*TRANSFORMATIONAL / TRANSACTIONAL LEADERSHIP*

Question 1

General

Difference between Transformational and Transcational Leadership

Answer 1

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

Transformational Leadership: (strong intrinsic motivation)

• connection between leader and followers that raises level of motivation and morality in both parties

Transactional Leadership: (strong external motivation)

• focus on exchange between leader and followers - promotions for performance

focus on exchange between leader and followers - promotions for performance

Question 2

7 Leadership Factors

4 I’s (Transformational Factors):

Connection that raises motivation and morality

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

2. Inspirational Motivation:

• Communication of high expectations (linked to Goal-setting) and inspiring through motivation
• -> establish team spirit and groupcohesion

3. Intellectual Stimulation (problems solving):

• Generate creativity, innovation power and stimulation to engage in careful problem solving
• -> boosts 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:

Focus on Exchanges between Leaders and their Followers

Answer 3

5. Contingent Reward:

• Exchange process between leader and follower
• -> salary goes up if performance increases

6. Management-by-exception:

• Corrective 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