Leadership Theories: Transformational, Shared, and Evaluation

This essay provides a comprehensive analysis of leadership theories, focusing on transformational and shared leadership styles. It begins with an introduction to leadership and its significance in organizational management, followed by detailed explanations of both transformational and shared leadership theories, including their key characteristics and real-world examples. The essay then offers a comparative analysis, highlighting the differences in power distribution, communication styles, and employee motivation between the two theories. An evaluation section assesses the suitability of each leadership style, concluding with a recommendation for the more effective approach based on the principles of employee satisfaction, teamwork, and decision-making processes. The essay underscores that, while both styles have their merits, shared leadership is more suitable for the business context, emphasizing its benefits for achieving organizational goals. The essay references several sources to support its claims.

RUNNING HEAD: LEADERSHIP
Communication
Leadership Theory

LEADERSHIP 1
Contents
Introduction......................................................................................................................................2
Leadership........................................................................................................................................2
Leadership Theory.......................................................................................................................2
Transformational leadership theory..........................................................................................2
Shared leadership theory..........................................................................................................3
Comparative analysis.......................................................................................................................4
Evaluation........................................................................................................................................5
Conclusion.......................................................................................................................................5
Bibliography....................................................................................................................................7
Bibliography....................................................................................................................................9

LEADERSHIP 2
Introduction
The report is based on ‘Leadership Theory’. Leadership refers to the ability of an
individual to guide individuals, teams or an organization towards the achievement of the goals. A
leadership theory provides an understanding of the meaning of leadership. Some of the key
leadership theories are Transformational theory and Shared leadership (Antonakis, 2017).
The first section focuses on the ‘Transformational theory’. Similarly, the second section
emphasizes the ‘Shared leadership theory’. The next part includes a comparative analysis of both
theories. It also provides an evolution based on the suitable leadership theory for enabling high
discipline. The key aim of the report is to pour light on the crucial leadership theories. Moreover,
it provides a chance to upgrade my understanding based on the given title.
Leadership
It is one of the significant concepts in management. It denotes the universal traits that a
leader should adopt. It is the potential to influence the behavior of other human resource. It can
only be applied in a group of individuals. The key aim of leadership is to motivate and mould the
behavior of the individuals for the achievement of a goal. It is a situation-based process
(Antonakis, 2017).
In the business organization, a manger is considered as a leader. He is responsible for
motivating the employees for achievement of organizational goal and objectives. However, a
particular leadership style should be applied only after analyzing the whole situation (Schein,
2010).
Leadership Theory
The leadership theories are developed to differentiate the various leaders as per their
characteristics. Each theory focuses on specific traits and behavior patterns. An individual should
adopt suitable traits to enhance personal leadership qualities. The discussion mentioned below
focuses on two leadership theories (Nohria, 2010).

LEADERSHIP 3
Transformational leadership theory
A transformational leader believes in working enthusiastically. They act as role models
and encourage their followers to be innovative and creative in their work process. They also
reward them for their creativity and innovation. They welcome the ideas given by their
followers. They lay prior attention in developing team spirit. They believe in correcting their
subordinates in private. They often sacrifice their needs for their followers. They gain the trust of
their followers via their actions. They focus on a common goal and show a high degree of ethical
conduct (Gilbert, 2016). Thus, from the discipline (Business) context, following two points are
examined:
1. Role model: A transformational leader acts as an ideal for his subordinates.
2. Welcoming new ideas: This leader focuses on innovativeness and welcomes creativity
by the subordinates (Odumeru, 2013).
Example: A ‘Steve job’ is the owner of a globally renowned company named ‘Apple’. It
is a U.S. based organization located in 24 countries (Macrumors, 2019). He is one of the
recognized leaders and perceived as a transformational leader. This is because he challenges his
employees to think beyond the box and bring new ideas. He motivates them to develop
innovative products. Despite his employees, he was a mentor for many individuals. It is analyzed
that Steve jobs follow both the key aspect of transformation leader. Thus, Steve Jobs sets a fine
example of Transformational leader (Johannsen, 2014).
Shared leadership theory
As per this theory, a leader shares power within the set of individuals. He/she does not
favor centralization of power in the work process. He/she believes in decentralization of power.
They believe in achieving group goals by leading one another. He/she favors mutual decision
making with the followers. They assist in developing individual empowerment and job
satisfaction. They often facilitate creativity in the work process (D’Innocenzo, 2016). Thus, from
the discipline (Business) context, following two points are examined:
1. Decentralization of power: It states that power should not remain within a few hands.
As per shared leadership theory, power should be shared with a lower level of authority.
It will enable time-saving and will result in gaining satisfied employees.

