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Leadership
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Different types of leadership
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TRANSFORMATIONAL LEADERSHIPWhere a person does the following: Creates an inspiring vision of the future. Motivates and inspires people to engage with
that vision. Manages delivery of the vision. Coaches and builds a team, so that it is more effective at achieving the vision.
Transformational Leadership will bring together the skills needed to do these things.
TRANSACTIONAL LEADERSHIP
Where a leader motivates and directs followers by appealing to their own self-interest. Motivation through a system of
rewards and punishment If a subordinate does what is asked, a reward will follow, and if not a punishment. Goals linked to
rewards. Work of their subordinates actively watched. They intervene only when standards are not met or when the
performance doesn’t meet expectations. It supplies an environment where subordinates get many opportunities to make
decisions. However, the leader abdicates responsibilities and avoids making decisions; therefore, the team often lacks
direction. Assumptions Made by a Transactional Leader Employees are only motivated by reward and punishment.
The subordinates have to obey the orders of the superior. The subordinates are not self-motivated. They have to be closely
monitored and controlled to get the work done from them.
Transactional leadership
Leadership is reactive
Works within the organizational culture
Transactional leaders make employees achieve goals through rewards and punishment
Motivates followers by appealing to their own self-interest
Transactional style of leadership does not always develop the largest team potential; it can lead to the creation of an
environment permeated by position, power, perks, and politics.
Transformational Leadership
Leadership is proactive
Work to change the organizational culture by implementing new ideas
Transformational leaders motivate and empower employees to achieve goals by appealing to higher ideals and moral
values
Motivates followers by encouraging them to put their own interests behind those of the team or unit
Research shows that groups led by transformational leaders have higher levels of performance and satisfaction than
groups led by other types of leaders
People-orientated Leadership
Each voice is equally important but usually a ‘leader’ gets the final say.
Puts the team and its well-being first.
Follows the idea that workers are the most important asset; if they’re happy, everything else will follow.
ADVANTAGES of People-orientated leadership
An inclusive atmosphere-Team members feel like a valued, integral part of the team because they can see their voice
counts.
Insight into employee mood-better understanding of the mood of its workers: allowing time to solve issues before they
snowball into bigger ones.
Engaged employees-Team members feel more aligned to the UPS goals because they’ve helped shape them
A motivation boost-Employees who feel valued and listened to are more likely to feel motivated
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