Transactional Leadership
Frequently referred to as a managerial approach to leadership, the transactional leadership style is centered on improving efficiencies within an organization or team (McShane & Von Glinow, 2015). Leaders practicing the transactional approach focus on the details of the step by step processes and workflows using a reward and punishment system to encourage workgroup production (Dartey-Baah, 2015). As errors and inconsistent results are part of the expected norm, transactional leaders succumb to the belief that employees require ongoing monitoring and supervision to ensure compliance with the expected work practices. When used with an experienced high performing staff, the constant supervision and punitive nature of the transactional leadership style can be counterproductive, causing a decrease in production and satisfaction among some groups. In contrast, when used with newly formed production units, the transactional style has been known to improve employee engagement and response (Breevaart et al., 2014).
Transformational Leadership
As described by McShane and Von Glinow (2015)
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K., & Espevik, R. (2014). Daily transactional and transformational leadership and daily employee engagement. Journal of Occupational Psychology, 87, 138-157. http://dx.doi.org/10.1111/joop.12041
Dartey-Baah, K. (2015). Resilient leadership: A transformational-transactional leadership mix. Journal of Global Responsibility, 6(1), 99-112. Retrieved from http://search.proquest.com.library.capella.edu/docview/1675140305?pq-origsite=summon&http://library.capella.edu/login?url=accountid=27965
Marquis, B. L., & Hudson, C. J. (2015). Leadership roles and management functions in nursing (8th ed.). Philadelphia, PA: Lippincott Williams & Wilkins.
McShane, S. L., & Von Glinow, M. A. (2015). Organizational behavior: Emerging knowledge, global reality (7th ed.). New York, NY:
The strengths influence every level of the organization, and it is well and widely researched. It is very appealing since the followers believe it is rational. It is process-focused, transitional leader treats leadership as a process occurring between the followers and leaders(Suresh. A. Rajini. J 2013). Transformational leadership has extensive sweep that integrate and incorporate other leadership models.
The Institute of Medicine (IOM) has a strong stance on nurses and leadership. They believe that nurses are a vital component to health care system and nurses in leadership roles can have a positive impact on such. Nurses are in all sorts of roles within the health care systems ranging from a staff nurse, nurse managers, to advance practice, all the way to congress (Finkelman & Kenner, 2013). In addition, they even serve in the boardroom within some health care organizations. Leadership doesn’t necessarily mean a nurse in a manager position, but a nurse who has an influence on staff.
Transactional Leadership is based on the principles of the social exchange theory, in which an individual would expect to give and receive benefits or rewards when engaging in a social interaction (Sullivan, 2012). The interaction will cease if one or both person decides that the exchange of benefits and rewards are no longer worthwhile. Transactional Leadership theory also focus on the task that need to be carried out and makes sure they are done the right way as compared to Transformational Leadership theory which focus on staff empowerment (Marquis and Huston, 2015). A nurse manger in a department or ward is a good example of Transactional Leadership theory.
Definition According to Organizational Management and Leadership: A Christian Perspective by Anita Saterlee, research done by J.M Burns indicated that transactional leaders lead by understanding the underlying principles of management and then applying those principles in the workplace. Transactional Leaders will guide followers to achieve organizational goals, guide and motivate their followers in the direction of established goals by clarifying roles and task requirements, and define the purpose of the organizations’ existence to followers and then provide them with the plans and means to attain goals (2013, p. 5) Summary This article was published through the Canadian Center of Science and Education.
