Leadership extreme ends

The transactional leadership style was first described by Max Weber in 1947, and again by Bernard M. Bass in 1981. Transactional leaders are on the opposite leadership theory spectrum relative to transformational leaders. The former depends on a system of rewards and punishments, while the latter takes advantage of internal motivations.

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The theory behind transformational leaders

based, on the hypothesis that leaders can exploit a need of the follower. These particular needs are not based on quid pro quo transactions, but higher order needs. These needs are those of the total person, and are closely aligned with the internal motivational factors of the follower.

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Transactional leadership

The common leadership pattern found is Transactional leadership. e.g. When CEO is closely monitoring and focusing on Realization. Utilization, Gross margins and EBITA day after day Quarter after Quarter.

He is just indulging in Transactional leadership

Result is budgeted targets are achieved and everyone works hard To satisfy the CEO who in turn Satisfies the board

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The question is
MBO
Being extremely busy and reasonably successful is Not sufficient enough for organisational greatness or even growth. Traditional MBO style is necessary but not sufficient valid for Growth Leadership Growth needs Transformational leadership

Going?
Hard working leader creates hard working culture Hard work and dedication can keep the organisation going And ensure survival for short run

Growing

But is that guarantee for growing?

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What is the answer for Growth and transformation?

Transformation happens when the leader is changing from Transaction to Transformational style This is not just another fashionable script on leadership style .

Sure, some leadership styles work best in changing situations.

Transformational leadership only can change and transform the followers by culture change and change the organization

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Transformational leadership -----four critical factors:

1. The leader and follower relationship: . Transformational leadership needs deeper understanding of each others needs. Unlike Transactional leader the transformational leader has to win and work on trust .He has to make huge deposits in emotional bank account 2. The Intellect than information: The transformational leader always creates the right atmosphere for the followers to express themselves fearlessly. The aim is to get information insight rather than information, The goal orientation of transactional leader does not provide for information insight

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4 key elements for success

3-Inspiration.

Transformational leader he gives people a myriad avenues to work better while enjoying the ride. Freedom is granted .
4-Influence. Transformational leaders influence people by internalizing and sharing the vision, the transformational leader manages to inspire followers to be enjoying every moment of co creating and increasing the organisational effectiveness and performance.
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WHAT IS TRANSFORMATIONAL LEADERSHIP?

Transformational leadership is shifting paradigms it is about large scale Change. Its about how leaders could transform their organizations to consistently deliver the value at the same level over and over again. To their followers and their customers. Transformational leadership mainly is in creating positive change in the organization. These transformers can then change their level of service and look out for the whole group. A transformational leader doesnt just demand results. He motivates his people, increases their morale and helps them achieve peak performance.
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Transformational leader behaviour

Demand or command?
A transformational leader doesnt just demand results.

Stays Away from MBO style

but increases the emotional bonding and helps team members achieve complete alignment

Alignment

"unwritten agreement brings total alignment

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What does Transactional leaders do

Transactional leaders brilliantly make things happen as per goals that are set by him Goal setting is always top down They even micro manage and even can upset whole lot of second level managers. They make attempt to be nice Leadership Style is more of telling and occasionally selling They talk of delegating but rarely do it they are workaholic and expect every one around to do same Do not care about work life balance The leader is shouting boss and everyone agrees in front of him only to defy once the leader out of the scene

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Men or women?

An interesting study conducted by Northwestern University with respect to transactional, transformational, and laissez fair leadership styles revealed that women are more likely to use transformational methods than male leaders.

This means most women were more interested in working with people holistically, not just making deals

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One Final Word

To be effective leader in the workplace, the leader must realize that switching between styles Transactional to Transformational--can make them a more effective

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