MGT 506 Module 4 Case

Lecture Notes: Transactional and Transformational Leadership

Transformational Leadership

Transformational leadership is a dynamic leadership behavior that inspires followers and also transforms the way followers think. Transformational leadership has been widely researched from many perspectives, including a series of qualitative studies of prominent leaders and CEOs in large, well-known organizations and has also been the focal point for a large body of leadership research since its introduction in the 1970s (Northouse, 2004, p. 183).

Transformational leaders are able to create a clear vision for followers. Pounder (2008) explains transformational leadership outcomes when reframing an organization by stating, the effect of transformational leadership on subordinates centers on three leadership outcomes:

the ability of the leader to generate extra effort on the part of those being led,

subordinates perception of leader effectiveness, and

their satisfaction with the leader (p. 2).

Transformational leaders are known for empowering followers. As with any type of leadership, Transformational leadership involves an exceptional form of influence that moves followers to accomplish more than what is usually expected of them. It is a process that often incorporates charismatic and visionary leadership (Northouse, 2004, p. 169). An example of a transformational leader is Mohandas Gandhi who was nominated for the Nobel Peace Prize five times. Gandhi was able to influence his followers in India to peacefully reclaim their land from the British. This transformation from violent protests to non-violent protests had many positive implications and outcomes. A different transformational leader was President John F. Kennedy. On May 25, 1961, President John F. Kennedy announced before a special joint session of Congress the ambitious goal of sending an American safely to the Moon before the end of the decade. Only eight years later, this near-impossible goal was accomplished.

Transactional Leadership

Transactional leadership is an exchange that occurs between a leader and a follower. For example, politicians who win votes by promising no new taxes are demonstrating transactional leadership (Northouse, 2004, p. 170). From a pragmatic perspective, it can be conceptualized as a business transaction that occurs between two parties. Transactional leadership assumes that followers agree about achieving the required goals and objectives in exchange for rewards or praise (Farag et al., 2009, p. 27).

Transactional leaders are successful because of their ability to entice and motivate followers. At times, followers need a reason to perform a task. Transactional leadership refers to the bulk of leadership models, which focus on the exchanges that occur between leaders and their followers (Northouse, 2004, p. 170).

Instructions:

Then, drawing on the material in the background readings and doing additional research, please prepare a 5- page paper (not including the cover and reference pages) in which you address:

Select two leaders (from the US or international) who you consider to be examples of transactional and transformational leadership. Conduct independent research on these individuals and create a profile that addresses the following:

oWhat makes one leader transactional and the other transformational?

oWhat added value does each bring to their organizations?

oWhat conditions and organizational contingencies influence whether a transactional or transformational leadership style would be most effective?

oConsidering your answer above, compare the effectiveness of both leaders you profiled in their given environments. Was their leadership style appropriate?