Analysis of Transactional Leadership - Essay Example

Running Head: Transformational Corporate Leaders Transformational Corporate Leaders [Institute’s Transformational Corporate Leaders Introduction Experts all over the world agree to the fact that the credit for coining this term of “transformational leadership” goes to Downtown in 1973. However, more importantly, James McGregor Burns deserves all the credit for transforming this term from a mere term to an applicable, explainable, and understandable concept of leadership. It was with his book about political leadership in 1978 that he presented in front of the world two concepts of transactional and transformational leadership. While drawing a line between these two modes of leadership, McGregor is of the view that transactional leadership is the most common form of leadership where the focus is on the exchange that occurs between leader and his sub-ordinates. Politicians who promise “more development,” managers that reward their employees with “promotions” and classroom teachers, which grade students on their completed work, engage in transactional leadership. According to the definition of transactional leadership, “it refers to the leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements” (Robbins, pp. 44-51, 2001). However, “transformational leader are those who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on their followers” (Robbins, pp. 25-31, 2001). As the definition implies, transformational leaders have a boarder vision and go one-step further than transactional leaders. These people actually make an effort to engage and develop and connection with their sub-ordinates or followers and then work towards increasing their motivation levels and making them realize their full potential. More importantly, during this process not only the leader transforms his followers but also finds a transformation in him as well. Mahatma Gandhi is one of the most cited examples of transformational leadership. He influenced the Hindus of the South Asia, raised their hopes and demands, made them felt their needs and rights and during this process he ultimately found himself transforming from Mohandas Karamchand Gandhi to “Mahatma Gandhi” (Tichy & Devanna, pp. 85-97, 1990). Other examples include A. G. Lafley of Procter & Gamble, Andrea Jung at Avon, Jim McNerney of Boeing and Orin Smith at Starbucks, Steve Jobs founder of Apple Computer, Mary Kay Ash from Mary Kay Ash cosmetics and others (Daft, pp. 41-49, 2007). A study conducted with five corporate leaders, which have performed like transformational leaders indicated that they have contributed to the growth of their organizations and lead to significant events like diversifications, new product launches, mergers acquisitions, takeovers and other crucial decisions. Moreover, all of them seemed to be acting like a father figure for their organizations and subordinates. The study was able to identify seven very important characteristics of these leaders, which are sincerity, bonding and developing personal relationships, consultation, and participation, teamwork, supporting and empowering others, serving as a role model and being open to change and innovation (Daft, pp. 41-49, 2007). After providing a comprehensive overview of transformational leadership, this paper now would move on to the important question of “Are transformational leaders made or born?” This paper would try to present the viewpoints of both the sides with examples and logical, theoretical, and rational arguments to prove the point. Discussion Transformational Leaders are Born It is very common to hear that “This guy is gifted” or “He has all the potential to complete this task” (Hacker & Roberts, pp. 198-204, 2003). This is also common to hear about transformational leaders. Having a natural gift for something or having the potential refers to an inbuilt capacity or a natural characteristic, which someone has. It is very difficult to disagree to the fact that some people are born with some genes or some thing, which distinguishes them from others. Despite the fact that this paper focuses on transformational leaders from the corporate world but for the sake proving the point, if broaden our focus on transformational leaders, we will find ourselves with plenty of evidences. Let us take the example of Jesus Christ. Without any doubts, he transformed his society and his followers completely and was truly a transformational leader and right from the very first day, he showed the world that he has that spark in him. His life history tells the world Muhammad, despite of all the controversies, a great transformational leader of Arab who deserves the credit for mobilizing and revolutionizing the illiterate, undisciplined, and cursed Arab society from nothing to the conquerors of the world (Hacker & Roberts, pp. 198-204, 2003). Muhammad’s childhood, teenage and adulthood has plenty of evidences of him becoming a great leader in the years ahead. People like Franklin Roosevelt, Abraham Lincoln, George Patton, Hitler, Jack Welch, Steve Jobs, Rupert Murdoch and other never ever went to any leadership school or took training for what they were (Tichy & Devanna, pp. 85-97, 1990). They were just the way they were. Right from the very beginning they had that something which other ordinary, usual, and common people did not and do not have. That explains why Thomas Carlyle once wrote, “History is nothing but the biography of a few great men” (Northouse, pp. 213-218, 2009). Not only there is much evidence to support this position on theoretical grounds but also recently, some research has proved the same. Researches found some amazing similarity and co-relation between the leadership styles and approaches of identical twins, which were separated at birth and were raised in entirely different situations. Researchers made sure that the external circumstances and factors, which can affect