...Transactional Leadership vs. Transformational Leadership: What’s My Style? John E. Kaiser MADS 6661-82: Managing Organizational Change Fairleigh Dickinson University After researching and evaluating the differences between Transactional and Transformational Leadership styles I believe that I practice more of the Transformational style, however, there are certain situations that do necessitate the use of Transactional Leadership. As has been said time and time again by “leadership theorists”, no one style of leadership is perfect for all situations; effective leadership requires the ability to understand and practice a number of leadership styles depending on the situation. I believe that the Transformational style is more employee centered and employee enabling in that its focus is on the overall improvement and achievement of both the organization and the employee. Transformational Leadership allows for the empowerment of the employee, through his or her own focus and abilities on self improvement and growth. It allows for the employee to grow through their own motivations and desires as being a stakeholder in their own destiny within the organization. Unfortunately, the Transformational style is not for every employee, or rather, every employee may not have the self motivation for self improvement not only for themselves but also for the betterment of the organization. There are those times (employees)...
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...Transactional and Transformational Leadership in the Work Place In the following paper I will discuss what transactional and transformational leadership are. I will also provide examples of how each of these leadership styles plays a role in the workplace. James McGregor Burns first introduced the concept of transforming leadership; he established two concepts “transforming leadership and transactional leadership” (Burns, 1978). According to Burns (1978) the transforming approach creates a compelling change in the life of people and organizations. It creates a new way of perceptions and values. For employees, it changes their expectations and ambitions. Bernard M. Bass developed the concept of Burns’ work. He used the term transformational rather than transforming. He explained the personality traits that influence transforming and transactional leadership. He also added on to Burns’ work by explaining how transformational leadership could be measured and how it impacts follower motivation and performance (Bass, 1985). A commonly used survey called “the Multifactor Leadership Questionnaire (MLQ Form 5X)” is used to measure each component of the full range leadership. The transactional leadership style is a style which is more concerned with keeping the status quo. The transactional leaders use various incentives and power to motivate employees to perform to their best ability. These leaders tend not to see the long term in strategically guiding an organization; they...
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...types of leadership styles: Transformational, charismatic, transactional, and instrumental. Transformational and charismatic are similar in many ways, these leadership styles are more people oriented. Transactional and instrumental are similar in many ways, these leadership styles are more task oriented. Transformational and charismatic leaders must be careful to keep their focus people oriented or they may be subject to fall in to narcissism. Transactional and instrumental leaders must not be so task focus that they become autocratic and lose their followers. Transactional Leadership is defined as leadership that occurs when one person takes the initiative in making contact with others for the purpose of an exchange of valued things (Burns, Wern 1995) However, further research into this type of leadership according to Bass (1981) transactional leadership is based on the hypothesis that followers are motivated through a system of rewards and punishment.' While transactional leadership is based on a quid pro quo (something for something) relationship, transformational leadership is need based. Kark & Shamir (n.d., p.69) found that transactional leaders address the self –interest concerns of followers by exchanging rewards or recognitions for cooperation and compliance behaviors consistent with task requirements. In the current economy, it is easy to state that both transformation and transactional leadership are widely used in organizations, however transactional leadership...
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...Management Concept Douglas McGregor (Theory X & Y) William Ouchi (Theory Z) Motivation Tends to categorize people as one type or another: either being unwilling or unmotivated to work, or being self motivated towards work. Threats and disciplinary action are thought to be used more effectively in this situation, although monetary rewards can also be a prime motivator to make Theory X workers produce more. Believes that people are innately self motivated to not only do their work, but also are loyal towards the company, and want to make the company succeed. Leadership Theory X leaders would be more authoritarian, while Theory Y leaders would be more participative. But in both cases it seems that the managers would still retain a great deal of control. Theory Z managers would have to have a great deal of trust that their workers could make sound decisions. Therefore, this type of leader is more likely to act as "coach", and let the workers make most of the decisions. Power & Authority As mentioned above, McGregor's managers, in both cases, would seem to keep most of the power and authority. In the case of Theory Y, the manager would take suggestions from workers, but would keep the power to implement the decision. The manager's ability to exercise power and authority comes from the worker's trusting management to take care of them, and allow them to do their jobs. The workers have a great deal of input and weight in the decision making process. Conflict This type of manager...
