Friday, January 17, 2014

Trasformational Leadership

In the last byte, we looked at what could be the substitutes for leadership. In today's byte, we look at the concept of Trasformational Leadership and keep differentiating it from transactional leadership.

Transactional Leadership is one in which the leader uses rewards and punishments to make deals with their subordinates. On the other hand, Transformational leaders aspire and excite followers to achieve higher levels of performance.
One often wonders if leadership could only be one of the two forms, however this is not the case - Leadership could be both transformational and Transactional. Transformational leadership could strengthen the effects of transactional leadership. However, even the best of transactional leadership cannot be a substitute for transformational leadership.
Transformational leadership is more effective when compared to transactional leadership since the leader encourages the followers to set goals that are congruent with the followers' own authentic interests and values. This allows the followers to see their work as important and their goals as aligned to their personal aspirations.

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