their personality, must have significant differences. Despite all this, the research showed plenty of similarities between them, proving the fact the inbuilt capacities and genes play an important role in determining a person’s personality traits and characteristics. That is why experts say, “Leadership is not for everyone” (Sashkin & Sashkin, pp.154-158, 2003). It is just for those few people who have the right stuff in them. If leaders could be made, then we could have a factory or training institute for producing leaders and with the right ingredients and environment, we could have produced as much leaders as we can, but that is not the case (Northouse, pp. 213-218, 2009). Leaders are made Without any doubts, genes, personal characteristics, and inbuilt qualities do affect our behaviors and approaches but it affects leadership just to the extent it affects other behavior. Leadership is not about “what you have,” but it is about the fact that “what do you do with what you have” (Sashkin & Sashkin, pp.154-158, 2003). May be, some people would have an inbuilt capacity of being a leader but it is going to be his or her personal will and ambition that would determine his leadership capacities. Moreover, if transformational leadership had been a matter of a few traits and personality characteristics, life would have been much simple. Corporate organizations would have made a test to find out the level of intelligence, extroversion, conscientiousness, agreeableness and other factors and with the nearer the subject is to the desired results the better transformational leader he would be (Tichy & Devanna, pp. 85-97, 1990). However, this is not the case. No organization can tell or judge with the test results or the history of some one that he or she would become a transformational leader. Bill gates says, “I was a dropout but today the toppers of the best universities in this world are my employees.” Certainly, a few of these toppers have that leadership ability, if leaders are born leaders and certainly, Bill Gates did not have the inborn capacity of being a transformational leader. However, Bill is the leader today not because he had something in him but because on his way to this life track, he discovered, explored and learnt ways of improving him self. His driving ambition, passion, enthusiasm, zeal, desire and determination, which he learnt through his experiences and other external factors that made him from a college dropout to a transformational leader of Microsoft and Multi Billionaire (Daft, pp. 41-49, 2007). Let us not to go any further but look at what these great transformational leaders have to say about themselves. These people have repeatedly told the world that it is not about what they had at their birth but is all about what they learnt through their experiences along the way (Hacker & Roberts, pp. 198-204, 2003). For evidence, let us have a look at the seven qualities of transformational leader discussed earlier in the paper. Qualities like sincerity, participation, bonding and developing personal relationships, supporting others and being open to change; all these qualities are no alien things but pretty much attainable with practice, determination, and passion and training (Bass & Avolio, pp. 23-31, 1994). That explains why there are training institutes that claim that they can polish, if not produce leaders. Even Warren buffet, one of the greatest transformational corporate leaders says that leadership is about habit forming and even Stephen R. Covey agrees to the fact that habits are adaptable. Quite understandably, that is why his famous book “seven habits of highly effective people” is there (Bass & Avolio, pp. 23-31, 1994). Moreover, especially transformational leadership occurs when a transactional leader moves a step further. A leader who engages in management by exception and uses contingent reward when moves to circles of “idealized influence, inspirational motivation, intellectual stimulation and individualized consideration” (Bass & Riggio, pp. 145-160, 2006). It is not that someone unexpectedly would become a transformational leader but he or she would under go a process of change and development, which would enable him or her with tools to move from the circle of transactional leadership to transformational leadership. In fact, transformational leadership requires developing a sense of sympathy and links with your sub-ordinates. These feelings, emotions, and dedication to your sub-ordinates are matter of time, experience, and development. One cannot put these in any body’s genes and label them as transformational leader very early in his life (Northouse, pp. 213-218, 2009). Therefore, anybody can become a transformational leader because it does not require you to inherit something in yourself but it just requires you use whatever you have with the right approach, at right the time, at the right place and with the right people. References Bass, Bernard M., & Avolio, Bruce J. (1994). Improving organizational effectiveness through transformational leadership. Sage Publications. Bass, Bernard M., & Riggio, Ronald E. (2006). Transformational leadership. Routledge. Daft, Richard L. (2007). The leadership experience. Cengage Learning. Hacker, Stephen, & Roberts, Tammy. (2003). Transformational leadership: creating organizations of meaning. American Society for Quality. Northouse, Peter G. (2009). Leadership: Theory and Practice. SAGE. Rosenbach, William E., & Taylor, Robert Lewis. (2001). Contemporary issues in leadership. Westview Press. Robbins, Stephen P. (2001). Organizational Behavior. Prentice Hall. Sashkin, Marshall, & Sashkin, Molly G. (2003). Leadership that matters: the critical factors for making a difference in peoples lives and organizations success. Berrett-Koehler Publishers. Tichy, Noel M., & Devanna, Mary Anne. (1990). the transformational leader: the key to global competitiveness. Wiley. Read More