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international journal of research and innovation in social science ijriss volume v issue viii august 2021 issn 2454 6186 an analysis of the concepts of transformational leadership and transactional leadership ...

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      International Journal of Research and Innovation in Social Science (IJRISS) |Volume V, Issue VIII, August 2021|ISSN 2454-6186 
                   An Analysis of the Concepts of Transformational 
                Leadership and Transactional Leadership: The Way 
                                                                       Forward? 
                          Agbarakwe, Chineme Beatrice1, Amah, Edwinah (PhD) 2, Okocha, Belemenanya Friday (PhD) 3 
                                             1Doctoral Candidate, Ignatius Ajuru University of Education, Nigeria 
                                     2Professor of Entrepreneurship & Management, University of Port Harcourt, Nigeria 
                                                        3
                                                         Researcher, University of Port Harcourt, Nigeria 
             Abstract:  Transactional  and  transformational  leadership  styles      Bono 2000, Odumeru & Ogbonna, 2013). Burns (1978) was 
             have  been  adopted  by  most  organizations,  but  there  exists  a     the  first  to  introduce  these  two  themes  when  researching 
             controversy as to which of the two leadership styles is the most         political leaders. This was further developed and enlarged by 
             appropriate and acceptable for organizational effectiveness and          Bass and Avolio (1979) to encompass the whole range model 
             competitiveness. A survey of pertinent research on transactional         of  leadership,  and  it  is  now  widely  used  in  organizational 
             and transformational leadership styles is included in this study.        psychology and management (Jung & Sosik, 2002).  
             According to the findings, transformational leadership is more 
             important  than  transactional  leadership  in  specific  situations.    Transformational  leadership  is  a  management  style  that 
             Transactional  leadership  has  been  demonstrated  to  have  a          encourages employees to try new things and give their all so 
             considerable positive impact on organizational performance in            that the organization can exceed the competition. By defining, 
             different circumstances. As a result, both leadership styles were        expressing,  and  explaining  the  vision,  as  well  as  inspiring 
             shown to be useful to businesses and could be used separately or         individuals to work toward the organization's goals, the leader 
             in combination, depending on the context of the organization and         reorganizes the teams and the company (Amah, 2006). On the 
             the task at hand.                                                        other  side,  transactional  leadership  occurs  when  leaders  aid 
             Keywords:       Leadership,        Transactional        leadership,      organizations in attaining their immediate goals while making 
             Transformational leadership                                              no  attempt  to  change  the  course  of  events.  Employees  are 
                                   I. INTRODUCTION                                    given    the   resources    they    need    to   complete     their 
                 eadership is defined as a process that encourages others to          responsibilities, and performance is linked to rewards. This is 
                 give their all in order to achieve a specific goal. It is a          the  leadership  perspective  adopted  by  contingency  and 
             L                                                                        behavioral  theories,  which  focuses  on  leaders'  conduct  to 
             manager's ability to accept and aggressively encourage others            increase employee performance and satisfaction (Godwin et 
             to act in a desired and different manner in order to achieve the         al, 2011). 
             organizational goal (Armstrong, 2009 & Certo, 2002). Amah 
             (2006) defined leadership as a process in which a conducive              The  majority  of  authors  and  researchers  feel  that  both 
             environment or circumstance is created for people who are                leadership  styles  differ  in  idea  and  practice,  while  others 
             motivated to work with zeal to attain the organization's goals.          believe    that   transformational      leadership    outperforms 
             One of the most important aspects of corporate performance               transactional   leadership    by    allowing    individuals    and 
             and competitiveness is leadership.                                       organizations to attain high levels of performance. Lowe et 
                                                                                      al.,  1996;  Howell  &  Avolio,  1993;  Bass  &  Avolio,  1994; 
             Every organization is created with the intention of achieving            Howell  &  Avolio,  1993;  Bass  &  Avolio,  1994;  Howell  & 
             specific  objectives.  As  a  result,  a  leader  must  persuade         Avolio,  1993).  According  to  Weihrich  et  al.  (2008), 
             members of the organization to willingly devote their energies           transactional  leadership  is  a  "Subset"  of  transformational 
             to  achieving  such  goals.  According  to  Fasola  et  al  (2013),      leadership. Furthermore, both leadership styles are claimed to 
             leaders  are  the  creators  of  vision,  corporate  ethics,  and        have  a  positive  impact  on  organizational  productivity, 
             citizenship behavior, which they utilize to change companies             employee performance, employee happiness and commitment, 
             by  encouraging  subordinates  to  perform  at  higher  levels  in       and organizational performance (Hartog et al.,1977). 