LEADERSHIP 4
2. Employee empowerment: It states that employees should be specified degree of
autonomy in their work process. The above theory prioritizes employee empowering (Al
Harbi, 2019).
Example: SEMCO is a Brazilian company engaged in the manufacturing process. It has
emerged as one of the successful organization based on Shared leadership. Has adopted
decentralized power in its work process. It attains high trust in its employees and therefore it has
no company rules. It does not have any written policy instead; it is highly accountable for its
employees. In order to gain better outcomes from its employees, it has eradicated rules with
other means to influence employees (Kruse, 2019). This organization has successfully aligned
with the above two key aspects. Thus, SEMCO sets a fine example of shared leadership.
Comparative analysis
The Transformational theory focuses on the vertical distribution of power. As per this
theory, it strictly follows hierarchal flow of authority within the organization. It features
centralization of power in its work process (Ghasabeh, 2015). The Shared leadership theory
emphasizes on specific distribution of power among the subordinates. It features decentralized
power in its operations. In the Transformational leadership, formal communication is followed
between a leader and subordinates. In Shared leadership style, informal communication is
applied in the organization. The former focuses on developing a team spirit whereas the latter
emphasizes on working as a team in the organization (Small, 2011).
As transformational leadership follows the hierarchal distribution of power, therefore
employees usually attain less interpersonal relation with the leader (García-Morales, 2012).
However, this is not similar in case of Shared leadership style. In this style, Employee lacks in
sharing their personal thoughts and ideas. According to this style, employees share high
interpersonal an affectionate relationship with their superiors. This results in easy sharing of
personal thoughts, ideas and grievances with the high authority (Hmieleski, 2012).
Transformational leadership also focuses on motivating employees. However, it does not
prioritize employee motivation. In comparison with Transformational leadership theory, it is
examined that employees are more motivated in Shared leadership style. Similarly, latter attains
more satisfied employees than the preceding one (Wright, 2012).

LEADERSHIP 5
The decision-making process is more time-consuming in Transformational leadership.
This is because, authority is highly centralized and decision-making power lies in few hands
only. In shared leadership style, a leader loses his authority status in the organization. As
authority is shared with the lower-level department, it develops the chance confusion and chaos
in the decision-making process. It often results in poor arrangement of hierarchical structure
within the organization. Additionally, it is recognized that power and responsibility are shared in
shared leadership style. Thus, it develops higher level of interdependence in the employees.
Thus, it is not suitable for a long period. Likewise, higher interdependence can also result in
delayed work and transferring responsibility (Antonakis, 2017). Thus, the analysis is basically
based on two components, distribution of power and employee morale.
Evaluation
As per the above discussion, it is analyzed that the Shared leadership style is more
appropriate than Transformational theory. This is because Shared leadership gave rise to satisfied
employees. Further, decision is taken on mutual understanding. Thus, it removes the chances of
possible errors. It focuses on decentralized power and gives possible opportunities to employees.
As mentioned above, Shared leadership focuses on teamwork. Thus, employees together often
gain new knowledge by working in collaboration. As mentioned previously, employees are
highly satisfied, it develops a positive environment in the organization. Further, employee
retention becomes easier for the organization. It focuses on working as a team and it gave rise to
better bonds (Meindl, 2002). Thus, it suggests that shared leadership advantages exceed their
limitations.
Conclusion
The discussion summarizes the leadership theory. It provides a brief description of
Transformational theory and Shared leadership theory. As per the transactional theory, it is
analyzed that a leader acts as a role model. They are highly inspiring and innovative in their
approach. According to the shared leadership theory, a leader emphasized the decentralization of
power and employee empowerment. From the comparative analysis, it is assessed that both the
leadership style differs in various aspects. Transformational leadership focuses on centralized
authority, slow decision-making and low interpersonal relation. The Shared leadership style

