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 dayQuarter 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

The question is

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What is the answer for Growth and transformation?

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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:

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1.The leader and follower relationship:Transformational leadership needs deeper understanding of each other’s 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

4 key elements for success

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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.

Transformational leadership is shifting paradigms

it is about large scale Change.

It’s 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 doesn’t just demand results. He motivates his people, increases their morale and helps them achieve peak performance.

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WHAT IS TRANSFORMATIONAL

LEADERSHIP?

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Transformational leader behaviour

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Transactional leaders brilliantly make things happen as per goals that are set by himGoal setting is always top downThey 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 balanceThe leader is shouting boss and everyone agrees in front of him only to defy once the leader out of the scene

What does Transactional leaders do

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• 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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Men or women?

• 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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One Final Word