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Transactional And Transformational Leadership Essay

1651 words - 7 pages

Certainly, an army would not be able to battle in the war without a commander who in charges of the whole strategy. Correspondingly, any organizations cannot function without leaders. Leader is the most substantial element of successful organizations. Becoming outstanding leaders, leadership skill is vital in order to drive the organizations forward. Several leadership principles are extensively used these days. Burns (1978) identified two types of leadership comprise of transactional and transformational leadership. Hence, leaders should be capable to indicate which theory should be applied in accordance with organization’s culture and objectives. This essay aims to evaluate the ...view middle of the document...

Their purpose is to see their children become more mature and able to pursue their future’s goals. To be more precise, transactional leadership focuses on task completion whereas transformational leadership looks into the creativity and satisfaction of subordinates throughout the organization.
In addition, a number of evidences have demonstrated the effectiveness of transformational leadership in several occasions. Firstly, transformational leadership has a strong influence on positive satisfaction and behaviours of subordinates (Bass,1990; Bass &ump; Avolio, 1993; Pillai, 1995). On top of that, Huang et al. (2010) has shown that participative leadership shares some common aspects with transformational leadership in terms of inspiring subordinates to build their own ideas resulting in constructive work performance. Both theories allow subordinates to contribute their thought towards organization which is relevant to Rank et al, (2009) who advise that transformational leadership helps simplifying job efficiency as well as supporting innovative outlook. Furthermore, leader under transformational leadership is an essential factor to increase productive financial yield of the firms relating to the analysis of Barling et al. (1990) which found that a trained-manager with transformational is likely to have better potential in shifting financial outcomes to a higher level compares to a manager with non-training. The study also emphasizes that a transformational manager is eligible to change subordinates’ perception and attitudes of leaders (Barling et al., 1990).
On the other hand, transactional leadership is still capable in some situations even it may be outdated in some states. Still, contingent reward (CR) is an effective component of transactional leadership which fosters subordinates to improve their job performance. If reward is given suitably, their job performance will be enhanced. Conversely, the job performance drops if the contingent reward is not carried out which may be the cause of leaving the companies (Camps and Torres, 2011). Besides, laissez-faire or absent leadership seems to be a drawback style of leadership but there is still a strong point itself. It pressures subordinates to find a solution themselves since the leader is often absent when the problem occurs as Deluga (1990) stated that subordinates are granted for independent behaviours and likely to increase the authority and influence. In contrast to Skogstad et al, (2007) found that laissez-faire is a cause of tension among subordinates due to the characteristics of leader and stressful surrounded environment.
However, transformational and transactional leadership have some overlap impacts in different perspectives. Bass and Riggo (2006); Gracia-Morales et al. (2008) cited by Liu et al. (2011) claimed that transformational leadership is a major influence of innovation. It has a certain impact when the level of psychological empowerment is plenty (Pieterse et al., 2010)...

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