Different organizations follow different leadership styles to promote more effectiveness. The leadership styles may affect the member’s motivation so the managers must ensure to apply the right motivational theory.
P4)
Transactional leadership is the style that the employee is hired accepting to receive orders by the leader. The organization will pay the member due to the efforts however the leader is free to punish the employee if the standards are not met. Another thing is that in this style the responsibilities are very clear and who is willing to grow tend to work harder for better compensation (salary, bonus, others). On the other hand people may feel frustrated leading to employee turnover. A good example of that is a sales person in a car showroom, if the person does not reach the monthly target of sales this person may face punishment such as demotion or even termination of employment. Or also a bank sales person who has to go to companies and promote credit cards also may face the same situation.
Laissez-Faire Leadership means "leave it be" and it is the kind of leadership that the leaders give freedom to their employees; they are able to do their work setting their own deadlines. The leader’s role is to support their team giving advice and resources for the projects if there is no feedback regularly the team may become unfocused, or also if the team is not experienced and highly educated the work will not be effective. On the other hand if monitored it may lead to high job satisfaction and effective productivity. A good example of that is TechLab a research laboratory that promotes the freedom of their employees in their work, their leader provides support and advice if needed however she does not interfere in the day-to-day clinics operations.
Transformational Leadership is known as the best leadership style because the leaders are inspiring, using different methods to motivate their followers (Boje, 2000). The leaders use
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