Transactional Leaders

11 Key excerpts on "Transactional Leaders"

• 

  No longer available |Learn more

  Concepts & Theories of Leadership

  • (Author)
  • 2014(Publication Date)
  • University Publications

    (Publisher)

  ____________________ WORLD TECHNOLOGIES ____________________ Chapter- 4 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 clarify a sense of duty with rewards and punishments to reach goals. Three types of leaders: charismatic leaders brave risk takers. Transactional Leaders more common than other leaders. transformational leaders conform to network and coworkers in the best fashion in order to benefit the organization while still sharing ideas. Transactional Leaders believe that people are motivated by reward or punishment. These leaders 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. Transformational Leadership Transformational leadership is defined as a leadership approach that causes change 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 his followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the mission and the collective identity of the ____________________ WORLD TECHNOLOGIES ____________________ organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimise their performance.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Leadership through Trust

  Leveraging Performance and Spanning Cultural Boundaries

  • Gus Gordon(Author)
  • 2017(Publication Date)
  • Palgrave Macmillan

    (Publisher)

  Psychologists who study leadership note that the cognitive component of leadership is something of a black box that can make lead- ership characteristics and traits opaque (Hambrick et al. 1993). Nevertheless, over time various academic theories of leadership have developed. What follows is a quick overview of the major theories. The purpose is to provide the reader with some academic perspective of what researchers have developed as theoretical underpinnings of leadership. Transactional LeadersHIP The early leadership research was almost exclusively focused on transac- tional behaviors. Burns (1978) indicated that transactional behaviors are based on exchange processes in which the leader enables a subordinate to earn rewards based upon the subordinate’s efforts. Transactional lead- ers articulate what is expected from their followers, provide constructive feedback on followers’ progress toward objectives, and explain how they will be rewarded (Vera and Crossan 2004). By goal-setting for employees, Transactional Leaders are able to con- nect subordinate behaviors to desired outcomes and rewards. It is thought that in this way a leader can effectively provide a roadmap to fol- lowers enabling them to reach individual, as well as organizational goals. It is commonly understood that a Transactional Leadership para- digm establishes three constructs: contingent reward, active manage- ment by exception and passive management by exception (Judge and Piccolo 2004). The contingent rewards construct is the process of set- ting and clarifying goals for which the subordinate is rewarded if goals are achieved. Active management by exception is a process whereby the leader is constantly monitoring the subordinates’ progress toward pre- established goals. On the other hand, passive management by exception is a philosophy that requires the leader to intervene only if subordinate behavior has led to a possible exception with regard to achievement of pre-established goals.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Event Leadership

  Theory and Methods for Event Management and Tourism

  • Emma Abson(Author)
  • 2021(Publication Date)
  • Goodfellow Publishers

    (Publisher)

  They create learning opportunities for their followers. Individualised consideration The leader establishes strong relationships with their followers. They behave in caring and supportive ways. Table 3.1: Transactional and transformational leadership dimensions Transactional Leadership Transactional Leadership involves an exchange or transaction between leader and follower. These exchanges involve direction and specific requirements from the leader, with personal rewards if the follower successfully completed a task and punishments if they do not (Bass & Bass, 2008; Rosenbach & Taylor, 2006). Transactional Leaders are typi-cally defined as those who ensure that their followers are able to clearly understand the role they need to play in achieving an organisation’s 3: Leader/follower perspectives 49 outcomes and in order to be rewarded; and are reactionary, taking action when things aren’t going to plan. In addition, transactional lead-ers take the values, needs and motivations of followers as being static and unchanging. Transactional Leadership is therefore focussed on self-interest and as such, it is often considered as managerial leadership (Rosenbach & Taylor, 2006). Refer back to Chapter 1 for that discussion on the difference between management and leadership if you need clar-ification here. Consider the nature of mega sporting events such as the Olympics, which involve using vast numbers of volunteers to support the delivery of the event. Why do these people volunteer, what do they get out of it? Research shows that they are either intrinsically motivated or extrinsi-cally motivated. Alexander et al., (2015) describe the volunteering pro-cess as the formation of a symbiotic, mutually beneficial relationship which, if done correctly, will ensure ongoing support.

  Sign up to read

  Learn more about book
• 

  eBook - ePub

  Effective Leadership and Organization's Market Success

  • Ila Sharma, Rahul Dhiman, Vimal Srivastava(Authors)
  • 2023(Publication Date)
  • Routledge India

    (Publisher)

  et al., 2008).

