Notes of Leadership Ppts
Notes of Leadership Ppts
Transactional leadership,
Transactional Leadership :
A transactional leader is one who guides and motivates his follows in the direction of established
goals by clarifying role and task requirements. Transactional leadership involves exchange
relationship between the leader and the followers. Traditional theory of leadership, Ohio State
Studies, Fielder’s model, and PathGoal theory are all transactional in nature. On the basis of his
research findings, Bass concluded that in many instances (such as relying on passive management by
exception), transactional leadership is a prescription for mediocrity and that transformational
leadership leads to superior performance in organisations facing demands for renewal and change.
He suggested that fostering transformational leadership through policies of recruitment, selection,
promotion, training and development will pay off in the health, well-being and effective
performance of today’s organisation. Managers of the future will continue to face the challenge of a
changing their organisations, primarily because of the accelerating trend to position organisations to
be more competitive in a global business environment. Therefore, transformational leadership will
probably get increasing attention in the leadership research by the behavioural scientists.
(ii) Management by Exception (Active) : Watches and searches for deviations from rules and
standards, takes corrective action.
(iii) Management by Exception (Passive) : Intervenes only if standards are not met.
(iv) Laissez Faire : Abdicates responsibilities, avoids making decisions. Transformational Leadership :
Leader who inspires followers to transcend their won self interests for the good of the organisation,
and who is capable of having a profound and extraordinary, effect on his or her followers is known
as transformational leader. For example, Leslie Wexner of the Limited Retail Chain and Jack Welch at
General Electric pay attention to the concerns and developmental needs of individual followers; they
change followers’ awareness of issues by helping them to look at old problems in new ways; and
they are able to excite, arouse and inspire followers to put out extra effort to achieve group goals.
Thus, transformational leaders are the leaders who provide individualised consideration and
intellectual stimulation, and who possess charisma
. Characteristics of Transformational Leaders : (i) Charisma : Provides vision and sense of mission,
instills provide, gains respect and trust. (ii) Inspiration : Communicates high expectations, uses
symbols to focus efforts, and expresses important purposes in simple ways. 81 (iii) Intellectual
Stimulation : Promotes intelligence, rationality, and careful problem solving. (iv) Individualised
Consideration : Give personal attention, treats each employee. Individually, coaches, advices.
Transformational leadership is built on top of transactional leadership (leaders who guide or
motivate their followers in the direction of established goals by clarifying role and task
requirements). It produces levels of subordinate effort and performance that go beyond what would
occur with a transactional approach alone. Moreover, transformational leadership is more than
charisma. “The purely charismatic (Leader) may want followers to adopt the charismatic’s world
view and go no further, the transformational leader who attempt to instill in followers the ability to
question not only established views but eventually those established by the leader”. The evidence
supporting the superiority of transformational leadership over the transactional variety is
overwhelmingly impressive. For instance, a number of studies with U.S. Canadian, and German
military officers found at every level, that transformational leaders were evaluated as more effective
than their transactional counter parts. In summary, the overall evidence indicates that
transformational leadership is more strongly correlated than transactional leadership with low
turnover rates, higher productivity and higher employee satisfaction.