Definition of Transactional Leadership



Leadership John C Maxwell is a leadership ‘guru’, a speaker to Fortune 500 companies and an author to several books including ’21 Irrefutable Laws of Leadership’. Maxwell was also founded the 5 levels of Leadership a summary of, which can be found below:LevelDescriptionLevel 1 - PositionThe lowest level of leadership. It only requires that an individual gains a position. If a leader relies on people following them simply because of their positions then they will find leading people very difficult. Individuals may respect the position but not necessarily the person who holds it. They may follow because they feel they have to but not necessarily because they want to or because they respect you.Level 2 - PermissionAt level 2 people follow because they want to; in fact they give the leader permission to lead them. At this level a leader can begin to deliver through people. Level 2 requires leaders to treat people with respect, creating a positive working environment. At level 2 solid and lasting relationships begin to be built and this level creates the foundation for level 3.Level 3 - ProductionThis level is all about motivating people to GTD (i.e. Get Things Done). In fact level 3 is all about GTD, leaders become ‘change agents’, work gets done, morale improves the leaders are more able to tackle problems.Level 4 – People DevelopmentThis level is about creating and developing new leaders. This is done by investing in the team and helping people to grow. The more leaders raise new leaders the more lives they change. The result of this is that people follow a leader for what they have done for them. Leading at level 4 is all about focusing and investing in other people and making it a priority. Level 5 – The Pinnacle According to Maxwell this is the uppermost level and the one that is the most difficult to achieve. This level of leadership requires the leader to be dedicated to growing themselves and others as for future leadership roles. Level 5 leaders create opportunities; a legacy. People follow level 5 leaders for who they are as individuals and also for what they represent.Transformational and Transactional LeadershipDefinition of Transactional LeadershipA leadership style whereby the objectives and goals are predefined and the leader use reward and punishment to motivate his followers is known as Transactional Leadership. It focuses on improving the current situation of the organisation by framing the steps and controlling the organisational?activities. The basic purpose of this type of leadership is to revamp the existing corporate culture and to enhance current policies & procedures.In 1947, the style was first proposed by Max Weber followed by Bernard Bass in the year 1981.In this leadership style, the leader uses his authority and responsibility as his power as well as the style has a formal approach. Prize and penalties are the two primary tools employed by the leader to inspire his subordinates i.e. if an employee achieves the target within the stipulated time he is given?initiative for his work, whereas if the task is not completed within the required time, then he will be penalised for the same.Definition of Transformational LeadershipThe style of leadership, in which the leader uses his influencing power and enthusiasm to motivate his followers to work for the benefit of the organisation. Here, the leader seeks the requirement for a change in the existing organisation culture, gives a vision to his subordinates, incorporates mission and implement the change with the dedication of his followers.In transformational leadership, the leader acts as a role model and as a motivator too who offers vision, excitement, encouragement, morale and?satisfaction to the followers. The leader inspires his people to increase their abilities and capabilities, build up self-confidence and promotes innovation in the whole organisation.James MacGregor Burns first proposed the concept of this leadership style in the year 1978. The main idea of this leadership style is that both?the superior and subordinate work for lifting each other for improving their morale and motivation.? ComparisonsBasis for ComparisonTransactional LeadershipTransformational LeadershipMeaningA leadership style that employs rewards and punishments for motivating followers is Transactional LeadershipA leadership style in which the leader employs charisma and enthusiasm to inspire his followers is Transformational Leadership.ConceptLeader lays emphasis on his relation with followers.Leader lays emphasis on the values, ideals, morals and needs of the followers.NatureReactiveProactiveBest suited forSettled EnvironmentTurbulent EnvironmentWorks forDeveloping the existing organisational cultureChanging the existing organisational cultureStyleBureaucraticCharismaticHow many leaders are there in a group?Only one More than oneFocused onPlanning and ExecutionInnovationMotivational ToolAttracting followers by putting their own self-interest at first placeStimulating followers by setting group interest as a priority I let go of who I am, I become who I might beLoa tsuTransformational Leaders:According to John Maxwell author and leadership expert an example of a Transformational leader can be found as early as the late 18th Century in the figure of William Wilberforce. Maxwell’s rationale for his thinking is as follows Wilberforce allowed himself to be transformed outside of the popular norms of his timeWilberforce found and then connected with others who has a common purposeHe tapped into his creativity in order to win and persuade others to accept the changes he was proposing. An example of this was the partnering with Wedgewood and the creation of the Wedgewood medallion depicting a man ‘shackled’ stating ‘Am I not a man and a brother’. He then convinced Wedgwood to put the image on everything that they created from bracelets to service ware.Wilberforce was prepare and in fact paid a great price to transform his culture and help lead the charge against slavery. He began his campaign for change in 1787, 20 years later Parliament ‘outlawed’ the slave trade but not slavery. It took another 26 years of campaigning until Britain finally outlawed