Transactional Leadership Principle - Essay Example

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The principles of transactional leadership are ensuring the flow of everyday operations, negotiating tangible, extrinsic exchanges, and controlling the actions of collaborators or other stakeholders (Fairholm & Fairholm, 2009, p.19).
D. The article from Gillette (2014) on…
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Hachette versus Amazon: Fixing One’s Backyard First I. Introduction A. Transactional leadership is based on organizational relationships that are centered on economic exchanges (Fairholm & Fairholm, 2009, p.19).
B. Transactional leaders are concerned primarily of the outcomes of the relationship, not the processes (Fairholm & Fairholm, 2009, p.19).
C. The principles of transactional leadership are ensuring the flow of everyday operations, negotiating tangible, extrinsic exchanges, and controlling the actions of collaborators or other stakeholders (Fairholm & Fairholm, 2009, p.19).
D. The article from Gillette (2014) on Hachette is an example of transactional leadership because the company concentrates ensuring the flow of everyday operations, negotiating tangible, extrinsic exchanges, and controlling the actions of collaborators.
II. Hachete: Company Overview
A. Hachette Book Group is a publishing company that the Hachette Livre owns.
B. Hachette Livre is the largest publishing company in France, and the third biggest trade and educational publisher in the world.
C. Hachette Book Group, Inc. publishes educational books on numerous topics and for different age levels and groups of students and learners.
D. Hachette Book Group (HBG) was made when Hachette Livre bought Time Warner Book Group from Time Warner in 2006.
E. HBG history began in 1837 with the founding of Little, Brown and Company and it continues to evolve and grow today.
F. HBG’s bestselling authors include Sherman Alexie, Julie Andrews and Emma Walton Hamilton, David Baldacci, Sandra Brown, Stephen Colbert, Chris Colfer, Michael Connelly, Jeffery Deaver, Nelson DeMille, Tina Fey, Malcolm Gladwell, Chelsea Handler, Harper Lee, John Maxwell, Brad Meltzer, Joyce Meyer, Stephenie Meyer, J.R. Moehringer, Joel Osteen, James Patterson, Randy Pausch, Jerry Pinkney, Keith Richards, JK Rowling, J.D. Salinger, David Sedaris, Lemony Snicket/Daniel Handler, Nicholas Sparks, Jon Stewart, Scott Turow, David Foster Wallace, Brent Weeks, and Tom Wolfe.
III. Hachette versus Amazon
A. Amazon has a feud with publishers regarding the pricing of e-books (Gillette, 2014).
B. Amazon wants a bigger cut of the retail price of every title, so that it can boost its ability to discount e-books (Lee, Satariano, & Hymowitz, 2014).
C. Amazon controls 60 percent of the e-books market, based on the study of Forrester Research Inc. (Lee, Satariano, & Hymowitz, 2014).
D. Forrester Research Inc. contrasted that, on the one hand, physical book sales in the U.S. are expected to decline to $19.5 billion this year from $26 billion in 2010, while, on the other hand, e-book sales are anticipated to multiply eight times to $8.7 billion (Lee, Satariano, & Hymowitz, 2014).
E. Gillette (2014) reports that the current financial struggles of Hachette make it a weaker negotiating partner compared to Amazon.
F. Hachette has laid off 3% of its workforce in United States (Gillette, 2014).
IV. Hachette’s Transactional Leadership
A. Hachette focuses on ensuring the flow of everyday operations by decreasing costs through layoffs (Gillette, 2014).
B. Hachette negotiates tangible, extrinsic exchanges by resisting the increase in power of Amazon in controlling e-book prices because it wants to ensure that it is the one profiting more and the one in power over strategic pricing.
C. Hachette controls the actions of collaborators or other stakeholders by appearing to focus on daily operations and not its struggles with contract terms with Amazon.
Fairholm, M.R., & Fairholm, G.W. (2009). Understanding leadership perspectives: Theoretical and practical approaches. New York: Springer Science.
Gillette, F. (2014, June 6). Layoffs make Hachette easier prey for Amazon. BloombergBusinesweek. Retrieved from
Lee, E., Satariano, A., & Hymowitz, C. (2014, June 6). Amazon feud with publishers to escalate as contracts end. BloombergBusinesweek. Retrieved from Read More
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