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Course
Psychology with a specialisation in business
Institution
The University Of Strathclyde (UOS)
Book
A Casebook of Transformational and Transactional Leadership
Evaluated the strengths and weaknesses of Multi-factor (Transformational) Leadership theory then carried out the MLQ test and gave reflection on leadership development
multi factor transformational leadership theory and mlq
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Evaluate the strengths and weaknesses of Multi-factor (Transformational) Leadership theory (40
marks, around 800 words).
The Multi-Factor (Transformational) Leadership theory is ‘concerned with improving the
performance of followers and developing followers to their fullest potential.’ 1 (Bass and Avolio
1993). Bass developed The MLQ (Multi Factor Leadership Questionnaire) with the belief that leaders
need to have a blend of transformational qualities and transactional qualities to be successful. In his
MLQ there are four transformational leadership factors, two transactional leadership factors and a
laissez-faire style is included however Bass does not recognise it as a leadership factor. In this
instance these are measured using seventy questions. Each question is rated and the total score for a
factor is then divided by ten. The answer to each is then allocated a percentile using UK norms.
The first Transformational Leadership factor is Individualised Consideration where a good social
interaction with colleagues provides knowledge on each of their strengths allowing appropriate
allocation of duties. The leader priorities equal treatment, such as ensuring work opportunities are
available to all and providing equal consideration.
Similarly in Intellectual Stimulation a leader also has good personal interaction with subordinates and
can nurture their abilities, encouraging creative thinking and problem solving. This leader can help
discard stagnant thinking and generate new ideas to achieve and progress.
The importance on the interaction and communication of leaders continues with the Inspirational
Motivation leader who can effectively relay the goals, vision, and overall organisational objective.
They bolster employee worth enabling them to see how their individual part in the organisation is
invaluable regarding its aims.
Lastly in Transformational Leadership is Idealised Influence. In this instance the leader is a role
model that subordinates hold in high regard. They put the needs of others above their own personal
gain and are admired, respected, and trusted.
The first Transactional leadership style is Management by Exception. Management by Exception has
two elements, one is ‘Active’ and the other ‘Passive’. In Active Management by Exception the leader
takes firm action in correcting mistakes and micromanages tasks to prevent further incidents. On the
other hand, in Passive Management by Exception the leader waits for mistakes to occur before dealing
with them and does not put any methods of prevention in place.
In the second Transactional leadership style, Contingent Reward, the Leader sets clarification of tasks
and objectives. They provide rewards for subordinates that achieve well and chastise low
performance. They might not treat each employee as an individual or put supports in place such as
further training. If an employee does not achieve the set aims the Contingent Reward leader is likely
to punish them.
The Laissez-Faire style leaves subordinates to act as they like with no influence. This leader is not
interested in what tasks are completed or when they are done. They do not get involved with
employees’ ways of doing things which might leave them misguided and unsure as to what they are
meant to be doing. This could lead to a lot of procrastination or a wrong unsafe way of doing things.
This is the least appealing leadership style in MLQ.
In summary, The MLQ, highlights that A Transformational leader can motivate staff, bring about
change, encourage employee development, problem solve, improve communication, and provide good
ethics to promote trust. On the other hand, in a large organisation transformational leadership can
1
Improving Organisational Effectiveness through Transformational Leadership (1993), Bernard M. Bass, Bruce
J. Avolio
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