Daily Transactional and Transformational Leadership

Question: Discuss about the Daily Transactional and Transformational Leadership. Answer: Introduction: As stated by Hamstra et al., (2014), leadership is the most important factor that contributes to the well being of an organization. The transformational and the transactional leadership theories happen to be most prominent leadership theories among the various leadership theories. Scholars agree on the fact that transformational and transactional leadership are dissimilar in concepts and practice. In the view point of Odumeru and Ogbonna, (2013), transformational leadership significantly augments transactional leadership. A transformational leader is one who inspire and stimulates the followers in order to get unexpected outcomes. He is responsible to look at the developmental needs of those who follow the leaders and always keep a trace of any kind of problem or issue faced by them. A transformational leader is responsible to enhance morale, motivation and performance of the followers incorporating a number of mechanisms. In this respect, Breevaart et al., (2014) commented that a transformational leader is the one who becomes a role model for the followers and inspire them to undertake the authority of their work. The leader is also responsible to understand the strengths and weaknesses of the followers and then aligning them with the most suitable roles and duties. This automatically enhances the ability of followers or employees. Martin Luther King, Steve Jobs are the excellent examples of transformational leaders. Jeff Bezos of Amazon also show his transformational leadership characteristics in his major business activities. Transactional leadership always focuses on the overall task of the supervision and team performance. It is the form of leadership, where the leaders promote conformity of the followers by the means of rewards and penalties. Hamstra et al., (2014) pointed out that unlike the transformational leaders, the transactional leaders do not look to change in near future and they spend time to find faults and deviation in the followers. This type of leadership is effectual for an organization, especially when their remains a consistency in the project. A transactional leader uses reward for positive actions and penalty for the negative. They are more concern with the process and flow of work rather than forward-thinking ideas. Leaders like Bill Gates, Howard Schultz are renowned for their transactional leadership style. The four major components of transformational leadership style are idealised influence where the leaders behave in an admirable manner and display his convictions and set clear set of values. They act as the role model for their followers (Odumeru Ogbonna, 2013). The way, the leader motivates the team inspire them with optimistic goals and offers better knowledge for the current tasks in operation. On the other hand, transactional leaders maintain a primarily passive nature in the business activity. Their criteria are always associated for rewarding the followers and maintaining a status quo. In this respect, McCleskey, (2014) stated that Douglas McGregors Theory X and Theory Y can be compared with these styles of leadership. Theory X can be put side by side with the transactional leadership where the leaders rule by fear and consequences; while Theory Y and the transformational leadership are comparable in nature because this style focuses on the idea where managers are responsible to encourage their employees. References: Breevaart, K., Bakker, A., Hetland, J., Demerouti, E., Olsen, O. K., Espevik, R. (2014). Daily transactional and transformational leadership and daily employee engagement.Journal of occupational and organizational psychology,87(1), 138-157. Hamstra, M. R., Van Yperen, N. W., Wisse, B., Sassenberg, K. (2014). Transformational and transactional leadership and followers achievement goals.Journal of Business and Psychology,29(3), 413-425. McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and leadership development.Journal of Business Studies Quarterly,5(4), 117. Odumeru, J. A., Ogbonna, I. G. (2013). Transformational vs. transactional leadership theories: Evidence in literature.International Review of Management and Business Research,2(2), 355.