a) Explain transformational leadership and transactional leadership.
Transformational Leadership is a form a leadership in which a leader tends to lead his
or her followers from the front. The leader encourages and motivates its employees to
shape and achieve extraordinary results. This is achieved by establishing the aims of
each individual and helping them to move towards their goals at a faster pace.
Transformational leaders boost employee morale and confidence by motivating them
and by assigning them challenging jobs and allowing them to take authority over their
decisions of work.
Components of Transformational Leadership:
1. Idealised Influence: The leader can only be influential when he practises what
he preaches. Followers tend to emulate their leaders when they act as role
models. They put forward the interests of the organisation in front of their
personal goals.
2. Intellectual Stimulation: The leaders encourage their employees to think out of
the box for challenges faced daily. These leaders challenge assumptions and
take risks in undertaking new ways of work. They favour effective ways of
doing work rather than primitive and orthodox techniques. They identify
followers through creativity and innovation.
3. Inspirational Motivation: Transformational leaders want their followers two
vision high ideals, and they motivate their followers to work hard for achieving
these aims. These leaders are optimistic and small failures do not shake their
confidence in achieving their goals. They encourage followers to put more
effort in their work and boost the confidence of the employees by having a
positive mindset.
4. Individualised Consideration: These leaders pay attention to individual
interests and help the employees to put forward their goals and how to achieve
them. These leaders consider the concerns and needs of each follower.
, In Transactional Leadership the leader offers its followers rewards and punishment for
the tasks to be achieved in an organisation. For example, if a follower makes a
mistake, he is punished and if he does something what is desired of him then he is
rewarded for it. The leader helps the employees to achieve their individual interests
first and then the goals of the organisation. This form of leadership is more of a
management of an organisation. It focuses more on results and performance rather
than relationships between people. People are expected to perform their work
efficiently by conforming to the rules and regulations of the organisation, the
employees are not motivated and out of the box thinking is not encouraged.
This style of leadership is insufficient but not harmful in developing leadership
potential.
Two dimensions of transactional leadership are:
1.Active Management by Exception: Transactional supervise the work of their
followers, check for deviations from regulations and plan and take corrective actions
to prevent deviations from plans.
2.Passive Management by Exception: Transactional Leaders act only when the results
are different from the planned or aimed results. When the standard performance is not
met, transactional leaders come in action.
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