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...Transactional vs Transformational: In a revision of LMX theory, the development of relationships in a leader-subordinate Dyad was described in terms of a "life cycle model" with three possible stages (Graen & Scandura, 19H7; Graen & Uhl-Bien. 1991). The relationship begins with an initial testing phase in which the leader and subordinate evaluate each other’s motives, attitudes, and potential resources to be exchanged, and mutual role expectations are established. Some relationships never go beyond this first stage. According to Graen and Uhl-Bien 1991 the first stage corresponds to transactional leadership. If the relationship proceeds to the second stage, the exchange arrangement is refined, and mutual trust, loyalty, and respect are developed. Some exchange relationships advance to a third ("mature") stage wherein exchange based on self- interest is transformed into mutual commitment to the mission and objectives of the work unit. According to Graen and Uhl-Bien (991), the third stage corresponds to transformational leadership. McGregor Burns (1978) contrasted transforming leadership with transactional leadership. Transforming leadership appeals to the moral values of followers in an attempt to raise their consciousness about ethical issues and to mobilize their energy and resources to reform institutions. According to Burns, Transactional leadership motivates followers by appealing to their self-interest and exchanging benefits. Transactional leadership...
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...Chapter 9 Charismatic and Transformational Leadership Chapter 9 Learning Outcomes • • • • • • • • • • • • • Describe personal meaning and how it influences attributions of charismatic qualities. Briefly explain Max Weber’s conceptualization of charisma. Describe the behavioral qualities that differentiate charismatic from noncharismatic leaders. Explain the locus of charismatic leadership. Discuss the effects of charismatic leadership on followers. Describe the characteristics that distinguish charismatic from noncharismatic leaders. Discuss how one can acquire charismatic qualities. Explain the difference between socialized and personalized charismatic leaders. Distinguish between charismatic and transformational leadership. Explain the difference between transformational and transactional leadership. Explain the four phases of the transformation process. Explain the basis of stewardship and servant leadership. Define the key terms listed at the end of the chapter. 2 Charismatic and Transformational Leaders • Often have a more heightened sense of who they are • Seem to have a clearer picture of their personal meaning or purpose in life sooner • Seek to actualize their personal meaning through leadership 3 Personal Meaning • Is the degree to which people’s lives make emotional sense and to which the demands confronted by them are perceived as being worthy of energy and commitment • Is the “work–life balance” ...
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...AN EXAMINATION OF LEADERSHIP TO DETERMINE A DIRECT CORRELATION BETWEEN LEADERSHIP STYLE AND ETHICAL DECISION MAKING Michael S. Huckaby BBA 4751 Business Ethics Professor Fernando Chavez Leadership is a complex and ever evolving skill-set. Good leaders not only guide behaviors of followers, but lead them and their organization to achieve common objectives. Good leaders have an ability to adapt to any setting so everyone feels empowered to contribute creatively to solving problems. Leaders of various levels of success have been studied throughout history, some good, some bad, but everlasting questions are always at the forefront of studying leadership: What is a good leader? What is the right approach to leadership or style of leadership? Do certain types of leaders produce better results? Are ethical leaders always the best leaders? If a single answer to these questions existed, perhaps society could build the mold of the perfect leader and distribute it throughout the world to solve the greater problems of society. However, this approach is unrealistic, so society is left to explore leadership in an effort to understand what makes a good leader. The primary purpose of this research paper is to critically examine whether a direct correlation exists between leadership style and ethical decision making. To answer this question, the author will examine each leadership style in terms of its definition, its multi-faceted dimensions or characteristics, and the associated...
