Organizational Behavior & Leadership

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In this exercise, we are asked to determine the leadership type of one executive and two potential executives. We are given three choices, transactional, transformational, or “level 5.” In order to determine which person fits each style, we must understand the characteristics of each type of leadership given.

Transactional leaders are defined as leaders who guide and motivate their employees in the direction of established goals by clarifying role and task requirements. This form of leadership has a defined chain of command. There is no deterring from the rules and regulations set by the leader and the company. Employees are rewarded for a job well done and punished for a poor performance. This type of leadership is effective, but can hinder the employee and the supervisor from reaching their full potential.

Transformational leaders tend to motivate and inspire their followers to create positive changes in a company. They are passionate and energetic, which transcends to their employees. There are four different components to transformational leadership. These are intellectual stimulation, individualized consideration, inspirational motivation and idealized influence. Transformational leaders garner trust, respect and admiration.

Level 5 leaders are defined as being fiercely ambitious and driven, but their ambition is directed towards the success of their company versus themselves. They have a professional will that will generate superb results, have a steadfast resolve to do what needs to be done in order to achieve successful long-term results, and set the standard for building a great company – thus not accepting anything less. They also have a personal humility that exhibits a compelling modesty, acts with quiet and calm determination and channels their ambition into the company.

In the given scenario, Executive A is clearly a Level 5 Leader. This particular leader has put their focus on turning the deteriorating company into a success. Executive...
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