Transactional leadership, therefore, encourages specific performance and behaviors by making rewards contingent on delivering as per the
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
Bass & Riggio (2005, pp. 4-8) explains that transformational leaders inspire their followers to exceed their own expectations and perceived capabilities and is comprised of the four components of idealized influence, inspirational motivation, intellectual stimulation and individualised consideration. DuBrin (2016, p.163) suggest that leaders in a time of crisis need to
The advantages of transactional leadership are in its clear policies, structure, and efficiency. The disadvantages of transactional leadership include stifled creativity, impaired initiative, and inflexibility of the organisation. Furthermore, reward incentive models are consistently shown to be ineffective in the long term (Gneezy et al.,
Introduction Organizational Behavior is the field of study which investigates the impact that individuals, group and structures have on behavior within the organization. We are born in an organization, we live, we work and most probably we will die in an organization. Yet most of us do not understand how people function, behave and interact between each other within these organizations. We also do not understand if people shape an organization or an organization shapes people. Different people work differently in different situations.
TRANSACTIONAL LEADERSHIP STYLE Transactional theory, as its name implies, involves a “transaction” or quid pro quo between a supervisor and a subordinate. It is important to adopt the appropriate leadership style for assuring the success of organization. Parry & Thomson (2002) stated that in some cases, transformational leadership becomes inapplicable to ensure subordinate’s honesty from examining and appraising by a leader. Then the leader can practiced transactional style of leadership. Literally, transaction means “exchange” therefore transactional leadership is described as instrumental exchange between leader and subordinate.
“The study of history has been a study of leaders – what they did and why they did it” (Bass, 2008: 4). New contemporary styles of leadership have emerged that arguably are more successful in the long term (Dawson & Andriopoulos, 2014). This report critically evaluates different styles of leadership to determine if a transformational style will have a more decisive effect on employee motivation and organisational culture culminating in long term prosperity of the business. Fresh perspectives to leadership are required if organisations are to be successful in times of change while at the same time increasing employee morale (Conger, 1999). Studies done by Burns (1978) differentiates between transactional leaders and transformational leaders.
The character of this leader convinced his employees to exceed their performance in offering excellent customer service. This will aid to achieve the company’s objectives as well as improve the employees’ needs for achievement and self actualization (McCleskey, 2014). The Operations Managers at CIBCFCIB practiced the transformational leadership style where they inspire and motivate the team members to exceed their performance in providing high quality customer service and flawless delivery, and staff usually rewarded. In addition, operations managers and leaders provide learning opportunities and a supportive environment which increased efficiency. On the other hand, Transactional leaders focus on accomplishing their performance objectives, motivate employees through contractual agreement, stress extrinsic rewards and to avoid unnecessary risks (Burns, 1978 cited by McCleskey, 2014).
Organizational behavior is defined as the examination and application of understanding on how people and individuals along with groups behave in organizations. In other words, it defines people-organization relationship in relation to the whole individual, whole team, entire organization, and entire social system. Its intent is to shape relationships in a positive way by realizing social goals and human objectives along with organizational goals (Yukl et al. 2013). The mystery behind leadership makes it not only one of the most widely discussed and studied topic, but also a sought after aspect of organizational behavior.
They explain TL effect on team members, and the behavior used to attain this effect. The subordinates feel faith, respect, faithfulness, and esteem toward the leader, and they are interested to do more than they initially expected to do. Transformational leaders inject motivation and exceed their personal-interest for the achievement of organization goals. Review of literature provides a big difference between transformational leadership and transactional leadership, which include an exchange procedure to inspire team members, consent with leader wishes and association rules. Transformational leadership explains different behaviors which the researchers measured with survey method and the recent version of (Bass, 1996; Bass & Avolio, 1990) presents the same concepts as: (1) regular feedback, (2) encouragement to team members, (3) calculated risk, (4) vision for future, and (5) reward to colleagues.
Before I attend to this class, I think Organizational Behavior (OB) is a concept how behavior affects the management, leadership and relationship among people in an organization resulting from the meaning of OB word by word. Nevertheless, this assumption was changed after I attend the Organizational Behavior class, which has the subject code BUS 314 thanks to my lecturer- Mr. Nguyen Dinh Hoang, who put huge efforts to inspire me to learn this subject. At the beginning of this course, he drew an overview of Organizational Behavior, is a field of study that explores the impact of three determinants: individual, groups and structure of an organization.