Assignment Sample on 155100007 Introduction to Business, Management, Economics and Law
Introduction
This essay is about the two main styles of leadership i.e., transactional and transformational leadership. It consists of the critical discussion of these two theories and their practices. A critical analysis of these theories has been provided with the help of a relevant academic journal. The importance of an effective style of leadership has been provided with the impacts it makes on leaders to transform them into good leaders.
Two leaderships styles
Transformational theory
The theory of transformational leadership is a style of leadership that has the ability to inspire and encourage positive alterations within its followers. Its leaders are usually passionate, energetic and enthusiastic. The leaders are not just involved and concerned about the process they are even focused on assisting each and every member of the team triumph as well (Yaslioglu and SelenayErden, 2018). Its concept was initially made by James MacGregor Burns. According to him, ‘transformational leadership’ can be observed when both the followers and leaders are making one another to elevate to a higher extent of motivation and morale (Kark, Van Dijk and Vashdi, 2018). The behaviours of transformational leaders can be differently divided into four types namely idealised influence, individualised consideration, intellectual stimulation and inspirational motivation.
Transactional theory
This theory was given by Max Weber and later by Bernard Bass. It is most frequently used by the managers in the organisations (Delegach, et al 2017). Its main focus is basically on the basic procedure of management that involves planning for a short-term, organising and controlling. The leaders of transactional leadership include directing and motivating followers mainly by engaging to their personal interest. Transactional leadership has three categories. These are management-by-exception passive, contingent reward and management-by-exception active.
Critical discussion on the theories
Both transactional and transformational leadership are positively linked with possessing more positive behaviour to adopt a practice that is based on evidence. Transformational leadership style inspires and creates a vision in subordinates to drive beyond their needed expectations. On the other hand, transactional leadership is more focused on the job tasks performance’s extrinsic motivation. Transactional leadership style is proper in several settings and can support cohesion to implement standards but not certainly openness into innovation. The transactional leaders’ power occurs from their formal responsibility and authority in the organisation. The primary goal of its followers is obeying the leader’s instructions. This style can be considered as a ‘telling style’. Researches have shown that teams led by the leader of transformational leadership have seen higher performance levels and job satisfaction as compared to the other types of leaders.There have been a lot of ways by which social media has been increasing the productivity of the people. Social media has provided options for sharing of the videos in Youtube, which will deliver attraction and presentations for the people, who will be locked up in the homes during the Covid-19 situation. The employees of the organisations, have been provided with various types of works which can be done, with the use of the online platforms. It is improving the quality of the work and equally relieving the stress of the people. Mass media has been used, for reaching wider information for the people who have been staying in different parts of the cities and communities of the world. Mass media has been finding usefulness in connecting different people of the world together, who have been sharing the feelings and the aspirations, which they had been facing during the Covid-19 situation. Mass media has been used for the development of the homogenizing culture of the people even in the crisis of pandemic.
Importance of effective leadership styles presently
Effective leadership is about better management of time. That involves the time required to form decisions. In order to be a good leader, effective leadership is significant as it is not an easy job. Each and every leader of effective leadership is required to work or possess their vision and goals. Good leaders are those leaders who are the key to enhancing morale and productivity among the organisational members. Several good leaders share attitudes and traits. Effective leadership posses the following impacts on the leaders-
Making them decisive
Effective leadership lets the leader make informed decisions.
Practising what they are preaching
Effective leadership helps in making leaders who are led by examples.
Highly focused on their goals
Leaders who follow an effective style of leadership are deeply focused towards their goals.
Highly passionate about their work
Good leaders take their work seriously and they never take it casually or lead casually.
Accountable and humble
Effective leadership that depends on generating dignity and respect that is earned rather than depending on the position of an individual in the organisation.
Helping followers to grow
Effective leadership helps its followers to grow and develop in their work rather than just working.
Evaluation and analysis of the theories
According to Cho et al, (2019), transactional leadership or TSL and transformational leadership or TFL have been at the frontline of the literature in leadership for the last two decades and it has grasped the attention so tightly that no other theories of leadership has been paid much attention to (Cho, et al 2019). The effects of leadership may happen at the same time and effective leaders often supplement TFL and TSL. Past researchers have focused greatly on the interactions of both these leadership theories with situational factors. It appears to be possible that managers frequently use both the styles of leadership to distinct levels to lead their workers. TFL refers to that types of leadership that changes followers by making them think about the organisation’s interest instead of their own interests, elevating their morale, motivating them to test how their values match with the organisation’s, engaging their proper sense of what the firm can be and uplifting them to provide their best for their highest good.
