Transactional vs. Transformational Leadership Styles at Amazon

This essay delves into the application of transactional and transformational leadership theories within Amazon, highlighting how these styles contribute to the company's success. Transactional leadership at Amazon involves motivating employees through monetary benefits and incentives, fostering a sense of fairness and driving focused effort towards specific organizational goals. Transformational leadership, on the other hand, focuses on encouraging innovation, motivating employees to achieve self-satisfaction, and fostering a positive work environment with clear values. By implementing both leadership styles, Amazon enhances productivity, promotes employee engagement, and builds a strong company culture, ultimately leading to significant growth and development. The analysis concludes that understanding and implementing these leadership theories are crucial for achieving organizational goals and fostering a motivated workforce.

Transactional and
Transformational Theory For
Amazon

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Transactional leadership..............................................................................................................3
Transformational leadership........................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Leadership is the ability where a leader has a responsibility to guide and direct the group
of people from which they can be able to achieve their set goals and targets. A great leader Jeff
Bezos who is a leader of Amazon set the best living example of the transformational and
transactional leadership style (Miller and Miller, 2020). The report will illustrate the importance
of leadership style and highlights the transactional and transformational leadership theories of the
Amazon.
MAIN BODY
Leadership style is the method of directing the people and motivating them for achieving the set
goals and targets. The Amazon follows two particular leadership theories which helps the
company to grow and develop at successful manner.
Transactional leadership
Transactional leadership style refers as where the leader the motivates their employee and staff
members by providing them monetary benefits and packages such as incentives, bonus, health
care insurances, holiday packages such more. The leader of Amazon also use this leadership
style to motivate their employee from which the employee can be able to feel satisfied and can
put their best efforts in working which will provide the beneficial outcome to the Amazon (Reza,
2019). This leadership style helps the company to create a sense of fairness among the employee
from where the employee focus on the particular working areas of the company and can deliver
the beneficial results to the organization. Using this leadership style, the leader of Amazon is
able to achieve the great success for the company.
Transformational leadership
Transformational leadership style defines where a leader is responsible for encouraging,
motivating and innovate from which it will help them to shape and grow the success of the
company. The leadership style have one particular purpose of motivating the employee so that
they can feel satisfied and can deliver the effective results and outcome. The leader of Amazon
follows and implement the transformational leadership style which helps them to increase the
company productivity and growth efficiently (Bako, 2018). A leader of Amazon believes that
motivating the employee will enable the growth and development of the company and also
provide the self-satisfaction to the employee. Even, it also fosters the positive working
environment with clear values and builds the company culture by encouraging the employee with

definite manner. Implementing this form of leadership style allows the Amazon to increase their
productivity by motivating the employee and staff people of the company. With the
implementation and practising the transformational leadership style ensure that the employee
needs a definite motivation and encouragement from which they can provide the better results.
CONCLUSION
The report has concluded the detailed about the leadership style and its theories which helps the
individual to understand and implement at their organization from which they can be able to
achieve their set goals and targets. It has included the focus on the transactional and
transformational theory of leadership which has been utilized by the company from which they
can be able to obtain the effective results and outcome.

REFERENCES
Books and Journals
Bako, M., 2018. Different leadership style choices, different generations. Prizren Social Science
Journal. 2(2), pp.127-143.
Miller, L. and Miller, A.F., 2020. Innovative work behavior through high-quality
leadership. International Journal of Innovation Science.
Reza, M.H., 2019. Components of transformational leadership behavior. EPRA International
Journal of Multidisciplinari Research. 5(3), pp.119-124.