The Use of Transformational and Transactional Leadership in Guiding the Followers - Research Paper Example

Introduction Leadership is the process of providing direction, influence and guidance to individuals or groups in order to accomplish goals. The essence of leadership is the effect that a leader has on the perception and behavior of subordinates and the culture that develops as a result of the impact. Managers wishing to become better leaders need to understand their impact on the subordinates as well as the personal characteristics and qualities that contribute to the impact. Gaining knowledge on the impact guides managers on the context and purpose for the choices they will make while making changes in leadership activities, behaviors and styles (Brooks 2009, pp 124). 1 Literature Review of Key Theories of the Nature and Exercise of Leadership in Organizations 1 The trait theory The trait theory postulates that leaders are born rather than made. It emphasizes nature over nurture. Most research on trait theory is coalesced around the qualities of distinguished leaders compared to non-leaders or followers. Trait approach focuses on the type of people that become leaders, and this process provides organizations with information on the qualities to look for when selecting leaders for different positions of leadership (Conger 2006, pp. 12). 2 Style approach Style approach focuses on the behavior of leaders rather than personal traits of leaders. Style approach posits that since a leaders behavior can be changed, and; therefore, there is need to train leaders on the right leadership qualities. Stogdill et al worked on leadership style with a focus on consideration and initiating structure and define them two styles as follows: The consideration style is where leaders show concern for their subordinates so as to earn their trust and, as a result, improve response and promote camaraderie (Conger 2006, pp.14). Initiating structure is a style where leaders define closely and clearly their expectations of subordinates in accomplishment of designated schedules. Some researchers have suggested that a combination of both consideration and initiating structure was the best leadership style. Korman in his study observed that the two styles were plagued by inconsistent results. He suggested that the effectiveness of the two types of leadership behavior was situationally contingent; that is, what worked well in some situations failed in others (Gill 2011, pp. 63). 3 Contingency approach Proponents of the contingency approach emphasize on the situational factors when defining leadership. They tend to specify situational variables that moderate the effectiveness of different leadership approaches. The most prominent exemplar of the contingency approach is Fiedler’s Contingency Model of leadership effectiveness. At the heart of Fiedler’s Contingency Model is the Least Preferred Coworker (LPC) scale, which attempts to, determine the leadership qualities of the person completing it. If that particular person is relationship-oriented, he/she is primarily concerned with fostering good relationships with subordinates and is considerate. If the person is task motivated, he/she is preoccupied with task accomplishment (Goleman, Boyatzis and McKee 2002, pp. 249). Fiedler’s Model treats relationship and task-motivation as personality attributes. Fiedler in a research conducted in a variety of work and non-work settings found that the effectiveness of relationship and task-motivated leaders depended on how favorable the situation was to the leader. The concept of situational control has three components of; leader-member relations, task structure and position power (Goleman, Boyatzis and McKee 2002, pp. 214). Fiedler proposed that task-oriented leaders perform best in both high control and low control situations while relationship oriented leaders perform best in moderate control situations. From Fiedler’s work, it can be deduced that since a person’s personality is not easily changed it is necessary to change the work environment to fit the leader’s style rather than trying to change the leader. The LPC has been subject to a lot of debate by researchers especially those who are unconvinced by the link between a person’s LPC score and their approach to leadership (Huczynski and Buchanan 2007, pp. 236). The bone of contention is the conceptualization of situational control or favorableness. Of concern is the overemphasis of situational control and why the three components highlighted above were the only crucial elements in situational control. Fiedler later responded to these criticisms by including stress within the models purview. There have been questions about the models validity in the face of results that are inconsistent with the model. Researchers also had problems with the measurement of key variables making the model to lose popularity (Huczynski and Buchanan 2007, pp. 235). However, contingency theory still persists though the prominence of situational factors has abated. Other researchers have identified deficiencies in Fiedler’s Model. Bryman identified inconsistencies between findings and the guidelines of the model. He also disputed the preference of some situational factors over other factors. More researchers seemed to dispute the assertion that leader’s behaviors were situationally contingent. 4 New leadership approach The term new leadership is used to describe and categorize several approaches to leadership that exhibit similar themes with a few differences between them. These new approaches provided a way of conceptualizing and researching leadership. These theories define a leader as someone who determines organizational reality through a vision. The vision is a reflection of how the leader perceives organizational mission and values to support it. Therefore, new leadership depicts leaders as managers of meaning rather than the influence process of leaders (Kotter 1990, pp. 4). 