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1 KUNDAN VERMA 11407

TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP

leadership style is the manner and approach of

providing direction, implementing plans, and motivating people the three major styles of leadership are1- Authoritarian or autocratic 2- Participative or democratic 3- Delegative or free Reign

autocratic
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delegative
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democratic
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Transformational leadership
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leadership approach that causes change in

individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders transforms the environment and the people in it focuses on building an appropriate context and on enhancing the relationships of people within the system

Two major components of transformational

leadershipa) charismatic leadership b) servant leadership

charismatic leadership-

vision strong leadership trait strong self belief activist mindset

Servant leadership-

create atmosphere of partnership active listener subordinate development

characteristics
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idealized influence

inspirational motivation
intellectual stimulation individualized considerations

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idealized influence- provides vision and sense of

mission, instills pride, gains respect and trust inspirational motivation- communicates high expectations, uses symbol to focus effort, expresses important purposes in simple ways intellectual stimulation- promotes intelligence, rationality, and careful problem solving individualized considerations- gives personal attention, treats each employee individually, coaches, advises

Transactional leadership
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classical management

focus on the leader and the follower


requires appropriate role behavior requires clear goals and appropriate instructions transactional leadership focuses on the task

characteristics
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contingent reward

management by exception(active)
management by exception(passive) laissez- faire

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o contingent-contracts exchange of rewards for effort,

promises rewards for good performance, recognizes accomplishments o management by exception(active)-watches and searches for deviations from rules and standards, takes correct action o management by exception(passive)-intervenes only when standards are not met

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laissez-faire-abdicates responsibilities, avoids

making decisions

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Transactional
leadership is responsive

Transformational
leadership is proactive

and its basic orientation is dealing with present issues leaders rely on standard forms of inducement, reward, punishment and sanction to control followers

and forms new expectations in followers leaders are distinguished by their capacity to inspire and provide individualized consideration, intellectual stimulation and idealized influence to their followers

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Transactional
leaders motivate

Transformational
leaders create learning

followers by setting goals and promising rewards for desired performance leadership depends on the leaders power to reinforce subordinates for their successful completion of the bargain

opportunities for their followers and stimulate followers to solve problems leaders possess good visioning, rhetorical and management skills, to develop strong emotional bonds with followers

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Managers

leaders

focus on things do things right plan organize direct control follow the rules

focus on people do the right things inspire influence motivate build shape entities

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what is your leadership style-Transactional or

transformational?

summary
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transformational leadership is more strongly

correlated than transactional leadership with higher productivity, lower employee stress and burnout and higher employees satisfaction

references
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Roesner, J. (1990). Ways women lead. Harvard

Business Review. November - December. Kotlyar, I. & Karakowsky, L. (2006). Leading Conflict? Linkages Between Leader Behaviors and Group Conflict. Small Group Research, Vol. 37, No. 4, 377-403 Kotlyar, I., & Karakowsky, L. (2007). Falling Over Ourselves to Follow the Leader. Journal of Leadership & Organizational Studies, Vol. 14, No. 1, 38-49

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