On the other hand, TSL includes rewards, exchanges and expectations. It provides management-by-exception passive, contingent reward and management-by-exception active. Leaders giving contingent rewards encourage their followers to the anticipated performance utilising constructive exchanges or transactions (Lee, 2021). Passive Management-by-exception includes corrective action in occurrences where the outcomes of transactions of leader and follower necessitate unmet expectations. However, active management-by-exception includes intervention before issues develop such that leaders look after their followers’ activities and obtain preventative actions as required instead of waiting unless the issues have already happened. TSL drives to restore followers intellectually by demanding them to rethink or re examine their work and the leaders might be considered as incompetent in societies with high distance of power that encompass hierarchical differences. These leaders are even agents of organisational change. They motivate their followers in transforming themselves by trying new ways of working and pushing their working limits.
Conclusion
Transactional and transformational leadership are the two most renowned leadership styles. From the above critical discussion and critical analysis it has been clear that transformational leadership is the most effective style of leadership among the two presently. It is because transformational leadership allows the leaders to not just be able to work for the organisation but look after the growth and well-being of the followers.
References
Cho, Y., Shin, M., Billing, T.K. and Bhagat, R.S., 2019. Transformational leadership, transactional leadership, and affective organizational commitment: a closer look at their relationships in two distinct national contexts. Asian Business & Management, 18(3), pp.187-210. https://fardapaper.ir/mohavaha/uploads/2019/03/Fardapaper-Transformational-leadership-transactional-leadership-and-affective-organizational-commitment-a-closer-look-at-their-relationships-in-two-distinct-national-contexts.pdf
Delegach, M., Kark, R., Katz-Navon, T. and Van Dijk, D., 2017. A focus on commitment: The roles of transformational and transactional leadership and self-regulatory focus in fostering organizational and safety commitment. European Journal of Work and Organizational Psychology, 26(5), pp.724-740. https://www.researchgate.net/profile/Dina-Dijk/publication/318067668_A_focus_on_commitment_the_roles_of_transformational_and_transactional_leadership_and_self-regulatory_focus_in_fostering_organizational_and_safety_commitment/links/5a2598dcaca2727dd880e152/A-focus-on-commitment-the-roles-of-transformational-and-transactional-leadership-and-self-regulatory-focus-in-fostering-organizational-and-safety-commitment.pdf
Kark, R., Van Dijk, D. and Vashdi, D.R., 2018. Motivated or demotivated to be creative: The role of self‐regulatory focus in transformational and transactional leadership processes. Applied Psychology, 67(1), pp.186-224. https://www.researchgate.net/profile/Dina-Dijk/publication/321493243_Motivated_or_Demotivated_to_Be_Creative_The_Role_of_Self-Regulatory_Focus_in_Transformational_and_Transactional_Leadership_Processes/links/5a25abc70f7e9b71dd09cba1/Motivated-or-Demotivated-to-Be-Creative-The-Role-of-Self-Regulatory-Focus-in-Transformational-and-Transactional-Leadership-Processes.pdf
Yaslioglu, M.M. and SelenayErden, N., 2018. Transformational leaders in action: Theory has been there, but what about practice?. IUP Journal of Business Strategy, 15(1). https://www.researchgate.net/profile/Muhsin-Yaslioglu/publication/340855757_Transformational_Leadership_A_Qualitative_Study_for_the_Practical_Usage/links/6064ae08a6fdccad3f61f021/Transformational-Leadership-A-Qualitative-Study-for-the-Practical-Usage.pdf
Abdullah, N.N. and Anwar, G., 2021. Global Financial Outlook during the COVID-19 Pandemic: The role of effective leadership styles on Financial outlook. Available at SSRN 3824670. https://www.researchgate.net/profile/Nabaz-Abdullah/publication/350582398_Global_Financial_Outlook_during_the_COVID-19_Pandemic_The_role_of_effective_leadership_styles_on_Financial_outlook/links/6067826d458515614d2e4936/Global-Financial-Outlook-during-the-COVID-19-Pandemic-The-role-of-effective-leadership-styles-on-Financial-outlook.pdf
Lee, M.R., 2021. Leading virtual project teams: Adapting leadership theories and communications techniques to 21st century organizations. CRC Press. http://ndl.ethernet.edu.et/bitstream/123456789/47248/1/387.pdf