  Moving over to relationship of transformational leadership style with new product development and hence market success reveals that there is significant relationship between both of them. Transformational leadership improves the followers’ performance and enables them to develop to full potential (Kuhnert, 1994 ). To conclude, individuals who demonstrate transformational leadership have strong inner values and ideals, and they are efficient in motivating people to attain improved results i.e. market success.

  8.1.3 Transactional Leadership

  Transactional Leadership is a leadership style that develops respect for the role of its supporters employing incentives and punishments, which is also known as managing leadership. According to Burns (1978) , Transactional Leadership occurs when a leader approaches followers for the purpose of exchange, whereas transformational leadership requires more than just the compliance of followers (Kuhnert and Lewis, 1987 ). In contrast to transformational leadership, Transactional Leaders don’t want to alter the future; they just want to maintain things the same. These leaders take into account the work of the followers to discover defects and differences. This sort of leadership is successful in crises and emergencies and when projects need to be conducted in particular.

  Transactional Leaders put focus on procedures. Such leaders rely on contingent rewards (also known as positive strengthening) or contingent penalties (also known as contingent negative reinforcement). Contingent incentives are provided when the defined objectives are fulfilled to keep subordinates working at a decent pace at different times. Contingent incentives (for example, suspension) apply when the quality of performance falls or when duties are ineffective. Contingent fines are often handed out on an exceptional basis. There are active and passive pathways within management (Kalsoom, Khan and Zubair, 2018

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  The SAGE Handbook of Leadership

  • Alan Bryman, David Collinson, Keith Grint, Brad Jackson, Mary Uhl-Bien, Alan Bryman, David Collinson, Keith Grint, Brad Jackson, Mary Uhl-Bien(Authors)
  • 2011(Publication Date)
  • SAGE Publications Ltd

    (Publisher)

  First, they work with their team members to develop clear, specific goals, and ensure that workers are rewarded for meeting those predetermined goals. Secondly, rewards and promises are exchanged for worker effort, and such leaders are responsive to the self-interest of THE SAGE HANDBOOK OF LEADERSHIP 60 their subordinates if these needs can be met while getting the work done. Thirdly, because transac-tional leadership encourages a close connection between goals and rewards in the form of specific exchanges, workers can as a result not be moti-vated to give anything beyond what is clearly specified in contracts or through bonus systems. This can be particularly troubling for knowledge workers, as it is more difficult to specify complete job descriptions in advance for such workers (Bryant, 2003). Transactional Leadership is implic-itly dyadic. Therefore, it resonates with ‘leaders’ and ‘followers’ at the individual level of analysis. It does not resonate with the social processes of relational leadership (Uhl-Bein, 2006) at the higher levels of analysis. According to Bass (1985) and Conger and Kanungo (1998), all leaders exhibit certain charac-teristics of both transformational and Transactional Leadership styles, but individual leaders tend to emphasize one of the styles more than the other. Conger (1999) suggested that both styles are in fact required to manage knowledge effectively. In order to effectively manage the creating, sharing, and exploiting of knowledge in an organization, leaders must address the particular demands of managing knowledge at various levels (Yammarino & Dubinsky, 1994; Yammarino & Spangler, 1998). Individual, group, and organizational levels can require different leadership styles in order for organizations to leverage knowledge into competi-tive advantages (Yukl & Howell, 1999). Knowledge creation occurs primarily at the individual level. Sharing of knowledge occurs mostly at the group level (Nonaka & Takeuchi, 1995).

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Encyclopedia of Group Processes and Intergroup Relations

  • John M Levine, Michael A. Hogg, John M. Levine, Michael Hogg(Authors)
  • 2009(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  930 Transactional Leadership Theories Drawing from earlier research on contingent reinforcement, Bass specified that transactional behaviors include contingent rewards and manage-ment by exception . Contingent rewards include leader behaviors that clarify the rewards that fol-lowers receive when designated objectives and tasks are successfully completed. For example, the manager of a car dealership may attempt to moti-vate salespeople by creating an incentive such that any employee who sells at least six cars per week will receive double commissions for that week. Research shows that contingent rewards (both material and social) help reduce role ambiguity, clarify the task or goal at hand, increase follower satisfaction, and contribute to better performance. Management by exception involves leadership behaviors that actively or passively seek to correct or punish poor performance or problematic fol-lower behavior. In active management by excep-tion, the leader actively attends to followers’ performance to ensure that it meets the necessary rules and standards. If errors, oversights, or viola-tions are evident, the leader engages in corrective behavior or negative reinforcement to rapidly rem-edy the situation. Research suggests that active management by exception is related to higher rat-ings of the leader than is passive management by exception, which involves less direct monitoring of followers. In passive management by exception, leaders intervene to provide correction or punish-ment only when there is an obvious mistake or problem that requires attention. The Multifactor Leadership Questionnaire (MLQ) was developed to measure both transac-tional and transformational leadership behaviors. Because of criticisms regarding its validity, the MLQ has undergone a number of revisions, but concerns are still voiced about its utility. One con-cern is that various transformational behaviors tend to be correlated with transactional behaviors.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Leadership