2 Transactional Leadership versus Transformational Leadership Transactional leadership comprises of an exchange between the leader and the follower in which the leader offers rewards in the form of presents or money for accomplishing his/her wishes. Such leadership’s effectiveness is limited to the implicit contract between leaders and their followers. Transformational leadership involves raising the aspirations of followers such that the leaders and the followers’ aspirations are fused. Waterman in his book on leadership asserted that transformational leadership had influenced almost all the highly successful companies he had studied at some stage of their development. Kouzes observed that articulation of a vision was the central element of leadership which involved the transformation of followers and organizations in correspondence with the organizations vision (Kotter 1990, pp. 12). Most researchers assert that transformational leadership and developmental exchange are the components of leader behavior most strongly associated with desirable outcomes such as the performance of subordinates. However, some researchers criticize new leadership for focusing too much on top leaders. Keller in reporting the findings of a study on R&D groups indicated that transformational leadership was a stronger predictor of project quality for R&D projects. Researchers are in agreement with the fact that situational constraints may restrict transformational leaders’ room for maneuver. Most researchers agree with the assertion that transactional leadership is not sufficient for optimal organizational performance (Northouse 2010, pp. 9). An evaluation of the behavior of selected leaders in an organisation your choice, in relation to a range of models and theories: in particular, a critical assessment of how the leaders guide the behavior of individuals, groups and teams 1 Southwest Airlines’ Southwest Airlines is a low-cost domestic airline based in Dallas, Texas and specializes in leisure travelers on short-haul routes. Southwest Airlines provides 2300 flights per day and employs over 30 000 staff in its operations. The company’s management on the ground is under leadership of a vice president who is responsible for such functions as schedule planning, marketing customer relations, labour relations, and planning. Each vice president reports to one of the eight senior vice presidents. The senior vice presidents report to the two executive vice presidents. One of the executive vice presidents is responsible for customer operations while the other overlooks aircraft operations (Pardey 2007, pp. 46). The leadership culture at Southwest was initiated by its co-founder and former CEO, Herb Kelleher, whose behavior and personality enabled him to persuade and motivate subordinates to accomplish goals and the vision of the organisation. His leadership enabled southwest to be ranked as the airline with lowest attrition rates in the US airline industry (Pardey 2007, pp. 47). For a start, Southwest’s culture emphasizes small spans of supervision; each supervisor has 8 to 9 front-line workers compared to 30 or 40 in other airlines. The supervisor is able to adequately serve the few front-line employees assigned to him/her as he/she is not overburdened with too many people to serve. Southwest uses a horizontal model of management, which is based on functional teams, to diffuse blame. Each level has sufficient staffing to provide guidance, feedback and instructions (Rollinson 2005, pp. 125). Leadership at Southwest is practiced through collaborative relationships where the roles of leaders and the collaborators are interchangeable. Essentially, leadership at the company is based on commitment and not compliance. The guiding philosophy of this system of leadership is that leaders get people to want to do what they want people to do. This system allows employees to participate in finding the solution and, as such, they are able to lead the company through collaborative efforts (Rollinson 2005, pp. 137). Culture is the bond that holds organizations together; it encompasses expectations, beliefs, norms rituals, communication patterns, symbols and reward structures. The culture of Southwest is embodied in the “southwest spirit”. To sustain the company’s culture Southwest created the culture committee to convey the understanding of the history, spirit and culture of the company to new recruits and fellow employees. Kelleher further explains that the company constantly honors employee achievement and empathizes with them when they are sick (Rollinson 2005, pp. 149). The company emphasizes team work over individual effort, to this end; the company uses the concept of ‘team delay’ which is a less precise method of reporting the cause of delays aimed at diffusing blame and encouraging learning. The team delay concept points out problems between two or three employee groups working together. During team debriefing, all members of the crew meet to determine the cause of the delay and learn how to mitigate future delays (Bass and Bass 2008, pp. 7). The leaders at Southwest Airlines encourage subordinates to be innovative, understanding, caring, and to communicate. Southwest focuses on the three tenets of people, personal and personalities even in hiring staff. The company does not have a Human Resources Department; rather it has a People Leadership Development Department. This is because the company beliefs that an organisation is defined by the people who work in it (Bass and Bass 2008, pp. 14). Herb Kelleher, the chairman of the board and one of the company’s founders emphasizes that competitors of the airline have failed at coping it because even if they copy its culture they cannot copy its employees. The company believes that the best formula for success is through treating its employees with respect, give them latitude and give them the encouragement they need to improve their output. Therefore, southwest employs an aspect of emotional transaction in its leadership (Bass and Bass 2008, pp. 64). 