Transactional Leadership and Transformational Leadership
Transactional leadership style is a leadership style that uses group performance, organization, and supervision to get results. It is also called managerial leadership. This leadership style is focused on getting specific tasks done and the leader may use punishments and rewards as motivational tools. A good structure is highly valued in such a scenario as is highly apparent in situations such as the military and big companies where the leadership style is widely used (Cherry, 2018).
Transactional leadership is not an optimal leadership style where innovation and creativity are highly required. Nonetheless, in environments where the completion of tasks requires specific linear processes, a transactional leader is likely to excel. The leadership style is therefore very useful for large big organizations with well-defined processes. The military, policing, and sports franchises also have leaders with transactional leadership qualities (Cherry, 2018).
A great example of a transactional leader is Bill Gates. Bill Gates is a well known American businessman who was born in 1955. He founded Microsoft with his friend Paul Allen in 1978. Microsoft grew fast and grossed $2.5 million dollars 3 years after it was founded. At this time, Bill Gates was only 23 years old. The company went on to launch Windows in 1985. Windows became a transformational product in the computing world and brought Bill Gates and Microsoft’s other shareholders tremendous wealth. The success of Windows can be attributed to Bill Gate’s ability to successfully execute a transactional leadership style. He would supervise product teams by visiting their stations and would ask very specific questions that ensured that the teams always knew the exact results the company required them to produce and that they were always on track (Cherry, 2018).
Transformational leadership as a concept was formally introduced in 1978 by James McGregor Burns in a book titled ‘Leadership’. Transformational leadership has existed for the entirety of human history. However small the teams they lead were, past transformational leaders helped create solutions that helped man overcome some of the challenges he was facing at the time. In the current work environment, transformational leaders help their teams define their challenges, identify the resources they need and the resources available, inspire visions, and motivate their team members to perform at their best. This...
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