Question: Contrast transformational with
transactional leadership theory.Explain why
most current theories of
leadership are based
on situational contingencies.
ANSWER:-
Transactional Leadership
Transactional leadership styles are more concerned with
maintaining the normal flow of operations. Transactional leadership can be
described as "keeping the ship afloat." Transactional leaders use
disciplinary power and an array of incentives to motivate employees to perform
at their best. The term "transactional" refers to the fact that this
type of leader essentially motivates subordinates by exchanging rewards for
performance.
A transactional leader generally does not look ahead in
strategically guiding an organization to a position of market leadership;
instead, these managers are solely concerned with making sure everything flows
smoothly today.
Transformational Leadership
A transformational leader goes beyond managing day-to-day
operations and crafts strategies for taking his company, department or work
team to the next level of performance and success. Transformational leadership
styles focus on team-building, motivation and collaboration with employees at
different levels of an organization to accomplish change for the better.
Transformational leaders set goals and incentives to push their subordinates to
higher performance levels, while providing opportunities for personal and
professional growth for each employee.
Advantages
Both leadership styles are needed for guiding an organization
to success. Transactional leaders provide distinct advantages through their
abilities to address small operational details quickly. Transactional leaders
handle all the details that come together to build a strong reputation in the
marketplace, while keeping employees productive on the front line.
Transformational leadership styles are crucial to the
strategic development of a small business. Small businesses with
transformational leaders at the helm shoot for ambitious goals, and can they
achieve rapid success through the vision and team-building skills of the
leader.
Applications
Different management styles are best suited to different situations.
When it comes to front-line supervisors of minimum-wage employees, for example,
a transactional leadership style can be more effective. Shift supervisors at a
fast food restaurant will be much more effective if they are concerned with
ensuring all of the various stations run smoothly, rather than spending their
time thinking up better ways to serve hamburgers.
On the other hand, CEOs or sales managers can be more
effective if they are transformational leaders. Executive managers need the
ability to design and communicate grand strategic missions, passing the
missions down to transactional leaders for implementation of the details.
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