Transformational Leadership
Transformational leadership is a leadership style that can inspire positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic, and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well.
Leadership expert James McGregor Burns introduced the concept of transformational leadership in his book, “Leadership.” He defined transformational leadership as a process where “leaders and their followers raise one another to higher levels of morality and motivation.”
Bernard M. Bass later developed the concept of transformational leadership further. According his book, “Leadership and Performance Beyond Expectations,” this kind of leader:
- Is a model of integrity and fairness.
- Sets clear goals.
- Has high expectations.
- Encourages others.
- Provides support and recognition.
- Stirs the emotions of people.
- Gets people to look beyond their self-interest.
- Inspires people to reach for the improbable.
Components
Bass also suggested that there were four different components of transformational leadership.
- Intellectual Stimulation – Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn.
- Individualized Consideration – Transformational leadership also involves offering support and encouragement to individual followers. In order to foster supportive relationships, transformational leaders keep lines of communication open so that followers feel free to share ideas and so that leaders can offer direct recognition of the unique contributions of each follower.
- Inspirational Motivation – Transformational leaders have a clear vision that they are able to articulate to followers. These leaders are also able to help followers experience the same passion and motivation to fulfill these goals.
- Idealized Influence – The transformational leader serve as a role model for followers. Because followers trust and respect the leader, they emulate this individual and internalize his or her ideals.
Through the strength of their vision and personality, transformational leaders are able to inspire followers to change expectations, perceptions, and motivations to work towards common goals.
Transactional Leadership
The concept of Transactional Leadership is akin to the views of scientific management, which assumes that employees can only be motivated by rewards and punishment. The leader’s own interests and those of the organization are put ahead of everything else. Transactional Leadership uses the exchange principle. In exchange for good and satisfactory work within the agreed time, the manager gives the employee a reward for their performance. This reward can be translated into extra pay, bonuses or working overtime.
The Transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981.
Management By Exception (MBE)
The transactional leader ensures that the conditions are optimal for employees to successfully perform their tasks. The leader also monitors the work closely and takes corrective action when things go wrong. This is why the transactional leader has full control of the entire operation. This leadership style is also referred to as Management By Exception (MBE), in which the leader takes corrective action to prevent mistakes. Management By Exception can be divided into active management or passive management. In active Management By Exception the leader actively monitors the work of the employees and takes immediate corrective actions when something goes wrong in the production process. In passive Management By Exception the leader only intervenes when objectives have not been met or after problems have become serious.
Rewards and punishment
Transactional Leadership delegates two factors to influence employees positively. The most important factor is the reward factor. Rewards influence employees to perform better and an organization will always benefit from this. Using the reward factor, the leader succeeds in getting the employees to do what he wants them to do. He pre-sets objectives and indicates the reward. The main focus is on work. If the employee is unable to finish the task correctly, the transactional leader has the possibility to impose heavy sanctions. He can also impose sanctions when employees display unwanted or negative behaviour. In such a case, the transactional leader will carry out an interim review.
