Who is a leader?
Leader is a person who has the capacity to influence other people to accomplish a certain task and directs people in an organisation or a group to achieve its objective in a different way that makes it well-integrated. Leader always establish a clear and long term goal, share the information or ideas with others. According to Jago, Good leaders are made not born. Any people who have the desire and willpower can be an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience (Jago, 1982). Leaders tend to possess and exemplify the qualities expected or required in their working groups. Great leaders possess social intelligence, a zest for change, and above all, vision that allows them to set their sights on the "things" that truly merit attention (Scott, 2012). Leaders influence others to reach goals through their approaches to motivation. Various leadership styles
Leadership plays a vital role in the operation of organisation and relating its values and goals with its follower to achieve target. That’s why the leadership theories and measurement of leadership are considered with much importance in business context. The meaning and measurement of leadership is changing along with changing time and changing context. The need of broader leadership theories was realised with changing trends in workforce nature, globalised market, emerging technologies, information system, quality management system (Lievens, et al., 1997). This led companies to formulate new working arrangements and better approach to leadership against old theories based on charismatic traits and behaviours. Hence the concepts of transformation leadership arouse and developed as one of the effective way of management systems. Burns, 1978 was first person to present the idea of transactional and transformation leadership based on what leader offer to the follower for their support (Judge & Piccolo, 2004). Transactional leader offers something in exchange of what they want whereas in contrast, transformational leader motivates others to identify his personal need and work for it and looks after their personalised needs. In contradiction to Burns, Bass (1985) argued that transactional and transformational leadership are not two opposite side of same theory instead are inter-related and both can be best leader in different context. Later in 1991, Bass and Avolio developed the full range of leadership model which consist of both transactional and transformational leadership. Effectiveness and involvement was two basic key to define the model and hence elements of both leadership were arranged against these two terms. Transactional leaders are less involved in production or may actively involve and reward supporter in exchange of good work whereas transformational leaders motivate and raise the level of interest in supporter to achieve organisational goals. Further, transformational leader takes into consideration all the needs of every supporter and exchange values, goals, motivation to greater extend for collective purpose.
Figure 1: The full range leadership model based on Avolio and Bass, 1991. The figure above illustrates four dimension of transactional leadership and four characteristics of transformational leadership against effectiveness on vertical axis and involvement on horizontal axis. The leadership models are arranged in two dimensions so that involvement and effectiveness both are least at initial phase and increases in both dimensions. As described by Bass (1985), transactional leadership fall on the passive and ineffective quadrant whereas transformation leadership fall on the active and effective quadrant. From the figure, it seems transformational leaders are more active and effective in leading an organisation but many researchers argue that these two models compliments each other and...