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...Positive Leadership Theories LDR/300 Positive Leadership Theories Intro For years studies have been conducted, great minds have met, and countless other activities have been held, all in hopes of finding a viable and reliable positive leadership theory. There are numerous theories and strategies documented. Some of these are very similar to the others, some take a different approach entirely, some can be looked at as being negative at their core, and the ones we will focus on are tend to have a positive structure. Authentic leadership and its application to modern leadership Authentic leadership is an approach to leadership that emphasizes building the leader’s legitimacy through honest relationships with followers which values their input and are built through honest relationships with followers which value their input and are built on an ethical foundation. Generally, authentic leaders are positive people with truthful self-concepts who promote openness. Building trust and generating enthusiastic support from their subordinates, authentic leaders are able to improve individual and team performance. The concept of “authenticity” can trace its history back to ancient Greece, philosophers stressed authenticity as an important state through an emphasis on being in control of one’s own life. They are also self-actualized individuals who are aware of their strengths, their limitations, and their emotions; they also show their real selves to their followers and do not...
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...2015 Stephen Richard Ashmore Premier Foods 22/10/2015 Unit 5013V1 - Leadership practice Table of Contents Introduction 2 Scenario 2 Task 1 3 Task 2 7 Task 3 9 Task 4 11 Referencing 14 Bibliography 15 Introduction This unit is about being able to define and show an appreciation for key leadership principles in setting and communicating organisational direction, and the application of leadership styles in the achievement of organisational objectives. It is also about being able to differentiate between the leadership and management aspects of a job role and show an understanding of how these are integrated to enable effective performance Scenario Learners may use their own employment context, or that of another organisation with which they are very familiar, to base their assignment. However, in the case that they are not able to do so, please use the below scenario:- You are a manager, leading a department in a medium sized company. You have responsibility for setting direction, motivating and inspiring the team and individuals, and for co-ordinating workload and outputs. For this assignment I will predominantly be using examples and methods from my organisation unless otherwise asked by the assignment brief. Task 1 The Function of a Management Role The function of a management role is to complete set tasks and goals so as to make the best use of all use all the resources available in the most efficient way. The general five functions of...
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...The Transformational Leadership Report "The goal of transformational leadership is to “transform” people and organizations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building." - Steven Covey, Author of 7 Habits of Highly Successful People - www.transformationalleadership.net Developing Tomorrow’s Transformational Leaders Today The Transformational Leadership Report INDEX What is Transformational Leadership? 3 Components of Transformational Leadership 5 Transformational Leadership vs. Transactional Leadership 6 A Brief History of Leadership 8 How does a Transformational Leader work? 10 What are the characteristics of a leader of change? 10 Where Transformational Leadership and Authenticity meet 11 Transformational Leadership Behaviors 13 Recommended Reading 17 TL Publications list 19 © 2007 www.transformationalleadership.net 2 of 19 The Transformational Leadership Report What is Transformational Leadership? Leadership has been around for thousands of years, and yet we still are unable to contain it in a single definition we all agree on. Perhaps this is because leadership is continuously evolving, and more than what it seems to be, depending on how you look at it. It is a...
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...The Transformational Leadership Report "The goal of transformational leadership is to “transform” people and organizations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building." - Steven Covey, Author of 7 Habits of Highly Successful People - www.transformationalleadership.net Developing Tomorrow’s Transformational Leaders Today The Transformational Leadership Report INDEX What is Transformational Leadership? 3 Components of Transformational Leadership 5 Transformational Leadership vs. Transactional Leadership 6 A Brief History of Leadership 8 How does a Transformational Leader work? 10 What are the characteristics of a leader of change? 10 Where Transformational Leadership and Authenticity meet 11 Transformational Leadership Behaviors 13 Recommended Reading 17 TL Publications list 19 © 2007 www.transformationalleadership.net 2 of 19 The Transformational Leadership Report What is Transformational Leadership? Leadership has been around for thousands of years, and yet we still are unable to contain it in a single definition we all agree on. Perhaps this is because leadership is continuously evolving, and more than what it seems to be, depending on how you look at it. It is a complex concept...
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...Leadership Styles in Professional Nursing Nursing 351 November 20, 2010 Transitions to Professional Nursing Leadership Styles in Professional Nursing Leadership is a very important aspect within the realm of Nursing. With constantly evolving technology, poor economics leading to major hospital cutbacks, and healthcare reforms, strong nursing leadership has never been more important or necessary. Hood (2010) defines leadership as a process of influencing others to attain mutually agreed upon goals. We will discuss the differences between leadership and management. In addition, we will examine 2 types of leadership styles: Transactional and Transformational and address the effectiveness of both styles in achieving high quality of nursing performance. Leadership vs. Management Many people think of management and leadership as interchangeable. However, there is a stark difference between the two. In defining leadership and management, the one crucial difference is that a person with leadership has the ability to persuade/influence others into following their vision and putting the needs of a group ahead of an individual’s own personal needs (McGuire & Kinnerley, 2006). Leaders have this ability to inspire by employing enthusiasm, hope, optimism, and innovative methods. Leadership does entail having some management characteristics, but lacks the positional power to bring their visions to life. Management is usually an appointed position within a company (Hood, 2010)...
