Transactional and Transformational Leadership - Literature review Example

Transactional and Transformational Leadership (Name) (University affiliation) Transactional and transformational leadership Leadership In order to understand the two, it is important to define leadership. Leadership is associated with the management workers that are charged with giving inspiration, operational oversight, objectives, and as well as other administrative service to an organization. Thus, an effective leadership in a firm can help employees to prioritize their objective as well as provide guidance towards realizing the firm’s overall vision. As such, leadership occurs when a leader and the follower are in an exchange-based relationship. For example, a manager may assign the subordinate some tasks and as a result discourse on the same based on the progress. Accordingly, the relationship’s main objective is to meet the other party’s needs. In addition, the relationship between the leader and the follower is often transitory. Ultimately, leadership is effective as long as the relationship between the leader and follower is of mutual benefit Fiedler Contingency Model Developed in mid-1960s by Fred Fiedler, Contingency Model argues that there is perfect style of leadership. Instead, one’s leadership effectiveness depends on the situation. Transactional and Transformational Leadership According to Burns (1990), Transactional and Transformational Leadership can be distinguished by how each leadership style motivates its followers. Burns gives a general definition by asserting that transactional leadership approach occurs when leaders in the organization motivates the workers in achieving goals through mutual exchange. For instance, the leaders can motivate their workers through giving them bonuses for the organizational goals to be achieved. Conversely, Transformational leadership occurs when the leaders in the organization seek to appeal to their subordinates’ character and inspire workers to strive beyond the organizational goals. Transactional Leadership Moreover, Transactional is based on leader-follower relationship or exchanges. In effect, subordinates perform in accordance with the direction and will of their leaders and in turn, the leaders reward positively for their efforts. Discouragingly, the reward could as well be punitive if the results are negative resulting from failure by the subordinates to comply with the intent settled by their leader. On the other hand, if subordinates comply with the leader’s settled objectives, the subordinates get recognition, praises, and even tokens. According to Schermerhorn et al., (2000), there are four key facets of transactional leadership: rewards, passive management by exception, laissez-faire and active management by exception. Characteristics of a Transactional Leader Practical: more often than not, transactional leaders focus on promoting success with rewards as well as punishments, performance and maintaining compliance with the organizational values and norms. Accordingly, transitional leaders go by what the organization stipulates as far as running of the organization is concerned. For instance, a manager expects his subordinates to report at work on time the company’s stipulated time thus not considering the subordinate’s challenges. Second, transactional leaders center on managing as well as supervising their workers on group performance. In effect, they pay attention on the subordinates’ work in order to evaluate any possible deviation from the firm’s set standards. For instance, they develop performance contracts to manage the workers as far the expected goals are concerned. Third, transactional leaders ensure success through the rewarding and punishing of employees. Accordingly, their tools of trade are contingent positive as well as negative reinforcement. Transactional leaders often use the existing organizational structures to delegate their duties. Moreover, they fixed to the organizational culture and cannot apply new innovate measures that are out of the organizational structure to promote success in the organization. Transactional leaders are change resistant. They often dislike change, as they want things to be done the normal way. Additionally, they do not subscribe to new ideas they believe routine and organizational culture should the basis of running the organization. Moreover, according to these type of leaders, workers are not supposed to think for themselves or apply their innovation in carrying out their tasks. Ultimately, the transactional leaders often use the organizational predetermined criteria to monitor and assess performance thus no room for change. Transformational Leadership Transformational leadership occurs when leaders alter the attitudes as well as the beliefs of the subordinates. Accordingly, they inspire workers in their own interest parallel to the firm’s success (Burns, 1978). These leaders facilitate new ideas by altering the approach on issues. Furthermore, they foster excitement and inspiration to put extra efforts in achieving common goals. Burns (1978) summarizes transformational leadership by basing it in four facets: communication, charisma, individual consideration and intellectual stimulation. Characteristics of a Transformational Leader His or her way of working is based on intellectual stimulation. More often than not, transformational leader work out of the organizational culture as they challenge the existing status quo and are not afraid of failure. In additional, they often promote an environment, which