Research on Different Leadership styles in Organizations

Introduction

Any organization need leaders who can handle complex work, especially in today’s competitive workplace. A true leader should improve the working environment of an organization, helps the organization achieve its goals, co-ordinate the activities of the organization, ensure the safety of workers and relate well with them. A good leader must have traits such as experience, knowledge, patient and high commitment to ensure that an organization runs in the right direction (Ameen et al, 2018). In business organizations a good leader will impact the salesperson positively and ensure that customers are satisfied, hence leaders have a role of motivating the subordinates. Positive leadership skills may be acquired through attending leadership projects and training as well as through experience.

Transactional and transformational are the two common leadership styles that are significant in the performance of organizations. These two leadership styles are linked by the ability of the leaders to change, act as role models and provide challenges to the subordinates. To lighten up the working the moods of the workplace, the leaders, subordinates, need to help one another and ensure every person is motivated and has high morale. (Haddad et al, 2018) The growth of an organization and its leadership are like two sides of a coin, they complement one another. The success of an organization is depended on a leader who has the best leadership skills. This research aims to discuss the two types of leadership, transactional and transformation, the advantages and disadvantages of each leadership style, dimensions of each leadership, and then the two leadership styles will be compared using a table.

Leadership

Leadership is one of the most researched concepts in managing an organization. Leadership is about having exceptional characters that can influence others. A breakthrough was established in the early 1990s when Bass noted that leadership was not only about influencing others but an interaction process that would involve many people. According to Bass leadership entails an association between two or many people from the same group that are involved in the structuring of a similar situation. These people have similar perceptions and expectations. Leadership will occur when an individual modifies other people’s competence and motivation. Most members of an organization show the ability to influence others in one way or the other. In his definition, Adair noted that, leadership is about persuading others to attain defined objectives. It is the leadership that glues different groups, improves their performance and ensures that they work towards similar goals. The ability of an organization to perform at high levels depends mostly on its leadership (Mohamed et al, 2018). Leadership is about following laid methods and procedures and not about performing magic. No one is born a good leader, it is about making the efforts to become one.

Transactional Leadership

Transactional leadership focus on the relationship between leaders and subordinates. The relationship should be designed in a way that has the purpose of benefiting each individual in an organization. This relationship will reciprocate and enable an organization to achieve its goals. (Al-Obthami et al, 2018). The relationship is also effective in providing a conducive working environment, encouraging the juniors and providing a good path towards achieving organizational mission and vision. Transactional leadership is centered on penalties as well as rewards, a penalty is given when a subordinate fail to complete a task within the stipulated time, if another subordinate completes a task within this time, and he/she is given a reward. Transactional leadership stresses on; clarity of organizational working standards, objectives and goals, completion of assignments, as well as the effectiveness of equipment. Transactional leaders are characterized by sticking to the available status quo and resisting any form of changes.

In transactional leadership, employees and the mangers exchanges rewards and targets, this exchange process is important in the motivation of employees. In his explanation, Bass noted that traditional leaders motivate the juniors by using; contingent rewards, actions and enforcing rules (Andersen, 2018). He also observed that transactional leaders are skilled of giving reprimand in case such as poor efforts or shoddy performance during work periods (Andersen, 2018). Before the reward is given, the transactional leader will compare and validate the reward and the degree of performance of the task and then enable the exchange. Rewards are meant to encourage the subordinates to improve their performance. Transactional leadership may be applied to perform a simple transaction in the market, for example, sales of goods and services. In this case, the leader and the subordinates move to the transaction and ensure that they achieve satisfaction. (Al-Shamsi et al, 2018). Transactional leadership is criticized by many people on the basis that it results in a short time relationship between the subordinates and the leaders. This leadership is also faulted for not being able to develop the ideas of the subordinates.

Dimensions that make up Transactional leadership

As earlier noted this leadership style has to dimensions, contingent rewards and management by exceptions (Odumeru et al, 2013). In contingent rewards, a leader gives rewards in exchange of goals that he/she had established. Subordinates get rewards as per the earlier agreements, otherwise, a contingent punishment will be given in case the goal is not achieved. In management by exception, leaders instead support subordinates when they make mistakes. The leaders were already anticipating for these mistakes; this is the case of active management. Leaders can also sacrifice and fix the problem in the organization, passive management.

Advantages of Transactional leadership

Transactional leadership has many advantages; by rewarding the subordinates, they are highly motivated, it develops a clear leadership structure within the organization which eliminates confusion in the chain of command, a clear statement is developed between the leaders and the subordinates on issues to deal with rewards and penalties. This leadership also creates goals that are achievable even at an individual level, transactional leadership reduces operational cost while improving on productivity, it is simple, straight forward and easy to implement.

