TRANSFORMATIONAL / TRANSACTIONAL LEADERSHIP

Question 1

Generell

Answer 1

• Used in times of change in a company
• Goal is to transform and empower followers and give them skill
• Includes assessing followers’ motives and satisfying their needs
• Moves followers to accomplish more than is actually expected from them
• Leaders act as charismatic role models and social architects

Transformational Leadership:

Intense relation between leader and follower with primary aim to rais intrinsic motivation and create a sense for morality

Transactional Leadership:

Is the exchange between the leader and the follower - for delivering ideas, the follower receives benefits

Question 2

7 Leadership Factors

4 Transformational Factors (1-4) (4 Is): Bring your followers beyond expectation

Answer 2

1. Idealized Influence: or charisma. Leaders who act as inspiring role models with high moral and ethical standards are deeply respected and provide a sense of mission -> vision on mission
2. Inspirational Motivation: Communication of high expectations (linked to energizing function of Goal-setting) and inspiring through motivation -> establishing team spirit and group cohesion
3. Intellectual Stimulation: Generating creativity, innovation power and stimulation to engage in careful problem solving -> boosting team spirit and group cohesion
4. Individual Consideration: Leader acts as coach and advisor, provides positive climate, listens very carefully to followers needs -> Information power: Uses Delegation to help followers grow

Question 3

7 Leadership Factors

2 Transactional Factors (5&6): Contract and performance

Answer 3

5. Contingent Reward: Exchange process between leader and follower -> salary goes up if performance increases

6. Management-by-exception: Constructive criticism

• passive: finding mistakes because of evaluation, intervening if something goes wrong
• active: looking for mistakes of the followers

Question 4

7 Leadership Factors

1 Laissez Faire Factor (7)

Answer 4

7. Absence of real leadership: Leader is delaying decisions, does not give feedback, or help followers develope

Question 5

Strengths and Weaknesses of the Transformational/Transactional Leadership Approach

Answer 5

Pros:

• Intuitively appealing
• Process-focused
• Broader view of Leadership that accounts for psychological factors
• Strong emphasis on followers values, morals an emotional respect
• Substantial evidence for effectiveness
• Sustainable way of problem solving

Cons:

• Lacks conceptual clarity (overlap between four Is)
• More research needed
• Treats leadership as a personality trait, rather than a lernable behavior
• Can be elitist and antidemocrativ
• Potential to be abused