Transformational leadership and transactional leadership styles
TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP STYLE
ABSTRACT
In this global competitive environment, effective leadership style is necessary to reduce the attrition rate. From the effective leadership styles only it is possible to achieve organizational goal productively. This paper wanted to see the transformational and transactional leadership style. Where Transformational leadership can be categorized into Charisma, Inspiration, Intellectual Stimulation and Individualized Consideration. While in Transactional leadership variables were contingent reward, management by exception (active), and management by exception (passive). Rather, they should be adapted to the particular demands of the situation, the particular requirements of the people involved and the particular challenges facing the organization.
Keywords : Transformational Leadership, Transactional Leadership, Strategic Human Capital Management.
1.0 INTRODUCTION
Taking a team from ordinary into extraordinary means understanding and embracing the difference between management and leadership. According to Peter Drucker, “ Management is doing things right; leadership is doing the right things”. Therefore, leaders of any organization are expected to carry out tasks with limited resource to the maximum level in order to maintain the competitive edge and sustain profitability position of the organization (Riaz, & Haider, 2010).
A leadership style refers to a leader’s characteristics behaviors in which when they are directing, motivating, guiding people, and also in managing their followers. The concept and definition of leadership and style may be different from one person. Usually, an effective leader normally will influences their employees or followers in a desired manner in order to achieve desired goals. Different leadership styles may affect organizational effectiveness or performance. Where transformational leadership is a stronger predictor of both job satisfaction and overall satisfaction.
ABSTRACT
In this global competitive environment, effective leadership style is necessary to reduce the attrition rate. From the effective leadership styles only it is possible to achieve organizational goal productively. This paper wanted to see the transformational and transactional leadership style. Where Transformational leadership can be categorized into Charisma, Inspiration, Intellectual Stimulation and Individualized Consideration. While in Transactional leadership variables were contingent reward, management by exception (active), and management by exception (passive). Rather, they should be adapted to the particular demands of the situation, the particular requirements of the people involved and the particular challenges facing the organization.
Keywords : Transformational Leadership, Transactional Leadership, Strategic Human Capital Management.
1.0 INTRODUCTION
Taking a team from ordinary into extraordinary means understanding and embracing the difference between management and leadership. According to Peter Drucker, “ Management is doing things right; leadership is doing the right things”. Therefore, leaders of any organization are expected to carry out tasks with limited resource to the maximum level in order to maintain the competitive edge and sustain profitability position of the organization (Riaz, & Haider, 2010).
A leadership style refers to a leader’s characteristics behaviors in which when they are directing, motivating, guiding people, and also in managing their followers. The concept and definition of leadership and style may be different from one person. Usually, an effective leader normally will influences their employees or followers in a desired manner in order to achieve desired goals. Different leadership styles may affect organizational effectiveness or performance. Where transformational leadership is a stronger predictor of both job satisfaction and overall satisfaction.
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