Discussion Response

Juan Delduarte 

Transactional and Transformational Business Leaders

 

According to Northouse (2016), a transformational leader changes and motivates individuals to exceed performance potentials through connections. McCleskey (2014) described the transactional leadership approach as the use of gratification exchanges to influence followers to achieve performance objectives. As an example, Jeff Bezos and Elon Musk exhibited transformation and transactional leadership behavior. The two leaders used rewards and inspiration to influence individuals within their respective organization to surpass goals.

 

According to Dev (2018), Bezos foster a corporate culture of excellence to attain a competitive advantage and surpass organizational objectives. Equally, Dev (2018) discussed Bezo’s approach to reward employees for their performance. Similarly, Orton-Jones (2018) described Musk personality as charismatic, inspiring and motivating. Lastly, Orton-Jones (2018) expressed that Musk persuaded followers to achieve success by providing them with a sense of purpose.

 

The Effectiveness of Transformational Leadership

 

As Northouse (2016) noted, transformational leadership is effective because using this

approach leaders provide clear direction and purpose to followers. Additionally, transformational leaders provide followers with a sense of ownership (Northouse, 2016). For instance, without providing a reason a leader directs members of a team to proceed in a different direction. The results are counterproductive and the team does not achieve organizational goals. Instead, had the leader reframed the goal and explained that the new approach represents a disruptive innovation which benefits the organization and its employees, the followers would be supportive of the change (McCleskey, 2014).

 

Potential Negative Consequences of Transformational Leadership

 

Several scholars acknowledge that transformational leadership has drawbacks. To that end, Northouse (2016), expressed that some leaders may negatively influence others for personal rather than organizational gains. Additionally, Northouse (2016) discussed, that transformational leaders’ enthusiasm may lead them to ignore real organizational issues.  As an example, a transformational leader may incorrectly assume that followers are motivated due his influence, missing an opportunity to implement needed changes.

 

 

References

 

Dev K., D. (2018). In competition with oneself: A qualitative inquiry into Amazon’s entrepreneurial culture. Technology Innovation Management Review,8, 5-14. doi:10.22215/timreview/1161

 

McCleskey, J. A. (2014). Situational, transformational, and transactional leadership and leadership development. Journal of Business Studies Quarterly, 5(4), 117–130.

 

Northouse, P. G. (2016). Leadership: Theory and practice (7th ed.). Thousand Oaks, CA: Sage.

Orton-Jones, C. (2018). Hire like Elon Musk: . . . and 14 other ways to attract future leaders. Professional Manager, 42-47.

Kevin Coryell 

While many authors believe that Transformational and Transactional leadership often cross paths and augment each other, there is a true contradiction to the different leadership styles. Transformational leadership is more concerned in the progress and development of the flower and what they can achieve, Transactional is concerned with managing and maintaining the status quo (Odumeru, 2013). Many leaders will practice both at different times in their career as time and situation dictate. Also, there can be drawbacks to transformational leadership. The biggest one of which is a leader that becomes too power hungry (Northouse, 2016, p. 162).

            When this subject came up this week I found it very interesting, because I had been thinking of a transformational leader lately and was wondering what had ever became of this person. The person that I consider a great transformational leader Lech Walesa, the leader of the Union strikes in Poland in the 1980’s that led to the fall of Communist Poland and eventually became President of that country. Lech was a strong, charismatic leader, who through transformational leadership (Northouse, 2016, p. 163) inspired his followers to strike against the only type of government that they knew. He gave them ideas and dreams that eventually led to the establishment of a free country.

            When I thought of a transactional leader, I could not think of anyone else but our current President Donald Trump. As stated above the transactional leadership is not necessarily involved in the development of his follower he is more focused on management. President Trump is the type of leader who surrounds himself with the right people, who will inspire and be charismatic and develop, while he manages the status quo of the country. With President Trump we often see his Management-by-Exception (Northouse, 2016, p. 170). He often manages by correcting and criticizing, offering negative stimulation, instead of positive reinforcement.

            I have found that transformational leadership and transactional leadership are both needed in the business world. The transformational leader, is the leader who inspires the company to move forward, giving them the dream of the future. The transactional leader is the leader who then takes that dream and manages it, so that the company doesn’t grow too fast without the proper foundation of managing what they have. The idea leader will exemplify equal amounts of both traits. However, I have never met that leader.

 

 

Northouse, P. (2016). Leadership:Theory and practice. Thousand Oaks, CA: Sage.

Odumeru, J. (2013). Transformational vs. transactional leadership theories: Evidence in leaderhip. International Review of Business Research, 355-361. Retrieved from http://irmbrjournal.com/papers/1371451049.pdf