slavery in 1833. William Wilberforce died 3 day after the Act was passed.The leadership gap between transactional and transformational leaders is the gap between doing and changing. The gap for individuals on this event and events like it,is the gap between knowing and changing. Many people can attend a learning event or a series of learning events but the differences that creates reform and change is when those individuals take up the challenge and use the information that they have been given in order to help create change.Take some time to think about modern day transformational leaders what do they do and how do they make a difference?Douglas McGregor Theory X and YMore commonly seen as a motivational model the McGregors X Y theory of management fits very well with the concept of Transactional and Transformational Leadership. Below you will find a brief description of the theory, a diagram to help explain it and a questionnaire to establish which style of manager you have and which style of management you prefer.Theory x ('authoritarian management' style)The average person dislikes work and will avoid it he/she can.Therefore most people must be forced with the threat of punishment to work towards organisational objectives.The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.Theory y ('participative management' style)Effort in work is as natural as work and play.People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of mitment to objectives is a function of rewards associated with their achievement.People usually accept and often seek responsibility.The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.In industry the intellectual potential of the average person is only partly utilised.?‘X-Y Theory’ Questionnaire Score the statements (5 = always, 4 = mostly, 3 = often, 2 = occasionally, 1 = rarely, 0 = never) To indicate whether the situation and management style is ‘X’ or ‘Y’: My boss asks me politely to do things, gives me reasons why, and invites my suggestions. I am encouraged to learn skills outside of my immediate area of responsibility. I am left to work without interference from my boss, but help is available if I want it. I am given credit and praise when I do good work or put in extra effort. People leaving the company are given an 'exit interview' to hear their views on the organisation. I am incentivised to work hard and well. If I want extra responsibility my boss will find a way to give it to me. If I want extra training my boss will help me find how to get it or will arrange it. I call my boss and my boss's boss by their first names. My boss is available for me to discuss my concerns or worries or suggestions. I know what the company's aims and targets are. I am told how the company is performing on a regular basis. I am given an opportunity to solve problems connected with my work. My boss tells me what is happening in the organisation. I have regular meetings with my boss to discuss how I can improve and develop. Total score 60-75 = strong Y-theory management (effective short and long term)45-59 = generally Y-theory management16-44 = generally X-theory management0 -15 = strongly X-theory management (autocratic, may be effective short-term, poor long-term) To indicate whether the person prefers being managed by ‘X’ or ‘Y’ style: I like to be involved and consulted by my boss about how I can best do my job. I want to learn skills outside of my immediate area of responsibility. I like to work without interference from my boss, but be able to ask for help if I need it. I work best and most productively without pressure from my boss or the threat of losing my job. When I leave the company I would like an ‘exit interview’ to give my views on the organisation. I like to be incentivised and praised for working hard and well. I want to increase my responsibility. I want to be trained to do new things. I prefer to be friendly with my boss and the management. I want to be able to discuss my concerns, worries or suggestions with my boss or another manager. I like to know what the company's aims and targets are. I like to be told how the company is performing on a regular basis. I like to be given opportunities to solve problems connected with my work. I like to be told by my boss what is happening in the organisation. I like to have regular meetings with my boss to discuss how I can improve and develop. Total score 60-75 = strongly prefers Y-theory management 45-59 = generally prefers Y-theory management 16-44 = generally prefers X-theory management 0 -15 = strongly prefers X-theory management Most people prefer ‘Y-theory’ management. These people are generally uncomfortable in ‘X-theory’ situations and are unlikely to be productive, especially long-term, and are likely to seek alternative situations. This quick test provides a broad indication as to management style and individual preference, using the ‘X-Y Theory’ definitions. This assessment tool was developed by Alan Chapman and you may use it personally or within your organisation provided copyright and is acknowledged. Not to be sold or published. . ? alan chapman 2002. Based on Douglas McGregor’s XY-Theory. 1. ATTITUDE2. BEHAVIOUR3. IMPACT4. RESULTSYour attitude is at the heart of everything you doYour attitude informs your behaviour, which drives the impact that creates results, which, in turn, shapes your attitude.Choosing the right attitude is critical to your ability to get the most from your experiences and in becoming high performing. Developing a leadership attitude is not about changing our personality – personality and attitude should not be linked, personality influences the types of experiences we choose to have, our attitude is how we choose to experience them and can change from one situation to the next.If you think you are too small to have impact, try going to bed with a mosquito in the room!Anna RoddickThink about your current attitude towards the housing sector, senior managers and progressing in the organisation. Does your current attitude help or hinder the process. What needs to change and what needs to be enhanced in order for you to create your dream career? ................
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