Transactional leadership and its impact on the organizational performance

Adopted from blog.aiesec.org

 

Leadership in the organization is considered as vital factor in the success or failure of organization.

Leadership is distinct as capacity of a individual to pressure a group towards the achievement of goals. The  change  in  leadership  takes  place when  supporters  obtained  necessary  skills  to  achieve organizational goals (Bass, 2008)

The organizational success is dependent upon the ability of Leadership as how to achieve organizational goals. Effective
leadership can enable better participation employee labor force and enhances company performance (Charry, 2012).

It  is  observed  that effective  leadership  has  substantive  impact  on  the organizational  development  and  growth  of  the organization (Bass, 2008)

Generally,  organizational  performance is  measured  in  terms  of  income,  profit,  growth, development  and  expansion  of  the  organization. In the case of organizations, the performance is considered in terms of effectiveness in delivering the services to the public. The transactional leadership is bureaucratic in method and it can be found in business and as well as in public companies. This leadership paying attention  on  developing organization  traditions and  there  in  only  one  leaders  in  the  company (Timothy, Andy & Idowu, 2011).

Transactional leadership model introduced by the Max weber in 1947. This is a kind of  Managerial  Leadership  and  generally  focused  on organization,  supervision  and  performance  of  the staff in the organization. Transactional leadership style emphasized on the rewards and targets among workers and management. This Leadership believes that workers are motivated by reward and punishment and members of staff must comply with the order of the leader and their work strongly be monitored and controlled (Bryant, 2003).

Microsoft owner Bill Gates is a good example of Transactional Leadership. He is CEO of Microsoft Company, who is known as one of richest person in the world due to his successful achievement in his business career.  As  a  transactional  leader,  he often  made  the  visits  to  his  product  teams  to make sure that his team is going on the right direction to achieve organizational goals (Bernard, 2000).

Conclusion

It is normally observed that leadership existed at the  different  levels  of  the  company  and  its common  target  is  to  obtain  the  desired  goals  of  the organization.  It is observed that organizational performance is totally depended on the leadership of the organization.

 

References

Bass B.  M.  (2008).  The  Bass  handbook  of leadership:  Theory,  research,  &  managerial applications (4th ed.). New York, NY: Free Press.

Bernard M.(2000) .,"The Future of Leadership in Learning Organizations" Journal of Leadership & Organizational Studies 7.3 (2000): 19-31.

Bryant, S.E. (2003). The role of transformational and  transactional  leadership  in  creating,  sharing and exploiting organizational knowledge. Journal of Leadership and Organizational Studies, 9(4), pp. 32-44.

Charry, K. (2012). Leadership Theories - 8 Major Leadership Theories. Retrieved February 10, 2017 from http://psychology.about.com/od/leadership/p/leadtheories.html

Timothy  C,  Andy  T,  Victoria  O  and  Idowu  A (2011).   Effects   of   leadership   style   on organizational performance: a survey of selected small  scale  enterprises  in  ikosi-ketu  council development  area  of  lagos  state,  Nigeria. Australian Journal of Business and Management Research Vol.1 No.7 [100-111].