3 The Myers-Briggs Type Indicator (MBTI) The company’s success in sustaining an employee base of over 30 000 while supporting individuality, innovation and creativity, can be attributed to employee education. Employee education takes place at the company’s University for People facility. At the facility, trainers known as facilitators build a foundation for a continuous learning process using two basic tools. One of the tools is used by the supervisory leadership class, which uses the Myers-Briggs Type Indicator (MBTI), to help supervisors understand the differences among co-workers (Bass and Bass 2008, pp. 68). The Myers-Briggs test is a personality test designed to inform people about their psychological preferences. Myers-Briggs is a hybrid of Fiedler’s Model and Carl Jung’s theory of human personality as understood and used in everyday life. The MBTI is a tool used to create a conducive atmosphere for understanding and better communication. The system uses a four-letter type to indicate an individual’s preference. These preferences are; extraversion or introversion, sensing or intuition, thinking or feeling and judging or perceiving. Though many factors combine to determine an individual’s values, attitudes and behaviors, the MBTI summarizes the underlying patterns common to most people (Kellerman 2004, pp. 7). The MBTI tool has been used at Southwest with great success for many years. It has been used in team building, conflict resolution and leadership programs. The MBTI has been of great use in sorting out communication problems where it is used by employees identify how stress, obstacles and potential conflict may arise. The MBTI is also used as an assessment tool for team building. It helps leaders and teams by providing them with communication tools while helping them recognize and celebrate their differences. Leaders then use this knowledge to determine the best techniques for guiding subordinates to achieve better results (Kellerman 2004, pp. 13). The MBTI assessment can be used to build trust among development teams. For example, in one department leaders were new and had not developed a strong sense of trust. The company used the MBTI to help them understand each other’s differences, enabling the leaders to understand how their coworkers could tackle the same problem from a different perspective. The MBTI helped the leaders understand the reasons for their coworkers’ behaviors and this helped in building trust and empathy within the organisation (Kellerman 2004, pp. 25). Analysis of how two leaders perceive their roles, and what has helped them develop as leaders 4 Steve Jobs Steve Jobs was a co-founder and chief executive of Apple Computer till his death in 2012. He was renowned for his aggressive and demanding personality with some analysts considering him to be an egomaniac. But other analysts considered him to be a true leader exemplifying leadership through enthusiasm, courage and charisma. His innovativeness, creativity in decision-making and versatility marked a turning point for Apple. 1 The organisation Appl Inc manufactures and sells consumer electronics and personal computers. Apple operates several retail stores in numerous countries. The company’s catalog of consumer products includes computer software, personal computers, computer hardware and portable media players. Apple manufactures the Mac line of desktop computers and the Mac OS X. It introduced the iPod which is a portable media player in 2007. The corporation has a broader customer base and a distinct reputation due to its unique corporate culture (Brooks 2009, pp. 123). 2 Leadership Style of Steve Jobs Jobs introduced charismatic leadership, creativity in decision making and versatility in adapting to market conditions to Apple contributing to unprecedented success. He co-founded Apple together with Stephen Wozniak and assumed leadership positions that helped guide the company’s growth into a reputable company in the software and hardware market. The company was the first to introduce commercially viable graphical user interface in the early 1890s. Jobs creativity was evident in his major decisions that made Apple emerge as an innovation leader. For example, he partnered with Microsoft to ensure the survival of Apple. His leadership style inspired Apple to return to its innovative roots by shifting to software production. This shift to software production inspired the development of iTunes and ultimately to the iPod which was a huge success (Brooks 2009, pp. 126). The success of Apple under Steve Jobs was influenced by both leadership skills and situational factors. The company needed to change its fortunes, but there was a lack of clarity on the direction to take making the situation difficult for the leader. The company needed a leader who had the ability to inspire his subordinates and provide structure. Such a leader needed to be in a position of adequate influence. The unfavorable condition made leaders’ traits and skills critical to the success of the company (Conger 2006, pp. 18). On selecting Jobs to lead the company, Apple changed its leader-subordinate relations to suit Jobs charisma