Idealized Influence On Leadership

1.Explore the effect of the culture on leadership style. Does the transactional-transformational leadership paradigm transcend organizational and national boundaries?
2.Critically assess this leadership style and comment on which may be more superior.
3.Organizational leadership strategies in a developing economy.
4.Leadership effectiveness in Global Virtual Teams.
5.Transactional, transformational and laissez-faire leadership: A meta-analysis comparing women and men.
6.The relationship between charismatic leadership behaviors and organizational commitment.



In this paper, we have conducted research on the efficiency of both the transformation and transactional leadership. The research is conducted to evaluate the efficiency of both and make a decision regarding which leadership style is superior to the other. The paper has been covered the four different headings. The first heading has been discussed about the transformation leadership and its use in today's business context. On the other hand, another heading has been discussed the transactional leadership. This has been done to collect necessary information of each leadership style and make a comparison on the basis of collected data. Apart from this, comparative analysis is also performed to measure the efficiency of both and disclose which leadership style has enough potential of fulfilling today's leader needs and demands. This paper will prove very beneficial for a large number of target audiences. It is because this paper will help them to understand the efficiency of both transformation and transactional leadership and adopt the appropriate one in their day to day life. Generally, it is believed that each manager needs to play the leadership role at their workplaces. The knowledge of transformational and transactional leadership will help them to follow their skills and utilize them in a right direction.

Transformational Leadership

The transformational leadership is an effective approach that brings change in social and individual systems. On the other hand, Breevaart (2014) described the transformational leadership as an ability to get people to want to change, to improve and to be led. The transformational leadership includes evaluation of associates' motives, satisfying their needs, and valuing them. One of the famous transformational leadership examples is Sam Wilton who is the founder of Wal-Mart. He personally visited its stores across the country to meet with his associates and show their performance and dedication towards their assigned roles and responsibilities (Bealer, 2014).

Transformational Leadership sectors

The transformational leadership is based on four sectors. These sectors are following:
Idealized Influence: The first and foremost sector of transformational leadership is an idealized influence. It mainly explains managers who are working as a role model for their associates. The managers with idealized influence are respected and honored by their associates due to their effective leadership style (Birasnav, 2014). On the other hand, it can also be said that managers in this sector are recognized for better decision making.
Inspirational Motivation: Another sector that makes the transformational leadership popular among leaders is inspirational motivation. This sector of transformational leadership describes the manager who has capability of motivating the individuals to fulfill their commitments towards organizational goals and objectives. Furthermore, it is also said that the managers with inspirational motivation encourage teams to use their full capability to increase revenue and earn market growth for belonging firms.
Intellectual Stimulation: This sector defines managers who encourage creativity and innovation through challenging views and beliefs of a group (Delegach, 2017). The managers with intellectual stimulation are considered relevant for the promotion of critical thinking and problem-solving attitude.
Individual Consideration: This sector includes managers who behave as coaches and counselors to attain their specified goals that help both the organization as well as associates.

(Dvir, 2015)

Strengths and Weaknesses of Transformational Leadership

The transformational leadership also has some strengths and weaknesses that make it popular among individuals and corporate team leaders. The strength of transformational leadership is that it is using a well-recognized set of leadership strategies. Due to the integration of effective leadership strategies, it is gaining popularity among individuals and serves their needs through providing an appropriate way of achieving ultimate goals. On the other hand, strength is that the transformational leadership is influencing associates at all levels. For example, it influences one-to-one associated and whole organization. Apart from this, transformational leadership develops strong leaders through developing their interpersonal and development skills.
Moreover, the transformational leadership also has some weaknesses that serve as a barrier for today's leaders (Engelen, 2015). The weakness of transformational leadership is that it may have a lot of components that focus superficially rather than evaluating the effective depth of engagement and treat leadership more as a personality trait than as a learned behavior. Therefore, this prevents a leader to lead the team in the desired direction. On the other hand, another weakness is that the transformation leadership has the potential for abusing power. Therefore, these weaknesses prevent its use and make the presence limited among leaders.

Application of Transformational Leadership

In order to apply the transformational leadership, a manager need not follow a specific set of guidelines. Generally, becoming a best transformational leader is considered as an iterative process. Therefore, a manager can apply the transformation leadership only through understanding its basics and four different sectors. Moreover, transformational leadership requires the below-mentioned quality among leaders:
•    Best listening skills and presence of patience to listen to views of others
•    Develop a vision through utilizing human resources
•    Strong role model with high set of values (F. Vito, 2014)
•    Motivator to encourage associates to do what is best for the organization
•    Behave as a change agent.
Therefore, it can be said that the transformational leadership is a good option for managers because they can determine the ultimate success by effective use of it. On the other hand, it can also be said that transformational leadership motivates managers to engage as effective leaders in the business world.

