Transactional and transformational leadership theories in organizational management

Leadership - Central Core of Organizational Success

Effective Leadership in Corporations

you didn't mentioned anything about (For each theory explain how it might benefit a named organisation as well as how it could be incorporated effectively into the organisation.

Theories & Models

The general interest in leadership increased during the early part of the twentieth century. Outstanding leaders combine good strategic substance and effective interpersonal processes to formulate and implement strategies that produce results and sustainable competitive advantage. Leaders may launch enterprises, build organization cultures, win wars, or otherwise change the course of events. They are strategists who seize opportunities others overlook, but they are also passionately concerned with detail all the small, fundamental realities that can make or mar the grandest of plans. Hence, it is a little overwhelming, especially when inundated with numerous theories about leadership such as, X & Y theory, path-goal theory, charismatic, traits theory, Vroom model, and contingency theory, etc. Additionally, numerous leadership styles exist in which a manager can employ, such as laissez faire, transformational, employee-centered, tasks-centered, close supervision, participative, democratic, or autocratic (Elliott 2011).

Task 1

Describe two current leadership theories, identifying the advantages and disadvantages of each. For each theory explain how it might benefit a named organisation as well as how it could be incorporated effectively into the organisation.

Transactional Leadership

Transactional leadership was described by Max Webber in 1947, and then by Bernard Bass in 1981. The transactional leadership theory is widespread and commonly used inorganizations (e.g. military). It is based on transactions or deals made between an employee and an organization or between followers and leaders. A transactional leadership is based on a military like clear chain of command with a 'Carrot and Stick' philosophy. In short, it is a proven method of running an organization wherein, through reward and punishment, things are done! The main motivation behind transactional leadership is taught to be in the self-interest of the subordinate. There is an exchange process that is meant to affect a subordinate's behaviour in a positive way.

Transactional leadership works well in organizations that have a need for absolute and immediate response to authority, and where innovation is not a valued variable. A good example of this theory applied to an industry is the type of country-rebuilding that occurs after a war. The operations of the mercenary army company of Blackwater USA. It is not an accident that Blackwater USA leadership mirrors that of the military, since the company is, in effect, an army.

If one is familiar with Maslow's hierarchy of needs, then one will understand that this transactional leadership theory will work on people, whose needs in the bottom half of the