Leadership and Strategy

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Discuss the role of leadership in strategizing:

Clegg mentions the difference between the two distinct behaviors for transformational and transactional in leadership. Transformational leadership is charismatic, inspirational, intellectually stimulating and individually considerate (pg. 223). Transactional leadership, on the other hand, motives individuals through “contingent-reward exchanges” and active management-by-exception (pg. 223).

Transformational Leadership

Transformational leadership is a type of leadership style that leads to positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well. The concept of transformational leadership was initially introduced by leadership expert and presidential biographer James MacGregor Burns. According to Burns, transformational leadership can be seen when "leaders and followers make each other to advance to a higher level of moral and motivation." Through the strength of their vision and personality, transformational leaders are able to inspire followers to change expectations, perceptions and motivations to work towards common goals.

Later, researcher Bernard M. Bass expanded upon Burns original ideas to develop what is today referred to as Bass’ Transformational Leadership Theory. According to Bass, transformational leadership can be defined based on the impact that it has on followers. Transformational leaders, Bass suggested, garner trust, respect and admiration from their followers (pg. 223).

Bass also suggested that there were four different components of transformational leadership.

• Intellectual Stimulation – Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new...
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