LEADERSHIP IN BUSINESS

Leadership in Business

Leadership in Business

Executive A

Leadership style of the Executive 'A' is transactional leadership. According to Cox, there are two basic categories of leadership: transactional and transformational. The distinction between transactional and transformational leadership was first made but the idea gained little currency until James McGregor Burns' work on political leaders was published. Burns distinguished between ordinary (transactional) leaders, who exchanged tangible rewards for the work and loyalty of followers, and extraordinary (transformational) leaders who engaged with followers, focused on higher order intrinsic needs, and raised consciousness about the significance of specific outcomes and new ways in which those outcomes might be achieved. The idea of transformational leadership was developed further by Bernard Bass, now Distinguished Professor Emeritus of Organizational Behavior, at the State University of New York, who disputed Burns' conception of transactional and transformational leadership as opposites on a continuum. He suggested instead that they are separate concepts and that good leaders demonstrate characteristics of both. Transformational leadership is the style of leadership a manager uses when he or she wants a group to push the boundaries and perform beyond the status quo or achieve an entirely new set of organizational goals. When Lee Iacocca took the helm of the Chrysler Corporation, his vision and use of transformational leadership were integral to the renewed success of the American automobile company in the face of the almost uncheckable Japanese car industry of the early 1980s.

 Transformational leadership fosters capacity development and brings higher levels of personal commitment amongst 'followers' to organizational objectives. According to Bass transformational leadership “occurs when leaders broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and mission of the group, and when they stir employees to look beyond their own self-interest for the good of the group.” Together, heightened capacity and commitment are held to lead to additional effort and greater productivity

Leader B

The leadership style of Leader 'B' is transformational leadership. As cited preceding individual i.e. Executive 'A' can present the crucial causes of management in numerous distinct ways. (Kouzes & Posner 2007) Leadership trait theory is the idea that people are born with certain character traits or qualities. Since certain traits are associated with proficient leadership, it assumes that if you could identify people with the correct traits, you will be able to identify leaders and people with leadership potential. Most of the time the traits ...