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Transactional Leadership

Another important leadership style is transactional leadership. It is also considered one of the recognized managerial leadership that concentrates on the role of supervision, group performance, and organization. In the transactional leadership, the leaders and manager promote compliance of their associates and subordinates through both punishments and rewards (McCleskey, 2014). Unlike transformational leadership, managers using the transactional approach are not looking to change the future; they are searching to keep things the same merely. Apart from this, it is right to say that the transactional leaders concentrate on followers work to identify problems and deviations.

Qualities of Transactional Leadership

The transactional leadership is the combination of a lot of qualities that become the reason for its success among leaders. The first and foremost quality identified in transactional leadership is that transactional leaders utilize punishments and reward to motivate the associates and gain their confidence. On the basis of the reward and punishments, they manage the whole schedule of their associated tasks and obligations. On the other hand, another quality of transactional leaders is that they are extrinsic motivators that bring minimal compliance from followers. As an extrinsic motivator, they accept the structure, culture, and goals of the existing organization (Masa'deh, 2016). Another quality is that transactional leadership encourages leaders to be action-oriented and directive. With the help of such development in their nature, they will be able to work within existing systems and negotiate to attain predetermined goals of the organization.

Components of Transactional Leadership

The transactional leadership is a combination of different components that collectively shape the behavior of a leader or manager. These components are following:
Contingent Reward: This component is engaged in representing the degree to which leaders inform others what to do in order to be honored, recognized, and rewarded (Masa'deh, 2016). Apart from this, it also informs the information about expectations of others to recognize their accomplishments.
Management-by-Exception: The second component is management-by-exception. According to this component, it is evaluated that whether the leaders and managers inform others about job requirements, and standard for their performance evaluation.
Laissez-Faire Leadership: Another core component of transactional leadership is Laissez-Faire leadership. It mainly engaged in the evaluation of whether leaders need little of others, are content to let things ride, and let others do their own thing (Muenjohn, 2015). It is highly associated with freedom and autonomy.
Therefore, it can be said that the transactional leadership is also an important leadership style that can identify among leaders of today's generation. Transactional leaders always engaged in search of quality conscious aspects that will further prove helpful in the accomplishment of associated goals and objectives.

Comparative analysis of both Transformation and Transactional leadership

There is a high difference exists between the transactional and transformational leadership. Roueche (2014) said that the transactional leaders are managers who exchange tangible rewards for the loyalty and work of their associates. On the other hand, the transformational leaders are managers who work with the collaboration of their followers and associates, focus on higher order intrinsic requirements to provide the satisfaction. Therefore, it is right to say that the transformational leadership is far better than the transactional leadership. There are a lot of reasons behind this statement. The first and foremost reason is that transformational leadership is proactive in nature (Rodrigues, 2015). Due to the proactive leadership presence, the leaders can highly satisfy their employees and motivate them to put their inherent efforts for the overall growth of the company. On the other hand, transactional leadership is responsive in nature which is not appropriate for leaders of today's generation. Apart from this, another reason is that the transformational leadership motivates employees to change organizational culture through the implementation of new ideas. At the same place, the transactional leadership asks leaders to works within the organizational culture and supports their contribution towards its maintenance. Therefore, it can state that both transformational and transactional leadership have importance, but their difference becomes the reason of popularity of transformational leadership than transactional leadership. The difference between both can easily understand through the following table:
Transformational Leadership Transactional Leadership
It is proactive in nature. It is responsive in nature.
Encourage associates through motivating them to put group interests first Encourage employees by appealing to their self-interest (Smith, 2015)
The associates and employees attain objectives through moral values and high goals Employees attain their aims through punishments and rewards determined by the leader
It is based on intellectual stimulation It is based on management by exception
On the basis of identified differences of both, it can be said that the transformational leadership is superior to the transactional leadership. The first reason is that this leadership is based on intellectual stimulation. Therefore, it has more potential of promoting creativity and innovative ideas to solve problems (Tyssen, 2014). On the other hand, the transactional leadership does not have the same efficiency. The use of rewards and punishments is not a good source of promoting creativity and innovation in the workplace. So, it is said that the transformational leadership is best for today's generation leaders.


After studying all this, it can be concluded that both the transactional and transformational leadership is representing the nature and effect of leadership in an effective manner. On the basis of the above-mentioned analysis, it has been identified that the transformational leadership is better and significant than the transactional leadership. It is because of promotion of high engagement skills and innovation and creativity at the workplace. Apart from this, it is also identified that the transformational leadership has more strengths than the transactional leadership. So, the use of transformational leadership is right option in front of leaders.


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