Transformational leadership and transactional leadership are popular research fields today. Compared with transactional leadership, transformational leadership is considered to be a more effective management style by academia. However, no one leadership style is applicable to all fields, and the effectiveness of these two leadership styles is still affected by specific situations. Then, based on contingency theory, this paper analyzes transformational leadership and transactional leadership, and believes that different leadership styles need to be adopted for different situations. Finally, from the perspective of practice, it comes to the conclusion that government should effectively integrate and use the two leadership styles in daily management in order to achieve high-performance management.