Transformational leaders will use inspiration and excitement to drive behaviors

1. Transformational leaders will use inspiration and excitement to drive behaviors. This is in contrast to the transactional leader who uses rewards and punishment to mover their efforts in the direction they might want. The transformational leader will use their abilities and attributes to garner acceptance to their plan and will get people to follow their lead. 
Charismatic leaders inspire their people through their passion. They have the unique ability to create a vision and put a plan in place for people to get behind and implement. This type of leader relies upon referent power in which their employees see them as someone they may want to emulate. 
2.An effective leader is a good listener, reader of people, motivator, and a moral compass for their followers. An effective leader can use different leadership styles when the situation warrants, and can be trusted to make decisions based on the good of the group or company, which may conflict with different group members or affect group dynamics.