is safe for having conversations, a place where subordinates feel valued and an environment that is creative and voice ideas. Ideally, the transformational leaders think outside the box regardless of the organizational norms to inspire passion within their teams as well as peers. For in instance, a manager may encourage workers to use their formulas in carrying out their task if they so wish; they are not confined to the routines and norms of the organization for its success. Ultimately, transformational leadership is turning “me moments into we moments.” Transitional leaders work with subordinates based on individualized consideration. In effect, transformational leaders treat workers the way they want to be treated. They regard individual desires, as they are different. Moreover, these leaders have learned to adapt their style in accommodating the skills and people in their team. Idealized influence; a transformational leader leads by example and is a mentor of all sorts. Through their charismatic vision and behavior, they engender loyalty, trust, respect and admiration amongst the workers. These leaders achieve this, through delineating a vision as well as explaining how to attain it in an appealing manner. Second, they lead by example, share risks with subordinates and act confidently and optimistically. Third, these leaders emphasize values and reinforce them through symbolic actions. Lastly, they often display a high level of moral conduct and ethical behavior. A transformational leadership to depicted, a leader will require a decision-making capability that works for the greater good. Burns (1978) asserts that value-based leadership is often necessary in driving a sustainable change since it ensures results are based on a strong ethical and moral foundation. In this regard, they can always stand up any scrutiny as well as resistance to change. Ultimately, managers who employ idealized influence on their subordinates gain confidence and trust of their followers. In any given situation, workers will always admire a manager as a role model based on how he makes decisions. Transformational leaders persevere through conflict: research shows that transformational change creates conflict. Accordingly, through transformational change, the managers will experience resistance as well as people ignoring them. As such, a transformational leader knows how to bring all such kinds of people to work with him or her. Effects of Transformational Leadership on Unit Transformational Leadership can always impact each unit in the organization in positive ways. First, through recruiting, the recruitment team can apply their own inventive ways to get employees that display more than what is on their Curriculum Vitae. Second, transformational leadership is aimed at develop the organization hence its growth. As such, the organization can benefit a great deal from transformational leadership, as it is not resistant to change. Third, in training the employees can learn how to freely use their ideas into transforming the organization regardless of the organizational norms. The organizational image will benefit from the positive perception it will get from its stakeholders as it incorporates almost everyone in the decision-making of the organization. Conclusion Evidently, a transactional is not appropriate for an organization with an objective of growing as it sticks on the adherence on the organizational norms, rather than openness to innovation. On the contrary, a transformational leadership style is appropriate since it creates a vision and inspires the workers to strive beyond what the organization has set for them. Consequently, with transformational leadership, an organization can expand as well as create job satisfaction for employees. The transactional leadership is associated with dictatorship and coercive power thus there is hardly job satisfaction for the employees. Many successful and renowned organization have excelled through transformational leadership. Recommendation Effective transactional and transformational leadership can lead towards job satisfaction if the following is employed; I) The vision and mission must be clear to each worker. Later, the vision and mission will be transformed into the departmental and organization goals. However, employees need to be consulted when establishing these goals as they would want to feel as part of the organization. II) Although the transformational leadership is appropriate, the transactional leadership should also be facilitated where possible. For example, rewarding employees where they have done well and criticism censure and correction where the employees presently go against the set norms. III) Supervisors should be flexible and apply each leadership style based on the situation or the environment employees are working in. References Bass, Bernard M., (1990). Bass & Stogdill’s Handbook of Leadership. (Rev. Ed.) New York: Free Press. Kent, K. C., Zwolak, R. M., Jaff, M. R., Hollenbeck, S. T., Thompson, R. W., Schermerhorn, M. L., ... & Cronenwett, J. L. (200o). Screening for abdominal aortic aneurysm: a consensus statement. Journal of vascular surgery, 39(1), 267-269. Peters, L. H., Hartke, D. D., & Pohlmann, J. T. (1985). Fiedler's Contingency Theory of Leadership: An application of the meta-analysis procedures of Schmidt and Hunter. Psychological Bulletin, 97(2), 274. Scandura, T. and Williams, E., (2004). “Mentoring and transformational leadership: The role of supervisory career mentoring”, Journal of Vocational Behavior, Vol. 65, pp.448-469 Read More