Difference Between Leaders And Managers: Transactional And Transformational Leadership

Transactional and transformational leadership

Discuss about the Difference Between Leaders and Managers.

Transactional and transformational leadership: critically assess these leadership styles and comment on which may be more superior.

Transactional leadership is one which relies on the leaders’ position to influence those being led. It is used by most managers as it focuses on the primary management activities such as planning, controlling and coordinating. Transactional leaders rely on their formal authority and position in the organization to get their subordinates to act in the desired manner. Managers who use the transactional leadership style define the rewards for expected performance (Bertocci 2009, p49). Transactional leadership is also known as management by exception because, after the leader sets expected results, there is no interference unless the goals are not being met. In operating this kind of leadership style, flexibility is of the essence. Managers here are required to monitor the performance of their subordinates and make interventions by changing the set goals and missions of the organization. In addition to flexibility, this style of leadership relies on other factors in order to be effective. First, rewards and punishments should have a positive effect on employees, that is, they have to be motivated by them. Second, employees must be willing to submit and obey the rules of the leader. This leadership style also assumes that employees are not self-motivated and therefore they require to be closely monitored and controlled so that they can work as expected. A major advantage that is related to transactional leadership is that leaders using this style have a formal relationship with their subordinates and thus the relationship is not permanent, freeing it from emotional bonds.

Transformational leaders can help their followers achieve results over and above those that were planned by offering intrinsic rewards, in contrast to external rewards given by transaction leaders (Bertocci, 2009 p48). The author identified transformational leaders as proactive as they continually look for performance improvement opportunities. They also challenge their followers by encouraging them to be innovative. They are more interactive and seek to have those under them share the group’s vision. A transformational leader strengthens his followers by providing them with the tools that they need to achieve their goals. Lastly, transformational leadership is enshrined in the leader as their character and behavior are a model of what is required to achieve the organization’s vision. This leadership style has three main assumptions, of which is that employees will follow a person who inspires them. Vision and passion are important attributes that enable a leader to achieve greatness. Finally, transformational leadership assumes that enthusiasm and energy are the best ways to perform a task. Transformational leadership is tied to the leader hence emotional bonds may negatively affect performance should the leader exit the organization.

Identifying effective leadership styles

It is not outrightly possible to identify which of the two leadership styles is most effective. Bolman and Deal (2008, p345) concur by providing an insight into two prepositions. One holds that good leadership requires qualities such as strength and vision. The other preposition maintains that good leadership is situational and that there is no style that fits all. The transactional leadership style is formal and an easy fit for formal organizations. However, care should be taken when applying it in an organization because it tends to be influenced more by power and politics. Transformational leadership is more revolutionary and is, in essence, a relatively better style of leadership.

What do you think are the most important attributes that a leader should possess? Why in your experience do you believe this? Articulate the implications of these characteristics on leadership development.

I think that a leader should be able to exhibit high esteem and self-confidence. Good leaders are not only confident in themselves but are also able to inspire their followers to be confident. A leader should be able to present ideas concisely and show the logic for their decision. I believe that confidence in a leader is an important attribute as it enables the leader to communicate candidly with those under him. Without confidence, a leader will try to hide his weakness and work too hard to appear perfect.  Leadership development demands that a leader should surround himself with colleagues who will challenge him in a constructive and balanced way.

Leaders should be able to inspire those who work under them. A leader should be able to motivate his followers to reach for performance that is higher and beyond what is expected of them. In this way, employees will achieve intrinsic motivation and will work better without the need for financial incentives. Leaders should inspire and motivate their subordinates as employee motivation is not always tied to high salaries. Organizations which face difficult times should be able to look to their leaders for inspiration. If the leader does not offer any inspiration, the employees will be discouraged, and performance will slump further.

A leader should be accountable to himself and those he leads by taking responsibility for any success as well as failure on his part. Accountability will ensure that the leader applies the same set of standards in his work, as those employed in subordinate’s work. Accountability is an essential element in today’s organizations, and a good leader should inculcate this in his role. The leader should take responsibility and defend his decisions, providing the rationale for each. The organization will then adopt this culture as no one will be above the law. Also, accountability improves performance as it eliminates wastage of time through behavior that is unproductive. In essence, by being accountable from the start, the organization will have the right people on the job, sending a clear indication that the leadership is serious about good performance.

Most important attributes of a leader

Difficult decisions will need to be made in an organization at one point. A good leader is decisive and not afraid to make difficult decisions. In making these decisions, however, all implications should be taken into account and carefully weighed before a decision is made. The performance capability of a leader is enhanced when he is not afraid to make decisions that are unpopular. A leader needs to be able to make the right decisions in difficult times because it is at these times that their leadership ability is needed most. Time may not be on the organization’s side, and the leader should have the confidence to make decisions for the good of the company.

An effective leader can motivate his employees to achieve a high-performance level. A high-performance team can define their purpose in light of an opportunity presented to them (Bolman and Deal 2008 p111). The authors proceed to comment that top managers clarify the team’s charter and give them the flexibility they need in planning how they will achieve the required result. A leader plays a crucial role in the success of this team by articulating the result to the employees. He then steps back and lets the team deliberate on the task at hand and maintains close monitoring. In situations where the team experiences difficulties, a leader steps in to redefine the group’s mission and provide the necessary tools required to achieve the goal.

An effective leader is proactive and visionary, and will hence be able to forecast the workforce requirements regarding skills and experience. The leader should be able to respond to the needs of the group. A good leader can vision the organization as individual constituent parts working together to achieve a common goal. A well-composed team is a recipe for success, and it is the leader’s role to ensure that the team has the right mix. High performing teams also develop the right mix of expertise and specialization. The group can develop problem solving and interpersonal skills that keep the group focused and free from intergroup politics.

The leader can demonstrate accountability and holds himself to question when his directives do not work out as expected. This is an aspect of leadership where the leader leads by example, applying the same standards to his work. Accountability ensures that the leader provides a clear reason for his decisions and takes responsibility for his actions. Similarly, members of a high-performance team borrow the trait of accountability from the leader. Every individual of the team possesses a unique skill for which he or she is assigned a particular role. Members are accountable both as individuals and collectively as a team.

Effective leaders continually assess themselves by taking stock of their strengths and weaknesses. A leader who acknowledges his weakness will be able to delegate some tasks in which he is not good at. A good leader will be able to hire employees who supplement their skills. High performing teams have a commitment to working relationships (Bolman and Deal 2008, p112). The authors point out that these teams identify themselves a member who is best suited to carry out a particular task. Evidently, these teams exhibit some form of self-regulation, minimizing management supervision. The members can agree on some form of binding code to which every member must adhere, failure to which, one would be excluded from the group. A framework of operation exists in the group, which the authors define using the acronym ‘CAIRO’. C is for consults, A-approval, I-informed, and R-responsibility.

List of References

Bertocci, I., David., 2009. Leadership in Organizations: There is a Difference between Leaders and Managers. 1st ed. Maryland: University Press of America.

Bolman, G., Lee and Deal, E., Terrance., 2008. Reframing Organizations: Artistry, Choice, and Leadership. 4th ed. San Francisco: John Wiley & Sons.