  The Challenge for the Information Profession

  • Sue Roberts, Jennifer Rowley(Authors)
  • 2013(Publication Date)
  • Facet Publishing

    (Publisher)

  The transformational leader treats relationships with follow-ers in terms of motivation and commitment, influencing and inspiring followers to give more than compliance towards improvement of organiz-ational performance: they encourage commitment, initiative, flexibility and high performance. This is in contrast to Transactional Leaders who enact their relationships with followers in terms of an exchange, giving the followers what they want in return for what the leader desires, on the basis of prescribed tasks to pursue established goals. REFLECTION Here are three questions that might challenge long-standing assumptions: 1 Why do we bind journals? 2 Why do we buy newspapers? 3 What use could we make of CCTV? What would be the reaction in your organization to a junior member of staff who posed one or more such questions? Some writers have aligned transformational leadership with leadership and Transactional Leadership with management (e.g. Bartram and Brown, 2006). 68 LEADERSHIP: THE CHALLENGE FOR THE INFORMATION PROFESSION Castiglione (2006) suggests that the transactional library administrator is assignment and task-oriented, and expects employee compliance. The transformational library administrator, on the other hand, inspires, motivates and facilitates strategic renewal by empowering staff to question old assumptions; they encourage staff to construct a compelling vision of future possibilities for themselves and their stakeholders.

  Sign up to read

  Learn more about book
• 

  eBook - ePub

  Inclusive Leadership

  • Gloria Moss(Author)
  • 2019(Publication Date)
  • Routledge

    (Publisher)

  Comment: the respondent’s opinion and experience is that Transactional Leaders can greatly reduce the productivity, creativity and growth of individuals. This particular respondent works for an organisation that has shifted from an ‘analyser’ to a ‘prospector’ strategy, with norms of leadership moving from that of ‘producer’ to a that of a ‘leader’ as defined by Håkonsson et al, 2012. Both types of leadership place the emphasis on delegation, but as we saw in Chapter 2 , a ‘leader’ style will work best within a context of an organisation that has an ‘explore’ rather than ‘exploit’ strategy, and a ‘low uncertainty avoidance’ rather than ‘high uncertainty avoidance’ context.

  Senior sales leader in a recently privatised organisation working under the sales director whose views are shown above

  “The monitoring and correcting element that is part of Transactional Leadership gives rise to micro-management and a blame culture as well. In this way, instead of being picked up for the positive things that you have done, you are picked up for the things that went wrong. An organisation with Transactional Leadership is very much a manager-led organisation in which managers tell employees what to do so the organisation loses a lot of employees’ thought processes since they are merely acting on what they have been told to do.

  At one point, I worked for a director that made people so scared of him that people did all that they could to please him. At one point, though nervous about doing this, I put an idea forward only to have it dismissed. I realised that what he says goes and that I just needed to fit around this person. Then I moved into a creative agency within the same organisation until I moved into the Sales area that I am in now. At that stage, Sales was run on a command and control basis and then things started to change.”

  Comment: according to this person’s experience, Transactional Leadership can block the creative flow of ideas within an organisation. The respondent is working in the same organisation as the immediately preceding respondent, so working for an organisation that has moved from an ‘analyser’ to a ‘producer’ and then ‘prospector’ mode following privatisation of the organisation (see ‘Strategic factors’ in Chapter 2

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Complexity Leadership

  • Mary Uhl-Bien, Russ Marion(Authors)
  • 2011(Publication Date)
  • Information Age Publishing

    (Publisher)

