Transformational and Transactional Leadership: A Critical Analysis

This presentation provides a critical analysis of transformational and transactional leadership styles, their benefits, elements, and potential effects. It also discusses the difference between the two styles and provides recommendations for implementation.

HUMAN RESOURCE
MANAGEMENT

Bestway Group
• Second largest multinational
company of UK.
 Having business in
various sectors such as
cement, pharmacy and
wholesaler (Avolio and
Yammarino, eds., 2013).
Logo of Bestway

INTRODUCTION
 The ability of appealing and motivating people through their
effective communication skill and creative approach (Breevaart
and et. al., 2014).
• Leadership involves various skills for effective results. In
order to empower individuals who is leading either at top,
middle or bottom layer.

Transformational Leadership
 It is an approach where leader is associated with subordinated
of an organisation in order to identify changes, involve
creativity and execute them (Dumdum, Lowe, and Avolio,
2013).
• It helps to improve performance by implement various
mechanism such as by connecting with follower, collecting
identity of firm for motivating staff, by raising interest and
handling challenges.

Transformational Leadership
process

Use of Transformational Leadership
Use of transformational leadership are following:
• Taught to manager.
 Enhance leadership skills with time (Hamstra and et. al., 2014).
• Develop leadership qualities in others.

STEPS OF IMPLEMENTATION
 In transformational leadership approach, rewards are provided to
employees (Hamstra and et. al., 2014).
 It can be considered as compensation in one group and symbol of
status in another group.
 It can cause trouble for company in future.

Elements of Transformational
Leadership
Key elements of leadership approach are:
• Idealised influence: In this method, leader is considered as a
role model by followers.
 Inspirational motivation: method is based on the controlling
process such as monitoring and supervising performance of
employees (Kark and Shamir, 2013).

Cont...
• Intellectual Stimulation : This element of leadership process
is considered by mentor in order to find solution of problems.
 Individual consideration : In this approach connection
between leader and followers is considered (Wolfram and
Gratton, 2014).

Transformational leadership process
This process can be implemented in three steps:
 Transformational leadership involves techniques in order to
create input (Keskes, I., 2014).
• Changes are implemented on behaviours of employee.
• Values are created on the basis of competitive advantageous.

Potential effect of Transformational
Leadership
Potential effect of transformational leadership are following:
•Maximises human assets.
•Innovative product delivery strategies.
 Difficult implementation (Samad and et. al., 2015).

BENEFITS
Benefits of using transformational leadership are following:
• Vision: Through this they can communicate vision of
organisation to employees. Through this image of gaol became
clear.
 Inspiration: By inspiring employees passion and enthusiasm of
employees can be maintained (Bateh and Heyliger, 2014).
Through this company is able to optimise their performance.

Cont...
 Detail challenges: Through this leadership approach,
challenge and issues are clear to leader. They can able to
select right direction in order to move towards goal (Ejere
and Abasilim, 2013).
 Reality: Through this firm is able to identify logic and reality
before falling into traps.

Transactional Leadership
• This leadership approach is used in order to monitor or
supervise activities.
 Through this method leader is able to promote agreement by
providing both rewards and punishments on the basis oh their
performance (al-Dumur and al-Awamilah, 2013).

Transactional Leadership
process

USE OF TRANSFORMATIONAL
LEADERSHIP STYLE
Use of transactional leadership are following:
 Help company in order to reach their goal (Carr, 2014).
 Motivation
 Shortcomings

Elements of Transactional Leadership
Key elements of leadership approach are:
•Supervision
•Performance
•Rewards

Potential effect of Transactional
leadership
 Potential effect of transactional leadership are following:
•Frequent participation of team leader, if problem encounter.
Task are monitored in order to ensure performance.
 Clear role and task are assigned (Buble, Juras and Matić., 2014).

BENEFITS
Benefits of transactional leadership are following:
• Improve coordination of team in order to perform task.
• Projects are completed on time with low budgets (Hamstra and
et. al., 2014).
• Rewards and incentives are based on situation.

Critical analysis of Transformational
leadership
Positive aspect of using transformational leadership are following:
• It is particularly used by leader by implementing set of
attributes.
 While using this skills of leader get enhance with time
(Nanjundeswaraswamy and Swamy, 2014).
• Along with this it enable leader to provide training to employees
in order to improve their skills.

Cont...
Negative aspect of using transactional leadership are following:
 It is highly influenced leadership approach.
 Due to different level of organisations motivation level of
employees get affected (Saleem, 2015).
 Lack of information can cause failure , due to which every
stage should be monitored by leader.

Critical analysis of Translational
leadership
Positive aspect of using transactional leadership are following:
 It is effective approach, in order to meet goal and objective of
organisation in efficient manner.
 Availability of necessary resources help the employees in order
to achieve their goal (Aritz and Walker, 2014).
 By using this approach employees are motivated, by providing
rewards and incentives.

Cont...
Negative aspect of using transactional leadership are following:
 In order to achieve specification, behaviour of leader can be
difficult to understand for employees
 Cross- culture team can cause exceptional problems (Rahimi,
Khezri and Niknafs, 2016).
 Diversity of team also cause problems in expectation meeting.

Difference between Transactional
and Transformational Leadership
Transactional
•Suited for settled firm.
•Emphasis on followers
relationship.
•Focus on planning and
execution process.
 Reactive in nature
(Keskes, 2014).
Transformational
•Suited for turbulent firm.
•Emphasis on values, idea and
creativity.
•Focus on innovation and
creativity.
•Proactive in nature.

CONCLUSION
 Company can implement both transactional and transformational
leadership approach.
 Leader should have skills and experience so that they can
effectively implement according to situation.
 Before hiring leader, Best way should ensure about his qualities
and ability.

Recommendation for Best way
 They can implement any leadership approach.
• But transformational is more advantageous for them.
•Through this leader and sub ordinates work as collectively
identity (Hamstra, M. R. and et. al., 2014).
•Various innovative and creative can be implemented due to
which, firm is able to expand with new opportunities.
•Along with this skills of employees also get enhance with time.

REFERENCES
Books and Journals
Avolio, B. J. and Yammarino, F. J. eds., 2013. Introduction to, and
overview of, transformational and charismatic leadership. In
Transformational and Charismatic Leadership: The Road Ahead 10th
Anniversary Edition (pp. xxvii-xxxiii). Emerald Group Publishing
Limited.
Breevaart, K. and et. al., 2014. Daily transactional and transformational
leadership and daily employee engagement. Journal of occupational
and organizational psychology. 87(1). pp.138-157.
Online
Bestway Group 2017. [Online]. Available through:
<http://www.bestwaygroup.co.uk/>. [Accessed on 10th June 2017].