Transformational Leadership

Trident University International

MGT506 CASE 1

Introduction

        There is a distinct way managers in an organization choose their management style. Some managers choose to be more hands-off, while others depend on micro managing styles to get through the day. No matter the style, each manager should find a way to increase employee performance as well as accomplish positive changes internally.   Transformational and transactional leadership styles are total opposite when it comes to the theories of management and motivation ( XXXXXX).  Well rounded managers should know the difference between the two, in order to be successful. This case will compare and contrast transformation, transactional and charismatic leadership styles and discuss how those styles affect organizational leaders and performance.

Transformational Leadership

        Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its simplest form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders (Alimo-Metcalfe, 2001).

James MacGregor Burns was the first person to introduce this concept when describing the political leaders of his time. Today, the term has blended into all aspects of business and management. According to Burns, transforming leadership is a process in which "leaders and followers help each other to advance to a higher level of morale and motivation". This style can be summarized by the moral efforts of the leader working towards benefiting the team or organizational as a whole.

Transactional Leadership

        The transactional leadership style takes a behavioral approach and is based on a system of rewards and punishments.         Transactional leadership is often used in my military organization; when employees are successful, they are rewarded; when they fail, they are reprimanded or punished. This theory was first introduced by sociologist Max Weber and then further explored and developed by Bernard M. Bass in the early 1980’s.

“Transactional leaders monitor followers carefully to enforce rules, reward success and punish failure. They do not, however, act as catalysts for growth and change within an organization. Instead, they are focused on maintaining this as they are and enforcing current rules and expectations” (Alimo-Metcalfe, 2001). Although this style can be useful in some situations, it is not used often because it prevents both leaders and followers from really fulling their potential in the respective roles. As I stated earlier, the military often uses this style and in many cases it has negative effects on progression and organizational behavior.