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Transactional Theory Of Leadership Style

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Leadership can be defined as an interaction process between leaders and their employees, whereby leaders attempt to inspire employees to fulfill shared goals (Northouse, 2010; Yukl, 2005). Leadership style is the manner and method of motivating people, providing direction and achieving goals (Amirul & Daud, 2012). Style can either encourage or discourage employees’, which can in turn lead to increasing or decreasing performance levels (Belonio, 2012). However, leadership has been of interest to many researchers, who have planned numerous leadership theories and models. According to Doyle and Smith (1999), leadership theories can be divided into four categories: trait, behavioral, contingency, and the transformational and transactional theories. …show more content…

Transformational leadership arises when a leader raises the level of cognizance about the value of desired results and expands subordinates’ wants and needs (Bass, 1985). According to Schepers et al., (2005), transformational leaders permit subordinates to think creatively, analyze problems from different angles and provide improved resolutions by using technology. Gill et al. (2006) claimed that organizations can diminish job strain and burnout by adopting a transformational leadership style. Many studies have specified that transformational leadership has positive effects on followers' efforts and satisfaction (Bycio et al., 1995; Kirkpatrick & Locke, 1996; Parry, 2000). Compared with other styles, transformational leadership is deemed beneficial in developing leaders and enhancing subordinates' faithfulness, faith and self-esteem (Barling et al., 1996; Northouse, 2009). Therefore, transformational leadership is the most effective form of leadership, where the leaders are closely involved with, and motivate their subordinates to attain beyond their transactional agreements (Panagopoulous & Dimitriadis, …show more content…

Bass and Avolio (1995) further developed the theory. According to them, transformational leadership has four components; charismatic role modeling, individualized consideration, inspirational motivation, and intellectual stimulation. Using charisma, the leader inspires admiration, respect, and loyalty, and emphasizes the importance of having a collective sense of mission. By individualized consideration, the leader builds a one-to-one relationship with his or her followers, and understands and considers their differing needs, skills, and aspirations. By inspirational motivation, the leader articulates an exciting vision of the future, shows the followers how to achieve the goals, and expresses his or her belief that they can do it. By intellectual stimulation, the leader broadens and elevates the interests of his or her employees (Bass, 1990b), and stimulates followers to think about old problems in new ways (Bass,

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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

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According to Burns, “transactional leaders approach followers with an eye to exchanging one thing for another…these transactions comprise the bulk of the relationships among leaders and followers” (p. 3) Transformational leadership, on the other hand, involves influence, of and by, both the leader and the follower. It is a process of mutual influence. Leaders not only lead, but also develop other leaders. Expanding on Burns’ distinctions, Bass (1995) asserts that “Transforming leaders convert followers to disciples…and provide followers with a cause around which they can rally” (p. 467).

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Leadership has many definitions. Chin, Desormeaux, and Sawyer (2016) define leadership as a relationship between followers and a leader with the intent to promote change through a mutual vision. Therefore, leaders are active influences in the outcome of organizations, through their decision-making, strategies, and influence on followers (Dinh et al., 2014). Additionally, in the nursing context, it has been documented that a leader 's style plays a factor in patient outcomes (Fischer, 2016). Indeed, in an ever-changing, complex health care environment, nursing leadership has become a crucial factor in managing challenges and maintaining patient safety (Fischer, 2016).

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There are a plethora of leadership theories in existence, but there has yet to be one specific theory that can guarantee success in any organization, in any situation. However, in the last few decades, scholars have taken a particular interest in the theory of transformational leadership for several reasons. The idea of transformational leadership was first introduced in a book titled Leadership, written by James MacGregor Burns in 1978 (Worth, 2014, p.106). Burns describes transformational leadership as a contrast to transactional leadership, which illustrates a relationship between leader and follower that revolves around transactions of rewards and punishments (Worth, 2014, p.106).

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TRANSFORMATIONAL LEADERSHIP Transformational Leadership is defined as leadership style focused on effecting revolutionary change in organizations through a commitment to the organization’s vision. (Sullivan & Decker, 2001) Transformational leaders are usually given higher position and are known for their charismatic sense and ability to develop high visions and regards in the work they do. They often give their best performances due to the low morale or self esteem Example: Steve Job, Bill Gates and Ratan Tata. As the existentialist rightly said, we always have a choice, in doing what we already have done or doing that which we have never done.

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Transformational Approach Transformational leadership style work towards high levels of communication from a management to meet goals. Leaders are meant to motivate employees and augment productivity and efficiency through communication and high visibility. This style of leadership really does need the involvement of management to meet goals. Leaders focus on the big picture within an organization and delegate smaller tasks to the team to accomplish goals. Transformational leadership proves to be efficient not only in business, but in all other sectors where it is used.

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Criticism of transformational leadership whereby conceptual clarity are lacked . This is due to it had a broad range of activities and characteristics including vision creating , trust building and so on . Research shown that the components of transformational leadership are overlapping and undefined dimensions . Secondly , transformational leadership are measured whereby there are distinct factors with one another . Some of the transformational factors are not interrelated with transactional and laissez-faire factors .

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Transformational Theory Transformational Theory is a leadership style applied where the leader act as changing agents in the organization which the leader itself want to change and transform the organization to become better. The leader also try to develop role and commitment to the employee toward the achievement of the organization goal. This leadership style rarely applied in the organization because most of the organization just want to maintain the current practice unless for the organization that started want to transform to become big organization. There are four elements of transformational leadership which are: a) Develop and communicate a strategic vision The leader develop new strategies and challenging vision toward the achievement of the organizational goal.

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Understanding leadership Describe the factors that will influence the choice of leadership styles or behaviours in workplace situations Leaders are performing different styles of leadership, as each leader maintain to develop her/his own personal style. Many factors may influence the style a leader uses. Some of the factors may create naturally, while others are a product of the leader's environment. Some leaders may need to improve their leadership style to follow to a changing culture. a. Personality Traits: A leadership style may become an expansion of the leader's personality.

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Transformational Leadership As described by McShane and Von Glinow (2015)

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They are enthusiastic individuals are usually seen as active, expressive and energetic. They are often optimistic and open to change with a quick and alert mind set. Transformational leaders in today’s society are better for the organization because in maintaining a business for the long term, leaders need to focus on the overall growth of originality and

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Through self-reflection and academic readings, I have discovered that I identify with three different leadership theories. During the first meeting in a Strength Based Leadership class, we were asked to write our leadership history. The class then began an ongoing exploration of various leadership theories. Upon reviewing my leadership history from the first class and synthesizing the information from the theories that were examined, I discovered that I most resonate with the Trait Leadership Theory, the Skills Leadership Theory, and the Path-Goal Leadership theory. These theories are leader focused, describing the process and techniques a leader uses to accomplish goals.

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In developing a theoretical framework of transformational leadership the study focuses on Leithwood and Jantzi (1994) “Effects of transformational leadership on

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Different scholars identified various kinds of leadership styles that affect the job performance, satisfaction and learning and development of subordinates. Warrick, D.D (1981) cited that there are no doubt variables other than a leader’s style that affect employee performance and development but leadership style plays a significant role and not to be underestimated. An awareness of leadership styles and their consequences are very important because it may either facilitate or inhabit skill development. The major theories on leadership are the traits, leadership styles and contingency theories.

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