Leadership is more about the organization and less about the individual. With effective leadership, an organization can grow and achieve their potential. If any organization has a leader who is self-centered and does not have a vision, the organization will suffer in the long run. There is no denying the fact that leadership plays a crucial role in any organization and will either build the business or break the business. Out of all the different leadership styles, there are two styles which dominate the current corporate environment. One is transactional leadership and the other is transformational leadership.
What is transactional leadership?
Transactional leaders can be described as someone who values structure and order, which is very similar to a military commander. They like everything predefined and well structured. They are not open to change and do not think out of the box. You will not find them in creative work spaces but will see them in more traditional settings with large corporations. Some of their traits include inflexibility, not welcome to change, left brained, detail oriented, loves to follow rules and thrives in efficiency. The leaders are not proactive; they intend to make sure everything goes as planned. Transactional leaders are not able to take quick and prompt decisions regarding the organization. They will not lead the change and will not be open to accepting any change in the structure. These leaders are welcome in organizations but they do not add value to the organization. They help follow the structure and plan as it is, they will not give an input and provide different ways of improving the efficiency of the employees.
How do transactional leaders work?
Transactional leadership is a form of leadership which focuses on supervision, performance and organization. It is a style where leaders promote compliance through rewards and punishments. They look to keep things as it is but pay attention to follower’s work in order to find faults or deviations. The followers are motivated through rewards or punished in case of faults. This keeps them attentive all the time. This leadership is ideal for crisis and emergency situations as well as for projects that are supposed to be carried out in a particular manner. The leaders bring minimal compliance from followers and are extrinsic motivators. They accept goals and culture of the organization and work to achieve the same. These leaders are directive and action oriented. The leaders are willing to work within the existing system in an organization and strive to attain the goals with the followers. They have a habit of thinking inside the box when solving problems. These leaders do not attempt to change anything in the organization; they only try to help the organization achieve their long term goals. The leadership is passive and the behavior is associated by maintaining the status quo and by simply rewarding employees who perform exceptionally well. The leader intervenes when employees do not achieve their performance levels and take corrective action to improve their performance. They motivate employees through speech and bring out the best from each of them. Transactional leadership has been noticed across various organizations in the country.
What is transformational leadership?
Transformational leadership is the need of the hour. Organizations are always on the lookout for leaders who can help them achieve their long term goals. It is a leadership style where a leader works with subordinates in order to identify the change needed in the organization and creates a vision to guide the change through inspiration and motivation. The leader has the support from the subordinates and easily motivates them. The subordinates are inspired by the leaders and look up to him. Every organization has been able to achieve their long term goals with the right leader leading them. The leader simply does not accept the current circumstances; he strives to bring about a change through different means and works to take the business to its potential. These leaders add value to the organization and bring a positive change in the way the subordinates function. Transactional leaders lead by example, they take risks and have a clear vision. They are ready to disrupt the traditional structure and values in order to introduce new values and ways of doing business.
How do transformational leaders work?
Transformational leaders lead by example. They motivate the employees through their leadership and they have all the support from the subordinates. The leaders are ready to take risks and transform the entire organization. The leaders play a crucial role in developing a learning climate in the company; they empower employees in the pursuit of organizational goals and motivate them to work towards a common goal. The leaders actively respond to changes in the external environment and create changes in the business environment to build a workplace with is sustainable and motivated. Large companies are led by transformational leaders who have a vision to take the company to new heights. They take risks and motivate their team to work towards a new goal. Transformational leadership can contribute to organizations by inspiring their followers and motivating to improve their performance. It helps improve the effective of leadership in an organization and takes the organization to new heights.
These two leadership styles exist in every sector. While there are organizations that strive to work with transformational leaders, they are unable to find one. Transactional leaders only lead the subordinates for the sake of it. They do not improve anything in the organization and fail to motivate individuals to work towards the goals. Transformational leaders are hard to find, they are self-driven individuals who are only concerned about the progress of the organization and ensure that they motivate every individual to perform with increased efficiency. https://arielle.com.au/transformational-leadership/ provides examples of leadership and how it can benefit organizations in 2018. In order to reach the top, it is important to accept change and grow according to the same. Only transformational leaders can bring about change in an entire organization.
