Lesson 3 - Transactional and Transformational Leadership - Part 5

8/18/2019 Lesson 3 - Transactional and Transformational Leadership - Part 5

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TRANSACTIONAL AND

TRANSFORMATIONAL LEADERSHIP

LESSON 3 – PART 4

PREPARED BY: DR. MUKUNDA KUMAR

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1. TRANSACTIONAL VERSES


• Another type of leadership based largely on the leader’s

personal qualities is:

• Transformational leadership:

i. Has a substantial impact on followers and

ii. Can potentially renew an entire organiation.

• !ne way to understand transformational leadership is to

compare it to transactional leadership.


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TRANSFORMATIONAL LEADERSHIP:

i.TRANSACTIONAL LEADERSHIP

• #he basis of transactional leadership is:

i. A transaction or

ii. $%change process between leaders and followers.

• The transactional leader:

a. &ecognies followers’ needs and desires and

b. Clarifies how those needs and desires will be satisfied

c. 'n e%change for meeting specified ob(ecti)es or performing certain duties.


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• Followers recei)e rewards for job performance

• Leaders benefit from the completion of tasks.

• Transactional leaders focus on the present and excel at

+eeping the organization running smoothly and efficiently.

• #hey are good at traditional management functions such as:

• planning and budgeting


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• #ransactional leadership can be quite effecti)e.

• -y clarifying expectations leaders help build followers’

confidence.

• atisfying the needs of subordinates may impro)e

producti!ity and morale.


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• Transactional leadership:

i. 'n)ol)es a commitment to 0follow the rules.

ii. aintain stability within the organiation rather than

promoting change.

• Transactional skills are important for all leaders.


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ii. TRANSFORMATIONAL LEADERSHIP

• Transformational leadership is characteried by:

• #he ability to bring about significant change.

• Transformational leaders ha)e the ability to lead changes in:

i. #he organiation’s )ision

ii. strategy and

iii.Culture as well as promote inno)ation in products and

technologies.


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• Transformational leadership focuses on:

intangible qualities such as:

i. )ision

ii. shared )alues and

iii.ideas in order to build relationships


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• #ransformational leadership tends to ha)e four

dimensions:

i. Charisma

ii. 'nspiration

iii.'ntellectual stimulation and

i). 'ndi)idualised consideration.

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i. "harisma

6ro)ides )ision and sense of mission and instils pride

along with follower respect and trust.

7or e%ample the late 8te)e 9obs of Apple showed

charisma by emphasising the importance of creating the

acintosh as a radical new computer and

8howed it again and again when he focused on products

li+e the i6od i6hone and i6ad

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ii. #nspiration

Communicates high e%pectation.

;ses symbols to focus efforts

$%presses important purposes in simple ways

7or e%ample &ichard -ranson the C$! of


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iii. #ntellectual stimulation

6romotes intelligence rationality and careful problem>

sol)ing.

7or e%ample your boss encourages to loo+ at a difficult

problem in a new way.

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i!. #ndi!idualised consideration

6ro)ides personal attention treats each employee

indi)idually and coaches and ad)ises

7or e%ample your boss drops by and ma+es remar+s

reinforcing your worth as a person.

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2. TRANSFORMATIONAL LEADERSHIP DIFFERS

FROM TRANSACTIONAL LEADERSHIP IN FOUR

SIGNIFICANT AREAS

Transformational leadership:

$. %e!elops followers into leaders

7ollowers are gi)en greater freedom to control their own

beha)iour

Arouses in followers an awareness of problems and

issues

Helps people loo+ at things in new ways so that

producti)e change can happen


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SIGNIFICANT AREAS

Transformational leadership &contd'

(. )le!ates the concerns of followers from lower*le!el physical

needs ?such as for safety and security@ to higher le!el

psychological needs ?such as for self>esteem and self>actualisation@

ower le)el needs are met through wages safe wor+ing

conditions.

6ays attention to each indi)idual’s needs for growth andde)elopment

#ransformational leaders change followers so that they are

empowered to change the organisation.

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SIGNIFICANT AREAS


+. #nspires followers to go beyond their own self*interests for the good of the group

,oti!ate people to do more than originally expected

a+e followers aware of the importance of change goals

and outcomes.


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SIGNIFICANT AREAS


7ollowers admire these leaders

=ant to be identified with them

Ha)e a high degree of trust in them

,oti!ates people:

i. #o belie)e in the need for change and

ii. -e willing to ma+e personal sacrifices for the greater purpose.

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SIGNIFICANT AREAS

*. 6aints a !ision of a desired future state and communicates it

in a way that ma+es the pain of change worth the effort

ignificant role of a transformational leader is to:

i. 7ind a )ision for the organisation that is significantly better

than the old one

ii. $nlist others in sharing the dream

"hange can only occur whenB

a. 6eople ha)e a sense of purpose and

b. A desirable picture of where the organisation is going.

=ithout )ision there can be no transformation

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REFERENCES

• =ood 9. effane &. 7romholt . =eisner &.

orrison &. and 8eet 6.8. ?21"@ !rganisational

-eha)iour: Core concepts and applications "rd

Australasian $dition 9ohn =iley and 8ons Australia.

• Daft &.. ?2,@. #he leadership e%perience 'nternational

edition #homson>8outh =estern Canada

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Lesson 3 - Transactional and Transformational Leadership - Part 5