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...TASK 2: ORGANIZATION AND LEADERSHIP ANALYSIS WESTERN GOVERNORS UNIVERSITY Table of Contents Reflection on Seven Habits Profile2 Personal Leadership Strengths3 Personal Leadership Weaknesses5 Recommendation for Personal Leadership6 SMART Goals7 Specific Actions7 References9 Organization and Leadership Analysis Reflection on Seven Habits Profile I believe that the results after completing the seven habits profile prove that my transactional leadership style is intrinsic to my natural self. Simply put, transactional leaders work within the culture that exists and exert energy on the things within their power to control (Biscontini, 2015). My scores in each of the seven habits can directly relate to characteristics of a transactional leader. First, Category 3 of the profile, is a clear example. I have a high internal locus of control and know I have the ability to change my environment when necessary to achieve my own desired outcomes. Transactional leaders are very results-driven (Bass, 1990). In order to achieve such outcomes, I begin with the end in mind by not putting off tasks, adhering to a schedule, and also by setting up my next week on the Friday before. In relation to work tasks, I find that I am disciplined and do not let the truly important things get lost in the shuffle. However, in relation to my personal life, I struggle with balancing the importance of living a long and healthy life with the importance of living an enjoyable and...
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...Greene-Blose Abstract Good leadership is key, particularly in today‟s competitive global economy, and can make the difference between the success or the failure of the organization (Bennett, 2009). This paper looks at the CEO of the top tech company in the world, Apple Inc., and analyzes his leadership style. Steve Jobs, as Jack Welch called (Elkind, 2008), “the most successful CEO today” exhibits characteristics of both transactional and transformational leadership styles. He can be perhaps best labeled as a composite of both. He possesses micromanagement tendencies, is quick to judge, frequently yells and berates his employees, and reduces them to tears. Yet he also inspires a transcending vision who can connect emotionally with both his customer base and employees (Fannin, 2005; “Transformational Leadership”, 2002). Jobs is unquestionably an enigmatic, polarizing figure – yet his formula for success cannot be denied. A Tale of Two Steves 3 Joanne Greene-Blose A Tale of Two Steves The importance of good leadership in today‟s environment cannot be overstated. Bennett (2009) identifies leadership as determining the ultimate success or failure of the organization and Ismail, Mohamed, Sulaiman, Mohamad, and Yusuf (2011) view it as the primary force in determining competitiveness in a global economy. With this as a backdrop it is instructive to look at a very successful leader, Steve Jobs, and determine what it is about his leadership style that has driven Apple‟s success...
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...Entrepreneurial Leadership in the 21st Century A Hybrid Theory/Philosophy of Entrepreneurial Leadership With changes in society’s, economies, and the widespread growth of technology, entrepreneurship and leadership have both grown to take on many different definitions over the past century. Economists and behaviorists have conducted numerous studies and researches over the past fifteen years, and new definitions of entrepreneurial leadership have been formed. They include characteristics such as; innovators, risk takers, transformational, visionaries, problem solvers; and having the ability to operate in dynamic markets. While the aforementioned characteristics of entrepreneurial leaders have been agreed upon by many, I believe that it’s the people that have had the biggest effect within the discipline. Case (2010) and Kouzes (2008) both stated how important people are in an entrepreneurship. Their theories spoke of how important it is to align people around the company’s priorities, empowering employees, setting the example at the top, and showing care and concern for the business and its’ people. Because more people are obtaining higher education than ever before and the use of information technology provides for instant research and quicker patents, I believe that the people will continue to drive the changes in entrepreneurial leadership. We are the most important resource in any organization. Defining Leaders An organization’s development can depend on what...
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