Introduction
Many leadership theories and ideas have come up through organizations and leadership scholars. While there may not be a common definition of leadership, the different styles allow for leaders to better equip themselves for sustainable future success. Gary Yukl (2012) stated, “The essence of leadership in organizations is influencing and facilitating individual and collective efforts to accomplish shared objectives.” Two of these styles are transformational and traditional or transactional leadership.
Studies of Transformational and Transactional Leadership Theory
The description of the transformational leader by Malos (2012) asserts a value and active participation in intellectual stimulation, individualized consideration, inspirational motivation, and idealized influence. This plays into the new age leader, seeing employees and players as an asset and important role to the sustained success. Intellectual stimulation occurs when the leaders challenge the status quo, think outside the box and take calculated risks. These risks include the opinion of the follower, whose creativity and autonomy is sparked, as encouragement of independent thinking becomes part of the culture. Learning situations are valued and used even in unexpected situations that arise. The followers are encouraged to find answers for themselves, using critical thinking and problem-solving skills. Individualized consideration occurs when the leader attends to individual needs and concerns. The leader is supportive through challenges and helps offer and brainstorm solutions. The leader listens before asking or demanding. The leader leads the team in celebrating small wins among individual team members. While these responses and tasks raise engagement, motivation to reach personal and professional goals rises. Inspirational motivation occurs when the organizational vision glues the personal goals of team members together in a quest to reach the highest levels of organizational effectiveness. Leaders who inspire personal and team motivation do so by example, setting present and future goals, reaching set goals, and showing the followers the ability to find meaning in every task they do. If followers understand the why behind a task or goal, an increase of action will occur. Passion and purpose cannot be faked or forged, and the motivational leader recognizes this. They are optimistic during times of prosper and doubt. Idealized influence promotes high ethical behavior, leading to an increase in pride, trust, and accountability.
Transformational leadership theory has a balance between the leader and the follower. The best interests of both the leader and the follower are taken into consideration when following this model. The benefit of involving the followers in the decision-making process is centered on employee engagement. Active participation creates a sense of accountability and responsibility in each individual member of the team. The concept of accountability in leadership has received increased attention in recent years as leadership models have moved from positions of authority to positions of transformation (Burian & Pieffer, 2014). Transformational leadership takes individual goals and implements them into the process of reaching team goals. By allowing employees and players to set and reach goals, individual creativity is encouraged and sparked on a personal basis.
Transactional leadership starts with the idea that team members agree to obey their leader when they accept a job or become part of the team. The transaction usually involves the organization paying team members in return for their effort and compliance on a short-term task. The leader has a right to punish team members if their work doesn’t meet an appropriate standard. (Mind Tools Editorial Team. (2016).
The difference in the old school way of thinking vs. the new school is the difference between transactional and transformational leadership. Transactional leadership can potential disengage employees who feel they aren’t valued as an individual, but rather as another number to the company. Transactional leadership gets results centered on fear of losing a job if requirements and expectations aren’t met. Rather than coaching and mentoring employees, transactional leaders encourage selling and raising the organizations reputation.
Traditional or Transactional Leadership Theory’s Influence on Leaders and Followers
According to Burns, transforming leadership is a process in which “leaders and followers help each other to advance to a higher level of morale and motivation”. The influence this has on leaders and followers tends to be positive on both ends of the spectrum. Transactional leadership and traditional leadership may be looked at through the lens of the leader vs. the manager. A manager may not necessarily be a leader, but the leader is a manager. Leaders understand their employees as individuals with personal desires that can be combined into creating and reaching a team vision. This is an influence that the transactional leader has on his or her followers. When leaders influence their followers in positive ways, that positive influence will come back to the leader in their individual pursuit of excellence, in turn helping them lead their team. It’s a cycle that doesn’t end.
Transformative leaders use authenticity and transparency to help them in their development of successful relationships. The influence of the transformational leader is the belief that is passed down that every individual has the potential for leadership. One leader can enable another follower to become a future leader, creating more success and leadership competence. Through relationship building, trust is developed at a deeper level. Successful transformational leaders build trust first, which is a delicate process. Trust takes time to build and sustain, but can be lost in a matter of seconds. Trust leads to accountability and a sense of responsibility in individual work. This leadership style engages in the realm of vision and growth, it helps followers change through the use of inspiration and positive expectations (Glanz, 2007).
Managers, or for this comparison, the transactional leaders, miss out on this positive leading cycle because value is not shared or created. The influence then becomes negative for both the leader and the follower, with a lack of positive and effective reciprocation. The overall organizational vision is not sustained or grasped by the followers.
Conclusion
Studies on transformational and transactional leadership provide a look into the strengths and weaknesses of both leadership styles. Positive and negative influences are brought on by both styles, with positivity repercussions leaning more towards transformational leadership and negative repercussions learning more towards transactional leadership. While each style is unique, the unique responses from those being led must be taken into consideration.
References
Burns, J.M, (1978), Leadership, N.Y, Harper and Row.
Malos, R. (2012). The most important leadership theories. Annals of Eftimie Murgu University Resita, Fascicle II, Economic Studies, 413-420.
Mind Tools Editorial Team. (2016). Leadership Styles. Retrieved October 3, 2016, from Mindtools, https://www.mindtools.com/pages/article/newLDR_84.htm
Yukl, G. (2012). Effective leadership behavior: What we know and what questions need more attention. Academy Of Management Perspectives, 26(4), 66–85. doi:10.5465/amp.2012.0088
Glanz, J. (2007). On vulnerability and transformative leadership: an imperative for leaders of supervision. International Journal of Leadership in Education , 115-135.
Burian, P. & Pieffer, M. A. (2014). Leadership systems model: An integration of people, process, and behaviors in A dynamic and evolving environment. International Journal of Management & Information Systems (Online), 18(4), 261-n/a. Retrieved from https://csuglobal.idm.oclc.org/login?url=http://search.proquest.com.csuglobal.idm.oclc.org/docview/1613025895?accountid=38569