             order to boost organizational productivity and performance.              This    study    therefore    is   aimed     at   analyzing     the 
             Many  theories  have  been  proposed  to  explain  effective             transformational  and  transactional  leadership  styles  to 
             leadership  styles,  with  transformational  and  transactional          ascertain  the  most  adaptable  and  acceptable  and  right  way 
             leadership theories being two of the most famous (Judge &                going forward for organizations. 
             Conceptual Framework 
             www.rsisinternational.org                                                                                                        Page 265 
      International Journal of Research and Innovation in Social Science (IJRISS) |Volume V, Issue VIII, August 2021|ISSN 2454-6186 
                                                                    Idealized Influence 
                Transformational Leadership                         Inspirational Motivation 
                                                                    Intellectual Stimulation 
                                                                    Individualized Consideration  
              Transactional Leadership                             Contingent Rewards 
                                                                   Management- By Exception-Active 
                                                                   Management-By Exception- Passive. 
                                                                   Laissez-Faire  
                                                                                                                             
                               II. LTERATURE REVIEW                                also  transformed  IBM  company  from  a  money-losing 
             Leadership                                                            computer  hardware  company  to  a  powerful  servicing  firm 
                                                                                   (McShane, 2008). As previously stated, good leaders improve 
            "A process through which employees in an organization are              organizational    performance,     and    bad   leaders    reduce 
            motivated, inspired, or encouraged to be productive toward             performance.  Continental  Airlines,  for  example,  had  gone 
            the achievement of organizational goals," Yukl and Lepsinger           through 10 CEOs in as many years and was looking for a 
            (2005) describe leadership. Leadership not only function as an         good leader until Gordon Bethune came along and made a 
            inspirational process, but is particularly involved in creating        substantial contribution to the airline's success. Bad leaders, 
            the organizational vision, corporate values and ethics which           on the other hand, have a tendency to drain the "economic 
            are geared towards the organization [Amah, 2006].                      value" of the firm. AI Dunlop, popularly known as "Chainsaw 
            Effective Leadership                                                   AI," was a tough boss who took a hard line to cut expenses, 
                                                                                   causing  Sunbeam  to  go  bankrupt  in  less  than  two  years, 
            Effective leadership is defined as a leader's capacity to get his      exhibiting bad leadership (McShane, 2009). 
            subordinates  to  perform  better  over  time  [McShane,  2009].       Researchers have attempted to discover successful leadership 
            Effective leadership encourages the adoption and practice of           styles  that  can  contribute  to  positive  organizational  results 
            organizational ethics and good workforce management which              over the years. Two of the leadership perspectives that will be 
            in turn leads to improved performance. As a result of effective        discussed in this study are transformational and transactional 
            leadership,  subordinates  are  motivated,  committed,  and  top       leadership styles. 
            performers.  Effective  leaders  focus  mainly  on  the  vision, 
            mission  and  goals  of  the  organization  and  insist  on  the       Transformational Leadership 
            workers doing the right things, while managers are concerned           Transformational leadership is defined as "leaders' behaviors 
            about doing things right. They promote change and challenge            that  transform  and  drive  followers  to  achieve  beyond 
            situations as they arise (Bennis, 1989).                               expectations while transcending self-interest for the sake of 
            The  impactful  efforts  of  successful  managers  (leaders)  on       the company" (Avolio et al., 2009). Transformational leaders 
            workers  improve  organizational  performance.  Example  of            are  noted for re-energizing and leading ailing businesses in 
            such  leaders  was  Gordon  Bethune  who  transformed                  new     directions   by    changing     operational    processes, 
            Continental Airline that went bankrupt in 1994, restored it to a       organizational design, and culture (Bass, 1990). In addition, a 
            number one on-time  airline  of  that  decade.  Louis  Gerstner        transformational  leader,  according  to  Zaleznik  (1977), 
            www.rsisinternational.org                                                                                                    Page 266 
       International Journal of Research and Innovation in Social Science (IJRISS) |Volume V, Issue VIII, August 2021|ISSN 2454-6186 
              concentrates on changing the organizational context, changing                              being and how he behaves as a mentor or coach to 
              tactics,   and  changing  culture  to  meet  the  operating                                him. 
