Organizational performance and expansion are greatly influenced by leadership, and competent management requires an awareness of the many leadership philosophies and implications. The effectiveness of organizations is examined in this study along with the link between transactional and transformational leadership styles. The purpose of transactional leadership is to preserve the status quo while using rewards and penalties to accomplish organizational objectives. This leadership style prioritizes performance, efficiency, and conformity to established procedures. It is mostly concerned with the exchange of rewards and performance objectives. The goal of transformational leadership, on the other hand, is to inspire and encourage followers to put aside their own interests and strive towards a common goal. Transformational leaders are endearing, support innovation and creativity, and cultivate a culture of loyalty and trust among their subordinates. Their goal is to establish a culture inside the company that fosters both professional and personal development. The study discovered that organizational change preparedness was predicted by transformational leadership behavior. Moreover, better productivity, morale, and teamwork may be achieved in organizations by combining transactional and transformational leadership styles.