  Tyler and Blader (2005) label these two contrasting approaches “command and control” versus the “self-regulatory” approach to leadership. An analo-gous distinction can be made between transactional and transformational leadership. Transactional Leadership is oriented toward satisfying subordi-nate’s self-interest through appropriate transactions with the work envi-ronment, and transformational leadership is grounded in higher moral values and ethics which can transform both organizations (Yukl, 2002) and the identities of followers (Lord, Brown, & Freiberg, 1999; Shamir, House & Arthur, 1993). This chapter addresses a third, more general, aspect of leadership that is equally important. It may complement transformational and transac-tional leadership, amplifying their effects, or it may be effective in cir-cumstances when neither transformational nor Transactional Leadership would work well. Specifically, in this chapter I propose that an important aspect of leadership that has not yet been systematically discussed in the leadership literature pertains to how leadership activities can shape the emergence of individual and interpersonal structures in organizations. It is argued that this form of leadership may be especially important in com-plex systems in which many structures and processes emerge spontane-ously from the local interaction of individuals (or units). LEADERSHIP AND EMERGENCE Although transactional and transformational leadership differ in many fundamental ways, they are similar in that they both focus on the leader as initiating different forms of social organization, and they also emphasize the leader’s vision or value system. Leaders are viewed as having a right to influence followers (Tyler, 1997; Tyler & Blader, 2005) and, even when followers are self-directed, they may identify with the leader’s vision and values or with the organization symbolized by a leader.

  Sign up to read

  Learn more about book
• 

  eBook - PDF

  Encyclopedia of Leadership

  • George R. Goethals, Georgia J. Sorenson, James MacGregor Burns, George R. Goethals, Georgia J. Sorenson, James MacGregor Burns(Authors)
  • 2004(Publication Date)
  • SAGE Publications, Inc

    (Publisher)

  Such [instrumental] trans-actions comprise the bulk of the relationships” (4). The underlying idea, that leadership is an exchange, has been around at least since the early 1970s. The thesis is that the relationship between a leader and followers depends upon a series of trades or bargains that are mutually beneficial and are maintained so long as the benefits to both parties exceed the costs. Burns would characterize these types of exchanges as transactional rather than trans-formational because they do not satisfy higher-order needs and they do not result in the elevation of both the leader and the led to a more evolved state of being. Burns’s delineation of a more transcendent type of leadership that would satisfy those higher-order needs was his critical contribution to leader-1566 ——— Transformational and Visionary Leadership ship theory. What Burns added, then, is not so much the notion of leadership as an exchange but the idea that certain forms of leadership create a cycle of ris-ing aspirations that ultimately transform both leaders and their followers. Burns’s conceptualization of these two leadership forms has profoundly influenced the thinking of many scholars in the leadership field. For example, in the 1980s—a period of great competitive unrest in the global business world—Burns’s ideas appealed to management theorists grappling with the twin issues of organizational change and empowerment. The transformational leader appeared to speak to both those issues, because transformational leaders were concerned both with transforming the existing order of things and with directly addressing follow-ers’ needs for meaning and personal growth. BEHAVIORAL COMPONENTS OF A TRANSFORMATIONAL LEADER Following the publication of Leadership, the scholar Bernard Bass dedicated a significant portion of his career to elaborating upon the Burns model.

  Sign up to read

  Learn more about book
• 

  eBook - ePub

  Inspirational Presence

  The Art of Transformational Leadership

  • Jeff Evans(Author)
  • 2009(Publication Date)
  • Morgan James Publishing

    (Publisher)

  This transformational leadership is what supplies the ability to change quickly and readily. As stated earlier, all organizations contain the changestability dilemma and have the capacity to be stable and to change, given the proper focus. In comparing transactional and transformational leadership, we are not saying that one is better than the other. Both are required, and both have their appropriate time and a unique purpose for the organization.

  Figure 4.3: The Transformational Axis

  The issue for most organizations is that the transactional style has overshadowed the transformational style. As people focus more on the core process delivery and their performance monitoring, they build more and more capacities and practices that are transactional in nature.

  The interesting thing about transformational leadership is that when applied to an organization, it can have the impact of increasing the stability, or it can have the impact of fostering change. When you lead through inspiration and have a commitment to support choice in people, you help connect people to what is important. If it seems more important to the people to support stability at that particular time, then they will. Leaders must ensure that the opportunities to change are present in the system and that choice in the work system is supported.

  This sort of informed empowerment allows flexibility and adaptability in organizations. If you think about an organization as pursuing a goal in its environment, you know that the environment moves. Depending on the business and the environment, that movement can be really fast at times. Every organization has its own time cycle in which the organization needs to flex to stay on target with the goal direction. More traditional models had a leadership and management function of looking at the strategy and deciding when it was time to change direction. This is the old maritime model of having a captain on the bridge of the sailing vessel who is plotting the course and calling for all course changes. The captain called for the sails to be set and controlled the technical operation of the ship. In a more dynamic environment, this must be set across a number of people, who work in concert to decide when changes need to be made.

  Sign up to read

  Learn more about book