In The 21st Century

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In the 21st century, Caribbean organizations require leaders who are transformational rather than transactional because the business environment is competitive now more than ever before. Transactional leadership provides rewards for tasks being completed which is not as effective when dealing with today's organizations because it maintains the normal flow of operations. Transformational leadership involves going beyond exchanging rewards for tasks completed. It focuses on the leader acting as a role model, facilitating innovation, being inspirational so as to encourage other indivduals to go the extra mile. Skills of leaders could be acquired by individuals in transformational leadership which produces growth both on an individual and organizational level which works to the organization's advantage as it gets more out of an individual.

Transformational leaders may be defined as those who have a strong vision and a sense of mission for the company, gives personal attention, coaches and often serve as mentors. These leaders are able to inspire and motivate their followers to go beyond their own self-interests in order to achieve the goals of the organization.
The traditional management function of leading has been called transactional leadership. Transactional leaders guide and motivate their followers to achieve the established goals.
In the 21st century Caribbean both transformational and transactional styles of leadership are required for organizations to be successful. The style of leadership should be dependent on the type and size of organization, the goals of the organization, the competition within the specific industry and the mindset of the subordinates. The focus of all organizations is to achieve their goals. Transactional leaders make subordinates aware of their roles and tasks and ensure that goals are met without deviations. This is achieved though rewards but may not encourage innovation. Transactional leaders also strive for stability and

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