Leadership Styles 3

Leadership is one of the key drives of performance in an organization. Leaders make all the major decisions in terms of what the company’s purpose is, how employees are compensated and interpersonally treated, what services and products are produced, how they are produced, who the target consumers are, how the product and/or service is delivered e.t.c.

Leadership according to Hollins (1971) is the ability to create ideas and instill into every member of the organization a sense of confidence, loyalty, willingness, satisfaction and cooperation.

TRANSACTIONAL LEADERSHIP
Transactional leadership is a term used to classify a formally known group leadership theories that inquire the interactions between leaders and followers. A transactional leader focuses more on a series of “transactions”. This person is interested in looking out for oneself, having exchange benefits with their subordinates and clarifies a sense of duty with rewards and punishments to reach goals.

Transactional leaders believe that people are motivated by reward or punishments. These leasers give clear instructions to followers about what their expectations are and when those expectations are fulfilled, there are rewards in store for them, and failure is severely punished. They allocate work to subordinates whether resources are there or absent.

A transactional leader influences subordinates by rewards in exchange for their efforts, follows workers closely and takes corrective actions when required, or passively manages employees and takes measures when necessary.

TRANSFORMATIONAL LEADERSHIP STYLE
Transformational leadership is defined as a leadership approach that causes changes in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership enhances the motivation, morale and performance of followers through a variety of...