Current Leadership Therioes Identifying the Advantages and Disadvantages of Each

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Describe two current leadership theories identifying the advantages and disadvantages of each. For each theory explain how it could be Incorporated into and benefit strategic decisions in your own organisation. (b) How could you change management and leadership in your organisation? To improve: efficiency; quality; innovation; HRM?

[AC2.1] [AC2.2]

(a)Two examples of current leadership theories are transformational and transactional leadership. Transformational leadership theory
The concept of transformational leadership was first introduced by leadership expert James McGregor Burns and later expanded by researcher Bernard M. Bass. Developed initially for political leaders by James McGregor Burns in 1978 , it was eagerly adopted for business leadership.

Burns viewed, transformational leadership as when a” leader and follower make each other to advance to a higher level of morals 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.

Bernard M. Bass expanded upon Burn’s original ideas to develop what is now referred to as Bass’s transformational leadership theory. According to Bass, transformational leadership can be defined based on the impact that it has on the followers. To Bass, transformational leaders gather trust, respect and administration from their followers. There are four components of transformational leadership.

1.Intellectual Stimulation
2.Individualized Consideration
3.Inspirational Motivation
4.Idealized Influence

Advantages of transformational leadership
Transformational leadership is a more human leadership theory compared to the transactional theory it is based on inspiring employees to do good work through examples and the force of a leaders personality. This theory believes that people rise higher through positive motivation than negative motivation. •Transformational leadership creates an enthusiastic work atmosphere and inspires the workers to meet their potentials in the context of the work that needs to be done to achieve the organisations vision and mission. •The fact that people work through motivation guarantees higher output and efficiency. •This style of leadership naturally develops future leaders from the lot of followers. •The employees will work for the leader even if the monetary and other benefits offered are lesser as the will be inspired by his vision.

Disadvantages of transformational leadership
This theory places to much emphasis on the ability the leader to inspire the work force. Leaders of organisation may not always have the force of character to achieve this. Transactional leadership

The transactional leadership was first described by Max Webber in 1947, and then by Bernard Bass in 1981. The transactional leadership style developed by Bass is based on the hypothesis that followers are motivated through a system of rewards and punishment. The main motivation behind transactional leadership is taught to be in the self interest of the subordinate. In this type of leadership there is an exchange process that is meant to affect a subordinate’s behaviour in a positive way. Bosses in a business situation, for example, often implement salary increase for employees who meet all their work requirements. Traditional leadership is based incontinency, in that reward or punishment is contingent upon performance. Despite much research that highlights limitations; transactional leadership is still a popular approach with many managers. Advantages of transactional leadership

This method works in most of the cases, where it's applied, provided the employees are motivated by rewards. It is a proven compliance strategy, which works best if the top most leader in the hierarchy is capable of making most of the important decisions and is a strong personality

Disadvantages of transactional...
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