and style. Due to the adjustment in the leader-subordinate relationship, followers were more willing to accept his leadership and willingly accomplished tasks. The company was not only able to improve its performance, but it also placed itself in a position to exploit emerging opportunities in the smart phone market (Conger 2006, pp. 23). In relation to leadership theories, the most applicable to the case of Steve Jobs is transformational theory. Jobs had a vision to transform apple into a software producer and focus on customer experience. He also demonstrated a willingness to take risks by partnering with a former rival in Microsoft. Jobs exhibited sensitivity to his subordinates by attributing his success to them. He credited his followers for enabling the company to focus on innovation and customer satisfaction. Jobs hired Jeff Robin to develop iTunes; this helped the company take important steps towards success in the music industry (Gill 2011, pp. 68). Jobs used transactional leadership in his role. First he established the company’s strategy of transforming into a software producer, and then he guided and motivated his subordinates by assigning them roles and tasks to ensure the achievement of the goals set. He then rewarded the staff according to success in achieving the goals set (Gill 2011, pp. 81). 5 Bill Gates Gates is the chairman and chief executive of Microsoft Corporation, the world leader in software development and personal computer production. Gates’ vision and foresight regarding personal computing have been central to the success of Microsoft. He is actively involved in making important management and strategic initiatives for the company. He also participated in the technical development of new products while at the same time interacting with the company’s employees and customers around the world. The company prefers to hire fresh graduates as they are easier to teach the demands of the job unlike those who have worked elsewhere. The company seeks out only the best software writers to keep ahead of the competition. Gates emphasizes that only the best and the brightest are hired, and work is carried out in small teams in order to stimulate free and creative thinking. Gates embraces transactional and transformational leadership in his management. For higher-level managers, Gates uses rational persuasion including logical arguments with factual evidence to persuade them to implement the recommended action. This is the hallmark of transformational leadership. Microsoft is renowned for rewarding employees with huge remuneration packages, and this is in line with transactional leadership where rewards are used to induce better performance (Goleman, Boyatzis and McKee 2002, pp. 234). Gates has expertise in the field of software development, and that makes others depend on him. According to Fiedler’s theory, leadership effectiveness is a result of the interaction between the leader’s style and favorable characteristics in the environment in which that leader works. This is the case for Gates and has largely contributed to his excellence in entrepreneurship and leadership (Goleman, Boyatzis and McKee 2002, pp. 247). Summary of the learning you can take from this assignment for your own practice and development as a leader There are several theories that try to define leadership in terms of character traits of leaders, style or contingent factors. These theories tend to define leadership in terms of the personality of the leader or the context in which the leader is working. New leadership theories perceive the leader as a vehicle for driving the organisation’s vision and strategy. Such theories treat the leader as the person responsible for inspiring transformation in the organisation (Huczynski and Buchanan 2007, pp. 247). Leadership in many organisations adopts the characteristics defined by different leadership theories to a varying degree. However, a common factor in most organisations is the use of transformational and transactional leadership in guiding the followers into achieving organisational objectives. Fiedler’s Model is used to a varying degree by both Steve Jobs and Bill Gates. The fact that both led organisations which exploited their talent to the maximum inspired their followers to maintain the high standards they set for their respective organisations. It is not by chance that the organisations they led were very successful as they worked in environments which favored their best qualities (Huczynski and Buchanan 2007, pp. 261).   Bibliography: Brooks, I., 2009. Organisational Behaviour: individuals, groups and organisation. Harlow, England; New York: Prentice Hall/Financial Times. Conger, J., 2006. The Practice of Leadership: Developing the Next Generation of Leaders. Hoboken: John Wiley & Sons. Gill, R., 2011. Theory and Practice of Leadership. London: Sage: Goleman, D., Boyatzis, R. and McKee, A., 2002. The New Leaders. London: Time Warner Paperbacks. Huczynski, A. and Buchanan, D., 2007. Organizational Behaviour. Harlow: Financial Times Prentice Hall. Kotter, J., 1990. Force For Change: How Leadership Differs from Management New York: The Free Press Northouse. P., 2010. Leadership: Theory and Practice. Thousand Oaks: Sage Publications. Pardey, D., 2007. Introducing leadership. Harlow, England; New York: FT Prentice Hall. Rollinson, D., 2005. Organisational Behaviour and Analysis: An Integrated Approach. Harlow: Prentice Hall/Financial Times. Bass, M., and Bass, R., 2008. The Bass Handbook of Leadership: Theory, Research, and Managerial Applications. New York: Free Press. Kellerman, B., 2004. Bad leadership: what it is, how it happens, why it matters. Boston: Harvard Business School Press. Read More