Leadership Paradigms in Modern-Day Companies

Leadership paradigms in modern-day companies have evolved to adhere to the philosophy of human relations held generally by human beings. The autocratic style has for example long been outdated by more approachable ideals such as transactional and transformational leadership paradigms. The transactional-transformational paradigm then includes behaviors that build relationships with peers and subordinates. This is done in a way that inspires trust and respect. Because these are issues particularly important to the management position, the transactional-transformational paradigm has had considerable influence in how management is currently practiced.

There are several philosophies and practices deemed particularly important in the transactional-transformational paradigm. These have a direct impact on management styles. A leader is for example to show conviction, and generate trust by taking a strong position in difficult issues. Purpose, commitment and strong ethics are also seen as vitally important to the management paradigm.

The transactional-transformational paradigm has been implemented as the most effective for management decisions, as leaders and followers become a team by means of negotiation. The role of leaders is to inspire trust and respect rather than fear. They become role models in order to realize the vision that the company draws up for the future. Followers are then challenged with keeping up the high standards required to fulfill the vision.

Another important modern issue is question old assumptions, traditions and beliefs. This has become a paradigm not only of management, but of the world in general. There is an increasing recognition of the importance of recognizing beliefs and traditions outside of one's own, and to develop new beliefs and traditions according to what historically has proved to work most effectively. This entails the evolution and the development of the most effective methods and thought patterns.

Because this evolution is such an important concept socially, it is also an important concept in business. Customers expect a business to grow and develop according to their needs. This is only accomplished by flexibility and an ability to change, along with the cooperation of team members. Good leadership will then incorporate all these qualities.

Transactionally, leaders work with their followers rather than mandating the rules and regulations of the company. Instead there is a respect and consideration for each individual within the company. Each individual's needs, abilities and aspirations are taken into account to ensure that each person enjoys work satisfaction. Entities such as labor unions and other committees focused on the needs of the worker have been instated as part of this paradigm.

The transactional-functional paradigm of management thus incorporates all the social ideals that have evolved in society over the last century. Leadership has changed from autocratic and traditional to a more flexible paradigm. It is therefore clear that management has evolved to accommodate the society within which companies function.