Mgt 506: Strategic Leadership - Transformational, Transactional, and Charismatic Leadership

Trident University International

Carmen M. Perez-De La Matta

Module 1- CASE

Transformational, Transactional, and Charismatic Leadership

MGT506: Strategic Leadership

Dr. Rhonda Polak

March 27, 2016

Introduction

        This paper will discuss the concepts of the transformational and the transactional leadership, including the charismatic leadership style.  Utilizing this information to compare and contrast the three different leadership styles using three different companies from the “Fortune Magazine’s Top 100 Companies to Work for 2016” (TUI, 2016) and analyze the leader terms, identify the added value, what is the impact of these styles within and overall company image, contrast the leadership style from one of the best company with one of the airlines companies least desirable in America to work for, in this case, United Airlines, and my personal views on what is needed to promote efficiency on the organization.

Transactional vs. Transformational Leadership Styles

        In order to conduct the analysis and the contrast, it is important to identify and understand the differences between transactional and transformational leadership styles.  In present organizations, the majority of followers and leaders use a transactional approach to leadership, with the end goal of exchanging one benefit for other, quid pro-quo.  The transactional leadership style can be seen everywhere, politics, jobs, political campaigns, etc.  This type of relationship can creates an environment where the leader has a sense of power over the follower, and the leader may take advantage of the situation based on the followers needs.  This kind of behavior can been experienced everywhere and the consequences can be detrimental to the followers (customers/individuals) (Burns, 1978).

        In contrast to the transactional leadership, the transformational leadership is where identifies what the follower needs to achieve success which eventually proof valuable for the benefit of both parties.  As Burns explains, the end state of transforming leadership is developing a relationship that enables mutual inspiration and advancement that converts followers into leaders and could transform leaders into moral agents (Burns, pg. 16).

        The charismatic leadership, also referred as Heroic Leadership, it is the type of relationship that exists between a leader and the led, without conflicting issues between them.  The type of leaders that are described as compassionate and competent, as well reactive and helpful.  In history, one of the main examples of a Heroic leader was Moses, who was given the authority and took upon many roles and responsibilities in support of his religious beliefs (Burns, 1978).