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Compare and contrast leadership models: transactional, transformational and path goal theory - Term Paper Example

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It was developed with the underlying assumptions that rewards and punishments are significant in maintaining motivation among followers and also that leadership involves social systems that can only…
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Compare and contrast leadership models: transactional, transformational and path goal theory
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The leadership style begins with bargaining the contract in which the terms of contract are discussed including the benefits that will be derived by the subordinates for accomplishing the desired organizational goals. This means that the manager ensures that the subordinate understand his/her power (Mullins, 2007). Transactional leaders utilize the available opportunities to the maximum through maintaining an astute focus on any upcoming prospects, competence in negotiation, persuasion skills and reciprocating the actions and favors of others (Mullins, 2007).

Transactional leadership calls for the establishment of good relationships with people so as to enhance voluntary following and participation in generating innovative decisions. Leaders are focused on developing a strong relationship between them and the subordinates. The transactional leader delegates tasks to the subordinates and ensures that they understand his/her expectations through developing straightforward working structures. The rewards as well as the punishments are associated with the outcome of the tasks.

Even though people are not instilled with fear regarding the punishments, they are made to understand them clearly. Transactional leadership allows followers the freedom to think creatively making it possible for organizations to increase competitiveness through inventiveness in the workforce (Reynolds, 2000). Transformational leadership is another leadership style that involves leaders who challenge the change process to motivate their followers to open up and view things differently from the conventional way.

Transformational leaders inspire people regarding new ways of approaching issues in life, which helps them to accomplish their professional goals. Such leadership is usually maintained by strong personality and ability to influence followers to act towards accomplishing particular organizational goals. Alldredge et al. (2003) observe

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