Transactional and Transformational Leadership in Alba Bahrain

This report evaluates transactional and transformational leadership styles and their potential implementation within Aluminium Bahrain (ALBA). It details the characteristics, advantages, and disadvantages of each style, focusing on how transactional leadership can be effectively implemented to enhance employee motivation through rewards, recognition, and clear communication. The report compares the two leadership techniques, highlighting their complementary strategies and potential impacts on ALBA's work performance, including benefits for intercultural teams. It also provides recommendations for ALBA to optimize its leadership approaches, addressing potential challenges and worker expectations. The study concludes by suggesting strategies to improve the company's overall performance through the effective application of both transactional and transformational leadership styles.

Running head: LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT
LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT
Name of the Student:
Name of the University:
Author note:

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 1
The following report is prepared to evaluate the various aspects of the two most prominent leadership techniques used
in organizations namely transactional and transformational leadership styles and how these two techniques can be
implemented in Aluminium Bahrain, one of the largest aluminium smelter in the Kingdom of Bahrain. The report
takes into account the varied factors and characteristics of transactional as well as transformational leadership
techniques by mentioning their respective advantages and shortcomings. The report further focuses on the areas where
these leadership styles can be implemented on the organizational structure of Alba Bahrain by further providing
suitable recommendations to the company.
EXECUTIVE SUMMARY

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 2
TABLE OF CONTENTS
Introduction ..................................................................................................................................................................... 4
Discussion ....................................................................................................................................................................... 5
Characteristics of Transactional Leadership ................................................................................................................... 6
Ways to Effectively Implement Transactional Leadership ............................................................................................. 8
Factors in which Transactional Leadership can help in Employee Motivation .............................................................. 9
Factors enhancing Employee Motivation...................................................................................................................... 12
Comparison of Transformational and Transactional Leadership .................................................................................. 17
Complementary Strategies of Two Leadership Techniques (Transformational and Transactional Leadership) .......... 22
Where can Transactional Leadership be implemented in ALBA ................................................................................. 27
Potential impacts of Transactional Leadership Application on Alba Aluminium ........................................................ 28
Possible Benefits of Transactional Leadership on ALBA work performance .............................................................. 29
Where can Transformational Leadership be implemented in ALBA ........................................................................... 30

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 3
Role of Transformational Leadership and Intercultural Teams at Alba Bahrain’s Industry ......................................... 32
Benefits of Transactional Leadership............................................................................................................................ 33
Benefits of Transformational Leadership...................................................................................................................... 33
Shortcomings of the two Leadership Styles .................................................................. Error! Bookmark not defined.
Transformational or Transactional Leadership-Which is more effective for Alba Bahrain’s Performance ................. 36
Recommendations for Aluminium Bahrain .................................................................................................................. 37
Conclusion .................................................................................................................... Error! Bookmark not defined.
References ..................................................................................................................................................................... 40

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 4
Transformational leadership is considered as a form of leadership technique that influences transformation
among individuals as well as social systems. It further assists in conception of valuable as well as constructive changes
in the followers with the purpose of uplifting followers to take the role of leaders. Transactional leadership further
regarded as managerial leadership refers to the leadership technique where an excessive dependency of the executive
is seen on factor like rewards, recognitions and punishment in order to accomplish effective work performance from
the subordinates(Dumdum, Lowe and Avolio2013). However, it must be noted that the concepts of transformational as
well as transactional leadership vary largely with the fundamental conjectures of management and inspiration or
motivation. This report sheds the light on various theoretical aspects related to transformational and transactional
leadership styles. The report also focuses on the association of transformational and transactional leadership. It will
further evaluate the several approaches of these two leadership styles by further stating to the ways in which these
approaches can be implemented in the work environment of ALBA. ALBA also known as one of the leading
aluminium smelters across the globe is famous for its technological expertise and unique policymaking (Taib 2015).
INTRODUCTION

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 5
The company gains its popularity through several community related programmes along with social actions
that have contributed to the immense value to endorse and maintain its corporate social responsibilities. This paper
will examine the prospective impact of both of the leadership approach on the CRE faculty of ALBA along with its
expected outcomes of the work performance of the company. In addition to this, this report will throw light on the
association of transactional and transformational styles of leadership along with the risk and challenges ALBA might
experience by executing these leadership styles resulting to the issues faced through workers’ expectations. Lastly, the
paper will try to explore the rate of effectiveness of two leadership approaches on ALBA’s performance by providing
certain strategies, which can be adopted to enhance the performance of the company.
INTRODUCTION

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 6
The transactional leadership approach also regarded as managerial guidance and leadership focuses primarily
on administration, organization and enhancing the potential outcomes of the performance of organizations as well as
groups. The characteristics of transactional leadership involve several aspects.
 Practical- The concept of transactional leadership depends on the interchange that occurs among the leader along with
the employee or substitute in some contexts. Several concepts of rewards and recognition are reliant upon the expected
work performance of the employee (McCleskey2014). The employee generally is appreciated if the expected goal is
achieved.
DISCUSSION
Characteristics of Transactional Leadership

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 7
However, these acknowledgements and rewards can be withdrawn if staffs fail to accomplish the desired level of
performance.
 Resistance in transformation- Leaders adopting transactional approaches firmly disregards any shift to their work
environment. As a result, they rely on steady observation of aims and objects in particular. Leaders executing such
transactional management have the ability to identify both performance as well as non-performance of the employees.
 Directive Approach- A transactional leader acknowledges the involvement of decision-making activities and further
expects subordinates to follow the instructions proposed by them. However, it must be taken into consideration that in
transactional leadership, employees are perceived to adhere to the predetermined standards of the organization.
Characteristics of Transactional Leadership

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 8
Comprehend different initiatives to encourage team members- The achievement of transactional leadership is
greatly dependent on the members of the team by importance of recognitions, it becomes highly essential to
understand the types of recognitions encourage individuals(Van Wart2013).
 Team members should be aware of the reward structure and ways of achieving it.
 Leaders must ascertain that there lies no biasness towards or in opposition to any groups or individuals in particular.
 Further to it, employers must also guarantee that rewards are shortly received after the accomplishment of targets
goals.
Ways to Effectively Implement Transactional Leadership

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 9

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 10
Transactional leadership style emphasizes on the foundation level of Maslow’s hierarchical structure of needs and
desires in order to exert motivation as well as steer achievements. Each of these stages stimulates the behavioural
factors of the employees. After the accomplishment of subordinate levels of the hierarchy, leaders focus on anxiety
related work performance by individually regulating tasks.
Factors in which Transactional Leadership can help in
Employee Motivation

LEADERSHIP STYLES IN A VARYING SITUATIONAL CONTEXT 11
Contingent Rewards Effective Managemnt
By Exemption
Passive Managment With
The Help Of Exception Laissez-Faire