LEADERSHIP 6
features decentralized authority, better interpersonal relation and fast decision making. However,
it is analyzed that both leadership styles has its own benefits and drawbacks. Additionally, both
styles are followed in real-world business organizations. From the evaluation section, it is
analyzed that Shared leadership benefits exceed its drawbacks.
Hence, the above discussion concludes that the ‘Shared leadership style’ is more suitable
than Transformational leadership. It is recommended that organization should adapt ‘Shared
leadership’. However, it must timely check that weather the shared authority is properly availed
or not.

LEADERSHIP 7
Bibliography
Al Harbi, J. A. (2019). Transformation leadership and creativity: Effects of employees
pyschological empowerment and intrinsic motivation. . Personnel Review.
Antonakis, J. &. (2017). The nature of leadership. Sage publications.
D’Innocenzo, L. M. (2016). A meta-analysis of different forms of shared leadership–team
performance relations. Journal of Management, 42(7), 1964-1991.
García-Morales, V. J.-B.-G. (2012). Journal of business research. Transformational leadership
influence on organizational performance through organizational learning and
innovation., 65(7), 1040-1050.
Ghasabeh, M. S. (2015). The emerging role of transformational leadership. The Journal of
Developing Areas, 49(6), 459-467.
Gilbert, S. H. (2016). Gilbert, S., Horsman, P., & Kelloway, E. K. (2016). The Motivation for
Transformational Leadership Scale: An examination of the factor structure and initial
tests. Leadership & Organization Development Journal, 37(2), 158-180.
Hmieleski, K. M. (2012). Shared authentic leadership and new venture performance. Journal of
Management, 38(5), 1476-1499.
Johannsen, M. (2014, March 22). 125 TRANSFORMATIONAL LEADERS: LISTS OF FAMOUS
ONES FROM MANY COUNTRIES. Retrieved from Legacee:
https://www.legacee.com/transformational_leadership/list-of-leaders/
Kruse, K. (2019, September 26). The Big Company That Has No Rules. Retrieved from Forbes:
https://www.forbes.com/sites/kevinkruse/2016/08/29/the-big-company-that-has-no-
rules/#198bc14e56ad
Macrumors. (2019, September 26). Apple Stores. Retrieved from Macrumors:
https://www.macrumors.com/roundup/apple-retail-stores/

LEADERSHIP 8
Meindl, J. R. (2002). Shared leadership in work teams: A social network approach. Instituto de
Empresa.
Nohria, N. &. (2010). Handbook of leadership theory and practiceHandbook of leadership
theory and practice. Harvard Business Press.
Odumeru, J. A. (2013). Transformational vs. transactional leadership theories: Evidence in
literature. International Review of Management and Business Research, 2(2), 355.
Schein, E. H. (2010). Organizational culture and leadership. John Wiley & Sons.
Small, E. E. (2011). Shared leadership in teams. Journal of Personnel Psychology.
Wright, B. E. (2012). Pulling the levers: Transformational leadership, public service motivation,
and mission valence. Public Administration Review, 72(2), 206-215.

LEADERSHIP 9
Bibliography
Johannsen, M. (2014, March 22). 125 TRANSFORMATIONAL LEADERS: LISTS OF FAMOUS
ONES FROM MANY COUNTRIES. Retrieved from Legacee:
https://www.legacee.com/transformational_leadership/list-of-leaders/
Kruse, K. (2019, September 26). The Big Company That Has No Rules. Retrieved from Forbes:
https://www.forbes.com/sites/kevinkruse/2016/08/29/the-big-company-that-has-no-
rules/#198bc14e56ad
Macrumors. (2019, September 26). Apple Stores. Retrieved from Macrumors:
https://www.macrumors.com/roundup/apple-retail-stores/