Jumat, 14 Oktober 2011

Transactional and Transformational Leadership

James MacGregor Burns writing in his book ‘Leadership’ was the first to put forward the concept of “transforming leadership”.
To Burns transforming leadership “is a relationship of mutual stimulation and elevation that converts followers into leaders and may convert leaders into moral agents”. Burns went on to also further define it by suggesting that:
“[Transforming leadership] occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality…”

Burns draws upon the humanistic psychology movement in his writing upon ‘transforming leadership’ by proposing that the transforming leader shapes, alters, and elevates the motives, values and goals of followers achieving significant change in the process. He proposed that there is a special power entailed in transforming leadership with leaders “armed with principles [that] may ultimately transform both leaders and followers into persons who jointly adhere to modal values and end-values” .
Burns sees the power of transforming leadership as more noble and different from charismatic leadership, which he terms ‘heroic’ leadership, and executive or business leadership. Despite this it is surprising that most of the application of Burns’ work has been in these two types of leadership.
Bernard Bass developed Burns’ concept of transforming leadership in ‘Leadership and Performance Beyond Expectations’ into ‘transformational leadership’ where the leader transforms followers – the direction of influence to Bass is thus one-way, unlike Burns’ who sees it as potentially a two-way process. Bass, however, deals with the transformational style of executive leadership that incorporates social change, a facet missing from Burns’ work. For Bass ‘transformational leaders’ may:
• expand a follower’s portfolio of needs
• transform a follower’s self-interest
• increase the confidence of followers
• elevate followers’ expectations
• heighten the value of the leader’s intended outcomes for the follower
• encourage behavioural change
• motivate others to higher levels of personal achievement (Maslow’s ‘self-actualisation’).
Tichy and Devanna in their book ‘Transformational Leadership’ built further on the work of Burns and Bass in organisational and work contexts. They described the hybrid nature of transformational as “… not due to charisma. It is a behavioural process capable of being learned”.
Bass writing with a research colleague Avolio suggested that “Transformational leadership is closer to the prototype of leadership that people have in mind when they describe their ideal leader, and it is more likely to provide a role model with which subordinates want to identify”.
Transactional leadership has been the traditional model of leadership with its roots from an organisational or business perspective in the ‘bottom line’. Stephen Covey writing in ‘Principle-Centred Leadership’ suggests that transformational leadership “… focuses on the ‘top line’” and offers contrast between the two (a selection being):
Transactional Leadership

• Builds on man’s need to get a job done and make a living
• Is preoccupied with power and position, politics and perks
• Is mired in daily affairs
• Is short-term and hard data orientated
• Focuses on tactical issues
• Relies on human relations to lubricate human interactions
• Follows and fulfils role expectations by striving to work effectively within current systems
• Supports structures and systems that reinforce the bottom line, maximise efficiency, and guarantee short-term profits

Transformational Leadership

• Builds on a man’s need for meaning
• Is preoccupied with purposes and values, morals, and ethics
• Transcends daily affairs
• Is orientated toward long-term goals without compromising human values and principles
• Focuses more on missions and strategies
• Releases human potential – identifying and developing new talent
• Designs and redesigns jobs to make them meaningful and challenging
• Aligns internal structures and systems to reinforce overarching values and goals
Both kinds of leadership are necessary. Transactional leadership has remained the organisational model for many people and organisations who have not moved into or encouraged the transformational role needed to meet the challenges of our changing times.
“The goal of transformational leadership is to ‘transform’ people and organisations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behaviour congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building”
“The goal of transformational leadership is to ‘transform’ people and organisations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behaviour congruent with beliefs, principles, or values; and bring about changes that are permanent, self-perpetuating, and momentum building”

Hooper and Potter (1997) extend the notion of transformational leadership to identify seven key competences of “transcendent leaders”: those able to engage the emotional support of their followers and thus effectively transcend change.
1) Setting direction
2) Setting an example
3) Communication
4) Alignment
5) Bringing out the best in people
6) The leader as a change agent
7) Providing decision in a crisis and on the ambiguous

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