mission.
Transactional
V Transformational S.
Leadership is responsive
Leadership is proactive
Works within the organizational culture
Works to change the organizational culture culture by implementing new ideas
Employees achieve objectives through rewards and punishments set by leader
Employees achieve objectives through higher ideals and moral values
Motivates followers by appealing to their own self-interest !"
Motivates followers by encouraging them to put group interests #rst $"
Management-by-e%ception& Management-by-e%ception& maintain the status 'uo( stress correct actions to improve performance. performance. )"
*ndividualized *ndividualized consideration& consideration& Each behavior is directed to each individual to e%press consideration and support. )" *ntellectual stimulation& +romote creative and innovative ideas to solve problems. )"
What is ,ransformational Leadership ow /ew *deas +roduce *mpressive 0esults +osted /ovember 123 145) in Leadership is Learned 6pdated Learned 6pdated 7ctober 843 1452 by +amela 9pahr
,ransformational leadership inspires people to achieve une%pected or remarkable results. *t gives workers autonomy over speci#c jobs3 as well as the authority to make decisions once they have been trained. 9ome of the basic characteristics of transformational leadership are inspirational3 in that the leader can inspire workers to #nd better ways of achieving a goal( mobilization3 because leadership can mobilize people into groups that can get work done3 and morale3 in that transformational leaders raise the well-being and motivation level of a group through e%cellent rapport. ,hey are also good at con:ict resolution. ;ll of these traits make transformational leadership a good #t for many types of business. 0ead more about transformational leadership& •
,ransformational leadership de#ned
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istory of transformational leadership
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E%amples of transformational leadership and famous 'uotes
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;dvantages and disadvantages of transformational leadership
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=ene#ts of transformational leadership
,ransformational leadership de#ned ,ransformational leaders are sometimes call 'uiet leaders. ,hey are the ones that lead by e%ample. ,heir style tends to use rapport3 inspiration3 or empathy to engage followers. ,hey are known to possess courage3 con#dence3 and the willingness to make sacri#ces for the greater good. ,hey possess a single-minded need to streamline or change things that no longer work. ,he transformational leader motivates workers and understands how to form them into integral units that work well with others. >i?erences between transformational leadership and other leadership styles ,here are marked di?erences between transactional leadership and transformational leadership.
Transformational leaders specialize in: •
Working to change the system
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9olving challenges by #nding e%periences that show that old patterns do not #t or work
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Wanting to know what has to change
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Ma%imizing their teams@ capability and capacity
Transactional leaders do the following: •
Work within the system
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9tart solving challenges by #tting e%periences to a known pattern
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Want to know the step-by-step approach
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Minimize variation of the organization
;nother way to put it& ,ransactional is a AtellingB style3 while transformational is a AsellingB style. istory of transformational leadership ,he term Atransformational leadershipB was coined by sociologist Cames D. >ownton in 5$8. Leadership e%pert Cames =urns de#ned transformational leaders as those who seek to change e%isting thoughts3 techni'ues and goals for better results and the greater good. =urns also described transformational leaders as those who focus on the essential needs of the followers. E%amples of transformational leadership ,ransformational leaders e%cel in a variety of sectors. ere are notable business leaders who used the transformational style.
William Edwards Deming William Edwards >eming is known as the father of statistical 'uality control. ;fter earning a doctorate in mathematics and physics at Fale in 51G3 he spent most of his career working or consulting for the 6.9. government. >uring World War **3 >eming taught statistical process control techni'ues to military production workers. ;fter the war ended3 the 6.9. >epartment of the ;rmy sent >eming to Capan to study agricultural production and related problems. e convinced Capanese oHcials of the potential for industrial uses of statistical methods. >eming@s goal was to have Capan become a world industrial power in #ve years. Capan did it in four. >eming was asked to do the same thing for 6.9. manufacturing #rms3 but his methods did not take root until the 5G4s.
Peter Drucker
+eter >rucker was a professor and management consultant among other things. e predicted some of the 14th-century@s biggest changes3 such as the Capanese rise to a world economic power3 the age where people would need to learn in order to keep their jobs or get ahead3 and the importance of marketing and innovation. e coined the term Aknowledge worker.B >rucker continually called for balanced management3 which called for a balance between short-term needs and long-term plans3 as well as pro#tability and other elements of business. e was very interested in how to mesh innovation and entrepreneurship. e felt that entrepreneurship was a vehicle of innovation. Entrepreneurship was not just high technology3 but high tech was a vehicle for change3 in attitude3 values3 and behavior. ,he entrepreneur systematically looked for change3 responded to them and took advantage of opportunities as they present themselves.
