The transformational leadership style has clear advantages when it comes to promoting growth, innovation and creativity within individuals, teams and an organization as a whole. Employees feel they are encouraged to develop as professionals, growing their base of skills and knowledge. A key part of the overall strategy of a transformational leader is to encourage innovation and creativity in the workplace. The focus on employee development is important to cultivating the future leaders an organization needs, as employees grow into the shoes of their leaders and emulate their style.
Transformational Leadership: While best for creating strategy and fostering organizational change, transformational leadership sometimes lacks the attention to detail, as these leaders are less concerned about daily workflow and processes.
It also relies on having the type of leader who can sustain both a great deal of motivation and passion for a long period of time. If there is anything that the year taught organizational leaders, it is that change is happening faster than ever, and those efficient processes and set goals can be upended in an instant.
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Leadership Effectiveness Both transactional and transformational leadership are effective in achieving intended results. Promoting Growth, Innovation and Creativity The transformational leadership style has clear advantages when it comes to promoting growth, innovation and creativity within individuals, teams and an organization as a whole.
These exchanges are difficult to specify and very difficult to measure since they revolve around somewhat abstract personal relationships. Transactional leadership revolves around low-level exchanges, whereas transformational leadership is the opposite and focuses on high-level exchanges.
Most seem to consider, as mentioned above, transactional and transformational leadership to be polar opposites, i. However, the modern FRLM states that both styles could be used in the same setting by the same leader. This would mean that low and high-level exchanges can be taking place at the same time. The transformational leader, focusing on the high-level exchanges, would likely motivate and inspire his or her team members better, resulting in a better long-term outcome.
This would require more investment in terms of time to build relationships of course. I do not see the above differentiation between types of exchange as proof that both styles can be used at the same time. Instead, I see the low-level exchanges including payment of a salary as the basics of an employment arrangement, often required by law.
It is basically the bottom of the Maslow hierarchy of needs and is essential for any employment. Without this, there is no employment. These exchanges are management aspects in my opinion.
The high-level exchanges come on top of the low-level exchanges and here is where management becomes leadership. I wish the transformational business leader who only uses high-level exchanges good luck since I think it will be difficult to get anywhere without paying salaries to the employees. The two styles can of course be used in different parts of the same organization, such as different functions and departments, but to me, this is not using both styles at the same time, rather using them selectively.
A brief example could be a highly innovative tech product company. The development, marketing, design, and sales department might be led by transformational leadership , but the assembly shop and the warehouses might be run with a transactional style.
In the latter case, employees are likely to care less about the overall vision and instead want to get through their day. Furthermore, assembly and warehousing are areas with concrete and separable tasks that create a repetitive process, enabling measurement and a pay structure connected to performance.
However, I guess the leaders of warehousing and assembly are transactional leaders, and the other department heads are hopefully transformational leaders. Transactional leaders are concerned about the status quo, while transformational leaders are more change-oriented. Differentiate between transactional leaders and transformational leaders in a full-range approach, particularly from a behavioral perspective.
Leadership can be described as transactional or transformational. Transactional leaders focuses on the role of supervision, organization, and group performance. They are concerned about the status quo and day-to-day progress toward goals. Transformational leaders work to enhance the motivation and engagement of followers by directing their behavior toward a shared vision. While transactional leadership operates within existing boundaries of processes, structures, and goals, transformational leadership challenges the current state and is change-oriented.
Transactional leadership promotes compliance with existing organizational goals and performance expectations through supervision and the use of rewards and punishments. Transactional leaders are task- and outcome-oriented. Especially effective under strict time and resource constraints and in highly-specified projects, this approach adheres to the status quo and employs a form of management that pays close attention to how employees perform their tasks.
A transformational approach focuses on individual strengths and weaknesses of employees and on enhancing their capabilities and their commitment to organizational goals, often by seeking their buy-in for decisions. Transactional leaders focus on performance, promote success with rewards and punishments, and maintain compliance with organizational norms.
Identify the different behaviors attributed to transactional leaders and how they can motivate an organization. Transactional leaders focus on managing and supervising their employees and on facilitating group performance.
The role of a transactional leader is primarily passive, in that it sets policy and assessment criteria and then intervenes only in the event of performance problems or needs for exceptions. Transactional leaders seek to maintain compliance within existing goals and expectations and the current organizational culture. They are extrinsic motivators who encourage success through the use of rewards and punishment. Benchmarking Measures Performance : Results are the paramount concern to a transactional leader.
Performance ratings can be used to measure results. Transactional leadership satisfies lower-level needs but addresses those at a high level only to a limited degree. Transactional leadership can be very effective in the right settings.
Coaches of sports teams are a good example of appropriate transactional leadership. The rules for a sports team allow for little flexibility, and adherence to organizational norms is key; even so, effective coaches can motivate their team members to play and win, even at risk to themselves. Transformational leaders exhibit individualized consideration, intellectual stimulation, inspirational motivation, and idealized influence. Transformational leaders challenge followers with an attractive vision and tie that vision to a strategy for its achievement.
Transformational leadership comprises four types of behavior:. Leading the team : Transformational leaders inspire their employees to do more. This behavior can include the following actions:.
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