              environment. In today's world of technological advancements                      Transformational  leadership  happens  when  leaders  impact 
              and developments, many businesses face fierce competition                        their employees in three ways, according to Jones & George 
              from competitors in order to get a larger market share and a                     (2006): 
              competitive advantage over their competitors. To survive in 
              such a challenging situation, organizations require exceptional                       1)   Transformational leaders teach their people the value 
              leaders who can re-strategize the organizational structure and                             of their work and the importance of giving it their all 
              activities.    Louis     Gerstner      was     an    example       of    a                 to achieve the organization's goals. 
              transformational  leader  who  re-engineered  and  repositioned                       2)   Transformational  leaders  make  it  apparent  to  their 
              IBM,  which  had  lost  billions  of  dollars  in  1991  while                             subordinates  that  they  must  grow,  develop,  and 
              domineering  the  market  with  mainframe  computers,  into  a                             succeed in their jobs. 
              none-to-equal;  whereas  new  organizations  such  as  Dell                           3)   Transformational leaders inspire their employees to 
              Computers, Microsoft, and Intel made a technological shift to                              work hard not just for their own personal benefit, but 
              personal  computers,  which  drew  large  crowds  (McShane,                                for the sake of the company as a whole. 
              2009). Heinrich Von PIERER, a CEO of a German Company                            Elements of Transformational Leadership 
              Siemens in the 1990s, transformed the enterprise that suffered 
              stiff  competition globally due to their organizational culture                  According  to  McShane  (2009),  transformational  leadership 
              that was conservative and perfectionist and so did not allow                     consists of seven elements:  
              innovation and creativity. But as Von Pierer became CEO in                            1)  NEW  VISION:  To  begin  with,  transformational 
              1992,     he     created     an    atmosphere        that    encouraged                    leaders, as previously said in this work, have a new 
              subordinates‟interaction,  critique,  training  and  innovation                            vision for the organization that involves changes in 
              which  gained  the  organization  a  competitive  advantage                                culture, strategy, and organizational design, as well 
              (Evans, 1970).                                                                             as the adoption of new norms and values. According 
              According  to  Schuster  (1994),  transformational  leadership                             to    Jones  &  George  (2006),  transformational 
              aims to increase employee engagement while also improving                                  managers are charismatic in their behavior and have 
              their  quality  of  life.  Transformational  leaders,  according  to                       a vision of how things should be done in teams and 
              Fasolaet  al  (2013),  have  empathy  for  their  subordinates'                            in  the  company  that  is  considerably  different  from 
              developmental needs,  which motivates them to act on their                                 the norm. Such a vision allows for significant gains 
              own needs as well as the needs of others and the group as a                                in  group  and  organizational  performance  (Jones  & 
              whole. Employees who work for transformative leaders are                                   George, 2006). 
              more  civic-minded  and  take  part  in  workplace  decision-                         2)  COMMUNICATE                  VISION:        Transformational 
              making (Barling et al, 1996). The following transformational                               leaders  constantly  convey  their  new  vision  to 
              leadership  outcomes  on  subordinates  were  identified  by                               subordinates  through  simple  and  unambiguous 
              Pounder  (2008):  a)  the  leader's  ability  to  motivate                                 phrases,  images,  and  symbols  in  order  to  persuade 
              subordinates to work hard, b) the subordinates' understanding                              them to accept it and educate them on how to carry it 
              and  belief  in  the  leader's  efficacy,  and  c)  the  subordinates'                     out (Conger, 1991). 
              contentment  with  the  leader.  Dixon  (1998)  identified  four                      3)  MODEL DESIRED BEHAVIOR: Transformational 
              primary  intrinsic  characteristics  that  influence  a  leader's                          leaders set an example by living by the ideals they 
              behavior,  including  self-confidence,  integrity,  honesty,  and                          preach  in  order  to  attain  their  goals.  This  was  a 
              personal  ideals,  based  on  his  research.  Burns  outlines  four                        strategy used by Lee Iacocca, when he took over as 
              major characteristics of transformational leadership: idealized                            CEO of Chrisyler Company which was at the verge 
              influence,  inspiring  drive,  intellectual  stimulation,  and                             of going bankrupt. In the struggle for the company's 
              customized concern (1978).                                                                 survival,  his  decision  to  take  a  one-dollar-a-year 
                   1)    Idealized  Influence:  This  refers  to  how  much  the                         salary pending the company's return to profitability 
                         subordinates  admire  the  leader's  actions,  which                            sent  a  message  of  togetherness  to  the  employees 
                         causes them to identify with him.                                               (McShane, 2009). 
