Organizational Management – Types of Leadership

Leadership is an essential concept in organizational management. Leaders play a
significant role in setting strategic goals while motivating the employees to work towards
achieving them. There are different types of leadership styles adopted by different leaders. The
three major types of leadership are servant, transformational, and transactional. This article will
examine transformational and transactional leadership.
Just like the name suggests, transformational leadership focuses on transforming the
company’s beliefs and culture. The leader provides the employees with goals and tasks to push
them out of their comfort zones and work towards achieving the company’s goals and objectives.
Besides, the leader sets deadlines and initiates more challenging goals and responsibilities as
employees pick up the pace. Transformational leadership is characterized by motivating
employees and losing sight of individual learning curves (Stephen & Timothy, 2018). It is
encouraged for the growth-minded companies which provide the proper training to see the
employees through their new responsibilities.
Transactional leadership, on the other hand, focuses on rewarding the employees. Such
leaders provide an incentive plan that motivates employees to master their obligations, boosting
individual productivity. In an organizational setup, for example, those working in the marketing
department might receive a bonus for sending twenty marketing emails. Transformational leaders
can only offer a bonus if the employee’s work results in an increased number of subscribers.
Therefore such leadership helps encourage bare minimum work as the employees get to know
the worth of their efforts (Stephen & Timothy, 2018). Transactional leadership is characterized
by using incentive programs to motivate employees while remaining consistent with
organizational goals.

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Although transformational and transactional leadership differs in various aspects, they are
among the most effective leadership styles applied in an organizational setup. The main goal for
the two types of leadership is to motivate the employees to increase their productivity, which
contributes to achieving organizational goals and objectives.

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References

Stephen P., & Timothy A., (2018). Essentials of organizational behavior. Pearson.