Ross Perot . 0oss +erot started his career as a salesman for *=M. *n the 5!4s he started his own company3 Electric >ata 9ystems IE>9J3 one of the #rst businesses that built and serviced computer systems for other companies. *n contrast to *=M3 +erot trained his workers to do whatever needed to be done for a customer without waiting for approval. ,here was a strong bias toward action. *n the beginning3 +erot shunned strategic planning. 7ver the ne%t few years3 however3 he hired military oHcers who could take orders and give orders. +erot@s slogan was AKo3 do.B *f an employee took credit for someone else@s work3 they were out the door. ,he motto of +erot@s company at one point was AWe bring order to chaos.B
ohn D. Rockefeller Cohn >. 0ockefeller was the founder of 9tandard 7il. *t started as a single oil re#nery and grew to a huge company. Much of the company@s growth came through ac'uisitions. =ut3 0ockefeller also spent a considerable amount of time streamlining the organization as it grew. 0ockefeller built his company@s early reputation by guaranteeing the 'uality of 9tandard@s kerosene. e was known for his organizational tactics and for using disciplined strategies. 7ne of the reasons for 0ockefeller@s success was he could align his company with one simple vision3 then he held everyone accountable for their part in making that vision happen. *n business3 transformational leadership is often the most e?ective leadership style. ,ransformational leadership 'uotations
Edwards Deming: A; bad system will beat a good person every time.B Peter Drucker: A*f you want something new3 you have to stop doing something old.B Ross Perot: A+unishing honest mistakes sti:es creativity. * want people moving and shaking the earth and they are going to make mistakes.B ohn D. Rockefeller: AKood leadership consists of showing average people how to do the work of superior people.B ,ransformational leadership style re'uirements ere are some of the characteristics of transformational leaders& •
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Dery well-organized and e%pect their followers to be creative ,eam-oriented and e%pect that followers will work together to create the best possible results 0espected3 and in turn respects followers ;cts as coach of the team. e or she provides training and motivation to reach the desired goals
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0esponsible for their team3 but also instills responsibility into team members
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Engenders respect through rapport and a personal in:uence
;dvantages and disadvantages of transformational leadership ,ransformational leadership works well in organizations where change is needed. ,ransformational leadership is not the right #t for new organizations where no structure e%ists.
Transformational leadership pros: •
E%cellent at communicating new ideas
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Kood at balancing short-term vision and long-term goals
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E%perience building strong coalitions and establishing mutual trust
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,hey have integrity and high emotional intelligence Iempathy with othersJ
Transformational leadership cons: •
*ne?ective in initial stage or ad-hoc situations
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0e'uire an e%isting structure to #%
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=ad #t in bureaucratic structures
=ene#ts of transformational leadership 7ne of the best uses of this leadership style is in an organization that is outdated and re'uires serious retooling. *t is also a perfect match for a small company that has big dreams and wants to change and adapt to get there. *n both of these e%amples3 the board of directors can bring in a transformational leader who will change the structure of the organization and also motivate the current workers to buy into the new direction.
!nspirational "oti#ation: ,he foundation of transformational leadership is the promotion of consistent vision3 mission3 and a set of values to the members. ,heir vision is so compelling that they know what they want from every interaction. ,ransformational leaders guide followers by providing them with a sense of meaning and challenge. ,hey work enthusiastically and optimistically to foster the spirit of teamwork and commitment. !ntellectual Stimulation: 9uch leaders encourage their followers to be innovative and creative. ,hey encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them. ,he leaders focus on the AwhatB in problems and do not focus on the blaming part of it. ,hey have no hesitation in discarding an old practice set by them if it is found ine?ective. !dealized !n$uence: ,hey believe in the philosophy that a leader can in:uence followers only when he practices what he preaches. ,he leaders act as role models that followers seek to emulate. 9uch leaders always win the trust and respect of their followers through their action. ,hey typically place their followers needs over their own3 sacri#ce their personal gains for them3 ad demonstrate high standards of ethical conduct. ,he use of power by such leaders is aimed at in:uencing them to strive for the common goals of
the organization.
!ndi#idualized %onsideration: Leaders act as mentors to their followers and reward them for creativity and innovation. ,he followers are treated di?erently according to their talents and knowledge. ,hey are empowered to make decisions and are always provided with the needed support to implement their decisions.