Disadvantages of Transactional Leadership

Under transactional leadership, violating the strict set rules and regulations may lead to termination of a contract, this leadership is rigid and limits the innovation of subordinates, in this leadership, subordinates are more of followers than leaders, the management gives more focus to the results instead of the rewards, emotions of the subordinates are not considered because this leadership style gives zero value to empathy. Transactional leadership does not motivate workers intrinsically and finally, this type of leadership values efficiency more.

Transformation Leadership

The main points of transformational leadership are the inspiration and spurring subordinates. Employees are inspired to develop leadership skills and become more of leaders than followers. Organizations achieve these by conducting training and projects that improve the aptitudes and capacities of subordinates. Apollo observed that transformational leadership occurs when leaders can uphold the interests of the employees and make them appear beyond their own interests. A previous study carried out by Durga showed a significant connection between the overall performance outcomes of an organization to transformational leadership being executed all through. The study also showed that managers can improve the performance of an organization by often engaging the subordinates. There is also a positive affiliation between this leaders’ performance measures, leadership styles as well as employees’ satisfaction. (Aldholay et al, 2018). In transformational leadership, the leader involves himself/herself directly in handling activities of the organization, as a form of motivating and inspiring the subordinates. This is also a chance for the leaders to enrich their leadership skills and experience. It has been discovered that successful companies had their transformational leadership implemented well as opposed to unsuccessful companies.

Dimensions that make up transformational Leadership

Transformational leadership is made up of the following dimensions; (Odumeru et al, 2013) influence idealism, inspirational motivation, individual consideration and intellectual stimulation. In inspirational motivation, leaders’ behaviors are supposed to inspire and motivate subordinates, they can achieve this by sharing tasks with them. In influence idealism, leaders are expected to become models that are admired by the subordinates. It also consists of confidence and trust. The subordinates can also imitate their leaders. Intellectual stimulation is made of how leaders solve conflicts, how they deal with the psychology of the subordinates and their ability to give the subordinates freedom of expression. This is important in helping the organization achieve its goals. Individual consideration gives priority to teamwork. The needs of each subordinate are considered. This dimension also focuses on individual strengths of the subordinates, (Ameen, 2017).

Advantages of Transformational Leadership

Transformational leadership keep an organization open and ethical, leaders of this style are driven by ethics and the values of the organization. Transformational leadership makes subordinates feel included and engaged, this reduces the turn out cost. A change can be brought in this style when bringing new employees on board. This leadership has been proved to be effective by many leading companies in the world such as Apple, Google and Netflix.

Disadvantages of Transformational Leadership

Transformational leadership tend to overlook small details of the organization and rather focus on the large picture, actions of leaders may be detrimental especially when they take too much risk. In this leadership style, accountability is given to groups, this puts pressure on the members of these groups, when the employees shoulder too much accountability weight they will probably burn out. For this leadership to be successful, it requires continuous communication.

Comparison of Transactional Leadership and Transformational leadership conferring to Odumeru et al, (2013)

i) Differences

Transformational Leadership

Transactional Leadership

Leaders are highly motivated and can satisfy their juniors

Leadership is reciprocal where it gives the organization high productivity and loyalty

Leaders in this style, lack the status quo

Leaders here usually focus on how to maintain the status quo

Leaders involve the subordinates in the planning and executing missions of the organization

Subordinate are not involved, instead the leaders have high confidence in themselves.

This method is suitable for a long term relationship of leaders and their subordinates.

It is convenient for a short term relationship of leaders and employers.

i) Similarities

Both of these leadership styles aims at achieving results but using different techniques. In these techniques leaders and their followers are involved, and they have a common and shared purpose. In both leadership approaches, the motivation of subordinates is considered necessary. Both leadership seeks answers on how to manage groups of subordinates, the solution is found through the use of methods that have been already developed and tested. These methods have been shown to yield positive impacts on the subordinates. (Odumeru et al, 2013). In today’s modern era, these two leadership styles are considered preeminent and highly effective if they are executed properly.

Conclusion

Transformational leadership is better than transactional, this is because transformational leaders can come up with plans that are creative and innovative. They also have a strong correlation with their subordinates, a relationship that results in their satisfaction, decreased rates of attrition and high productivity of the organizations. (Isaac et al, 2017). In essence, transformations leaders develop a vision which is supposed to be adhered to by the subordinates to achieve the goals of the organization. In his research, Dundrum noted that the success of any organization in this technology era is dependent on the transformational leadership style. The findings of this research highlight the need to have a leadership that is based on transformation in many sectors of the economy especially the manufacturing sector. The economy has been affected negatively by the recent COVID-19 pandemic, thus it needs the manufacturing sector which has to have the proper leadership. Further research is recommended to find out the specific effects of the COVID-19 to the manufacturing sector of different countries.

References

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