                   2)   Inspirational  Motivation:  This  metric  reflects  how                     4)  EMPOWER              EMPLOYEES:             Transformational 
                         much  the  leader's  stated  vision  appeals  to  and                           leaders empower their subordinates in a number of 
                         motivates  followers  to  be  optimistic  about  future                         ways  to  carry  out  the  new  vision's  initiatives.  For 
                         goals while remaining focused on the current work.                              example, in his appeal to subordinates to help and 
                   3)   Intellectual  Stimulation:    This  demonstrates  the                            enhance  Continental  Airlines,  Gordon  Bethune 
                         leader's  ability  to  question  assumptions,  take  risks,                     offered them a part of the company's profits. 
                         and get feedback from subordinates.                                        5)  MEANINGFUL  CHANGES:  To  gain  employee 
                   4)   Individualized Consideration: This demonstrates how                              support,      transformational        leaders      implement 
                         concerned the boss is about each subordinate's well-                            significant      and     significant     changes      in    the 
              www.rsisinternational.org                                                                                                                     Page 267 
      International Journal of Research and Innovation in Social Science (IJRISS) |Volume V, Issue VIII, August 2021|ISSN 2454-6186 
                       organization's  activities,  control,  incentive  systems,           when  certain  goals  are  fulfilled  on  time  or  ahead  of 
                       and architecture. Continental Airline's CEO achieved                 schedule. Contingent negative reinforcement is employed 
                       this  by  tying  employee  bonuses  to  improved                     when set  goals  are  not  met,  tasks  are  not  finished,  or 
                       customer service.                                                    performance is poor. According to Fasola et al (2013), 
                  6)  LEAD  WITH  INTEGRITY:  Transformational                              dependent rewards are given to the subordinates  group 
                       leaders have a high reputation for being dependable,                 based on the achievement of defined goals on time, ahead 
                       honest, and fair, but they are firm in their decisions.              of  schedule,  or  promoting  good  working  speed  to  job 
                       They conduct business in an ethical, transparent, and                completion. They further noted that group punishments 
                       honest manner.                                                       are  meted  on  the  group  like  suspension,  salary  cuts  or 
                  7)  CREATE  AN  ENDURING  ORGANIZATION:                                   extension of work hours where assigned goals or tasks are 
                       Transformational      leaders    build    and     manage             not achieved or production quality or quantity fell below 
                       organizations    that   will    continue    to   function            standard. 
                       successfully and efficiently long after they have left          2)  MANAGEMENT-BY-EXCEPTION                        -     ACTIVE: 
                       the company. Transformational leaders who are great                  Management  by  exception  occurs  in  transactional 
                       build strong organizations consolidate it and develop                leadership  when  the  leader  intervenes  when  there  are 
                       employees who will continue after they are gone.                     deviations  from  the  rules  and  regulations,  anticipates 
             Transactional Leadership                                                       problems or stated performance levels are not met, and 
             Employees  are  driven  by  a  "exchange  of  rewards,                         initiates measures to correct and resolve the problems to 
             compliments,  and  incentives,"  according  to  transactional                  improve subordinate performance, according to Hackman 
             leadership  (Fasola  et  al.,  2013).  Bass  (2008),  noted  that              (2009). 
