Transformation or Transactional Leadership, a better concept for contemporary organisation

Topics: Leadership, Management, Organization Pages: 16 (2553 words) Published: May 31, 2014

Transformation or Transactional Leadership, a better concept for contemporary organisation (Organisational Behaviour and Relationship Management)
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By: Antony Pratap Ekambaram
Subject & code: OBRM
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Word Count: 2206
(24.04.2014)

Executive Summary
On understanding the requirement of a contemporary organisation and its high performance values, it is evident that the organisation needs to be involved constantly in change management and have a vision for diversity within its organisation and set continuous improving goals to be successful. It is the leadership style of the organisation which reflects on the success of the organisation. If the organisation requires high performance, change management, diversity, vision and excellent goal settings, then it is the leader who will have to cultivate these attributes within the entire organisation. A Transformational leader is required to transform an organisation into a high performing contemporary organisation.

Page i
Table of Contents
Executive Summary ……………………………………………………………………………………………………….i Table of Contents ……………………………………..………………………………………………………………….ii 1.0 Introduction …………..………………………………………………………………………………………………1 2.0 A Contemporary Organisation ……………………………………………………………………………….2 3.0 Transactional Leadership ……………………………………………………………………………………….3 3.1 Benefits of Transactional Leadership Style ………………………………………………………..3 3.1.1 Simple and Low Cost …………………………………………………………………………………3 3.1.2 Clear and Easy to Follow …………………………………………………………………………..3 3.1.3 Powerful Motivator ………………………………………………………………………………….3 3.1.4 Get Results Fast ……………………………………………………………………………………….3 3.1.5 Management by Exception (active) .…………………………………………………………3 3.2 Consequences of Transactional Leadership Style …………………………………………….4 3.2.1 Management by Exceptions (passive) ………………………………………………………4 3.2.2 Laissez-Faire …………………………………………………………………………………………….4 4.0 Transformational Leadership …………………………………………………………………………………5 4.1 Dimensions of Transformational Leadership …………………………………………………….5 4.1.1 Charismatic ………………………………………………………………………………………………5 4.1.2 Inspirational …………………………………………………………………………………………….5 4.1.3 Intellectual Stimulation ……………………………………………………………………………5 4.1.4 Individualized Consideration ……………………………………………………………………5 4.2 Consequences of Transformational Leadership Style ……………………………………….6 5.0 My Association with Jack and Jeff ………………………………………………………………………….7 5.1 Jack as a Transactional Leader ……………………………………………….………………………..7 5.2 The impact of Jack’s Leadership Style ……………………………………………………………….8 5.3 Jeff as a Transformational leader ………………………………………….………………………….8 5.4 The impact of Jeff’s Leadership Style ………………………………………………………………..9 6.0 Conclusion and Recommendation .………………………………………………….…………………….10 7.0 References ……………………………………………………………………………………….……………………11 Page ii

1.0 Introduction.
Organisations today are facing constant challenges to produce greater results amidst the ever growing competitors, which create very demanding environment, constantly upgrading and advancing on factors that influence their market status. Amidst this challenging environment the scope of overseeing key issues is at larger risk. This concern will always be directed to the leaders of that organisation. (Pettinger, 2001) Leadership has always been very crucial to the success of any organisation, as managers the need to deliver management decisions and simultaneously get the best of their direct underlings, is an attribute a manager needs to exhibit. There are two major leadership concepts that have been spoken and compared in most leadership literature available today, on which is the more sort after for a contemporary organisation. Transformational and transactional leadership concepts are a form of behavioural evaluation of a leader. They are not two totally opposite ideologies; they actually complement each other, and TFL builds more performance oriented followers which TSL cannot do by itself....

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