of the school/college with another medium of instruction.
Such issues entail transformational leadership. Only a leader with tremendous influence can hope to perform these function is effectively.
In order to establish the best fit possible between the micro and macro-environments of the educational system, the transformational leader must be prepared to evolve long-term strategic plans, to read the changing nature of external and internal situations and to manage institutional culture to align it with action plans.
Transformational leadership incorporates energizing personnel to make a united response to a higher level of goals common to all those associated with the teaching-learning process (Hanson et al, 1991).