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Select an organisations and
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Select an organisations and analyse their management style detailing the advantages and disadvantages of the leader style
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Advantages and Disadvantages
The transactional leadership style that FedEx emphasizes has several advantages. First, it facilitates day-to-day excellence in operations. This emphasis on short-term operational excellence allows the company to execute millions of individual transactions each day with a low error rate (MindTools.com, 2010). The transactional leadership style also has the benefit of allowing the firm to improve its profitability over time by making efficiency improvements. This has value for firms such as FedEx that are operating in industries that are based on large volumes of low-value transactions, in which minor improvements can lead to significant cost savings when spread out over millions of transactions. In addition, this style of leadership is ideal for companies that are in mature industries, where growth is slow and competition strong. In such industries, success is usually defined by tight cost control rather than by growth initiatives or new product introductions, and this fits the current situation at FedEx
There are some disadvantages to the transactional leadership style, however. This style is often considered to be inferior in times of crisis when strong transformation of the business is required. Should FedExs core business move beyond the cash cow stage of maturity, the company
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