The paper "Effective Leadership Based on a Transactional Relationship " is a good example of management coursework. Effective leadership is achieved by matching a leader’ s style to the existing setting. Thus, there is no single leadership style that fits all settings or all organisations. There are many types of leadership styles, and while one style may be suitable for one organisation or a certain management level in an organisation, it may not be appropriate for another organisation or a different level of management even within the same organisation. With this in mind, this paper discusses whether effective leadership is based on a transactional relationship in which leaders provide followers with tangible returns and incentives in return for compliance and productivity.
The paper thus examines the attributes of transactional leadership and assesses how they relate to effective leadership. It is noted that transactional leadership also has its weaknesses and thus it is not the only determinant of effective leadership. Meaning of effective leadership Since effective leadership is contingent on by synchronising a leader’ s style to the organisational setting, it means that for a person to become an effective leader, he or she must learn when to utilise different styles of leadership so as to reach their maximum potential as well as that of his or her followers (Stanfield 2009, p.
53). However, Stanfield (2009, p. 53) also notes that most effective leaders use one particular style and only deviate from that style when it is necessary and beneficial. Therefore, it is possible that if a leader chooses to adopt the transactional style of leadership, he or she will endeavour to pursue it most of the time.
Worth noting is the fact that effective leaders are those who exercise leadership by inculcating vision, meaning and belief in their followers (Uhr 2003, p. 131). Therefore, in regard to the gist of this paper, if a leader chooses to adopt transactional relationships in an organisation, he or she will be anticipating such relationships to fulfil a certain role in the organisation. Thus, the question is, does transactional leadership translate to effective leadership? This question can be answered by analysing what transactional leadership entails. Transactional leadership and effective leadership According to Ivey and Kline (2010, p.
247), transactional leadership is characterised by leader-follower relationships, whereby leaders offer their followers tangible incentives and returns in exchange for compliance and productivity. That is, leaders and followers in transactional relationships exchange things of value in order to advance both the leaders’ and followers’ agenda. In a transactional relationship, followers perform in compliance with the will and direction of their leaders and the leaders positively reward the followers’ efforts (Riaz & Haider 2010, p. 30). Moore (2007, p. 25) argues that transactional leaders operate by recognising what actions their followers must take so as to attain the desired outcomes of performance, and then enabling that action.
They enable followers to act by clarifying tasks and role requirements, appreciating the needs and wants of their followers, and clarifying how their needs and wants will be met once they accomplish the required outcomes. In this sense, therefore, the reward is offered to the follower as compensation for achieving what is desired by the leader. As Xirasagar (2008, p. 602) put it, transactional leadership is an influence process aimed at exchanging valued rewards for performance.
It is important to analyse how these exchanges between leaders and followers impact leadership.
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