This essay delves into the comparison of two prominent leadership theories: transformational leadership and Leader-Member Exchange (LMX) theory. It begins by introducing both concepts and highlighting their distinct characteristics. The essay argues that transformational leadership holds more significance in contemporary business environments due to its adaptability to market changes and its focus on a broad range of stakeholders. It then proceeds to compare and contrast the advantages and disadvantages of each theory, supported by real-world examples, such as the leadership styles at Netflix and Apple. The essay examines how transformational leadership promotes employee engagement and considers various stakeholder interests, contrasting it with LMX's focus on leader-follower relationships. The conclusion favors transformational leadership, emphasizing its suitability for modern organizations and its role in fostering sustainable growth by addressing social responsibilities.
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