                                                                                       3)  MANAGEMENT-BY-EXCEPTION  –  PASSIVE: 
             transactional  leaders  lead  by  means  of  „social  exchange‟.               Leaders who manage by exception – passively, according 
             Transactional leadership, according to Ivey and Kline (2010),                  to Odumeru and Ifeanyi (2013), do not become involved 
             involves  characteristics  of  'leader-follower  exchanges,'  in               in  resolving  problems;  instead,  they  stand  by  until  the 
             which leaders exchange valuable products with subordinates                     problems become too serious, at which point they act. 
             in  the  interest  of  each  other's  'agenda.'  Furthermore,             4)  LAISSEZ  -  FAIRE:  According  to  Robbin  &  Coulter 
             transactional  leaders,  according  to  Scareset  al  (1992)  and              (2007),  leaders  avoid  making  judgments  and  taking 
             Armstrong  (2009),  "sell  money,  jobs,  and  security  for                   responsibility  in  this  strategy.  Instead,  leaders  delegate 
             subordinates  to  follow  directions."  In  other  words,  using               total  responsibility,  freedom,  and  influence  over  work 
             rewards  and  power-influence  to  motivate  high-performing                   decisions to subordinates (Chaudhry & Javed, 2012). 
             subordinates, reinforce desired behaviors, and reprimand and 
             penalize low-performing subordinates.                                     Transactional  leadership,  according  to  Khalil  et  al.,  (2016), 
             Transactional  leadership,  often  known  as  management                  comprises  an  exchange  process  in  which  followers  obtain 
             leadership, is responsible for supervisory, organizational, and           immediate  and  tangible  rewards  for  obeying  the  leaders' 
             group  performance.  According  to  Odumeru  and  Ifeanyi                 directions.  Rewards  and  incentives  have  a  critical  role  in 
             (2013), transactional leadership is a subset of transformational          employee engagement in transactional leadership, according 
             leadership, and both are linked to organizational success. This           to Burns (1978), as cited by Khalil et al., (2016). According to 
             type  of  leadership  is  most  effective  in  times  of  crisis  and     Johnson  (2017),  transactional  leadership  managers  provide 
             emergency,  as  well  as  when  projects  must  be  performed             assignments  to  employees  and  reward  or  punish  team 
             precisely and meticulously. Transactional leaders, according              members  based  on  performance.  Transactional  leadership, 
             to Hargris et al. (2010), are more concerned with monitoring              according to Ingram (2019), can be defined as "arrow hit the 
             subordinates'  work  efforts  and  procedures,  as  well  as              target"  since  leaders  are  more  concerned  with  tasks  being 
             deviations,  than  with  thinking  about  the  future.  This  is  to      completed  easily  and  on  time  rather  than  traditional 
             imply  that  transactional  leaders  lead  in  an  action-oriented        organizational tactics. 
             manner. They put a greater emphasis on lower-level needs by               Instead  of  imagining  an  exciting  and  challenging  future, 
             focusing  on  individual  task  performance.  Transactional               transactional  leaders  frequently  maintain  the  status  quo  and 
             leaders, according to Durbrin (2004), should concentrate on               control  their  employees.  Because  transactional  leadership  is 
             clarifying duties and tasks, which he agrees with.                        based  on  risk  aversion  and  protecting  the  status  quo,  it  is 
             Bass & Avolio (1994), noted that transactional leadership has             thought  to  be  anti-entrepreneurial  because  it  discourages 
             four components:                                                          employees  from  seeking  out  and  exploiting  chances. 
                                                                                       Followers of this leadership style tend to limit themselves to 
             1)  CONTINGENT REWARD: Odumeru & Ifeanyi (2013),                          following the leaders' orders and doing exactly what they've 
                  pointed out two types of contingent reward:                          been taught (Moses & Ritossa, 2007; Ryan & Tipu, 2013). 
                  Contingent  positive  reinforcement  and  Contingent                 According to Jung (2001), transactional leaders are primarily 
                  negative       reinforcement.       Continuous         positive      concerned  with  operational  effectiveness  and  process 
                  reinforcement in the form of praise or reward is delivered           efficiency within the limits of existing systems. Subordinates 
             www.rsisinternational.org                                                                                                         Page 268 
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...International journal of research and innovation in social science ijriss volume v issue viii august issn an analysis the concepts transformational leadership transactional way forward agbarakwe chineme beatrice amah edwinah phd okocha belemenanya friday doctoral candidate ignatius ajuru university education nigeria professor entrepreneurship management port harcourt researcher abstract styles bono odumeru ogbonna burns was have been adopted by most organizations but there exists a first to introduce these two themes when researching controversy as which is political leaders this further developed enlarged appropriate acceptable for organizational effectiveness bass avolio encompass whole range model competitiveness survey pertinent on it now widely used included study psychology jung sosik according findings more important than specific situations style that has demonstrated encourages employees try new things give their all so considerable positive impact performance organization can...

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