2.5.

Contemporary Views on Leadership

(Transformational, Transactional, and Servant Leadership Theories)

2.5.1. Transactional Leadership

Meaning
 Lies in a transaction: two persons exchanging goods, services, or other
things in order to realize their independent objectives.
 Requires providing resources and rewards in exchange for motivation,
productivity, and task accomplishments.
 The power and reward depends on the follower’s performance:
 A high task performer = The leader positively reinforces
appropriate behaviors to the follower.
 A low task performer = The leader must exercise legitimate
and coercive power while positively reinforcing appropriate
behaviors
Negative Aspects of Transactional Leadership
 Leader's direct approach prevents followers from reaching full
potential and only interacts when something goes wrong.
Positive Aspects of Transactional Leadership
 Leadership is responsive, motivated by rewards or punishment,
and hands-off to deal with current issues.
2.5.2. Transformational Leadership
Meaning
 Transformational leadership helps leaders and followers unite in pursuit
of higher goals that bring significant change and represent their
collective interests.
Components of Transformational Leadership
 Idealized Influence
 Inspirational Motivation
 Intellectual Stimulation
 Individualized Consideration
Transformation Leadership Behavior
 Identifying a vision
 Providing an appropriate model
 Fostering the acceptance of group goals
 High performance expectations
 Providing individualized support
 Intellectual stimulation

1|Page
Strengths/weaknesses of Transformational Leadership
Strengths:
 Leadership is effective in the long run, focusing on positive
change.

Weakness:
 Leadership lacks conceptual clarity, Multi-factor Leadership
Questions as a measurement, Elitist and antidemocratic,
potential to be abused.
2.5.3. Servant Leadership
 Servant leadership seeks to serve others, not take control.
 Servant leadership shares power, puts needs of others first, helps people develop.
Characteristics of Servant Leadership
 Listening
 Empathy
 Healing
 Awareness
 Persuasion
 Conceptualization
 Foresight
 Stewardship
 Commitment to the growth of people
 Building community
Strengths/weaknesses of Servant Leadership
Strengths:
 Philosophy is a long-term way of life and work that encourages
continuous quality improvement and positive contributions to
society.

Weakness:
 Servant leadership is a way of life that requires time to build
trust among followers, and some believe it is paternalistic and a
myth.
2.5.4. Charismatic Leadership
 Charismatic leaders use charm and personal magnetism to
promote their vision.
2.5.5. Visionary Leadership
 Visionary leadership creates a realistic, credible, attractive
vision of the future.

2|Page
2.5.6. Team Leadership
 Team leadership is more effective due to complementary role behavior Solo
leadership having advantages in the workplace due to faster decision-
making.
2.5.7. Leadership Styles Based on Authority
 Bureaucratic Leadership
 Autocratic Leadership,
 Democratic Leadership And
 Laisser-Faire Leadership Styles
2.6. Competencies for leading the organization
 Social Intelligence (SI)
 Conflict management
 Decision-making
 Sharing a compelling vision
 Change management
 Interpersonal skills
 Emotional Intelligence (EI)
 Being a good coach & being trustworthy
 Inclusiveness
 People management
 (Learning) Agility
 Industry knowledge/expertise
 Managing yourself
 Courage
 Organizational citizenship behavior
2.7. Good Vs Bad leaders.
 Good leaders encourage team members to give more, while bad leaders
make them feel like they are running behind.
 Good leaders focus on inspiring team members to their full potential by
focusing on their unique talents and skills, but bad leaders forcing them
into roles that are not suited to them.
 Good leaders accept challenges and encourage collaborative dialogue.
 Good leaders leverage shared leadership for more success, while bad
leaders miss out on this benefit.
 Great leaders take responsibility for their team, even if they are personally
responsible.
 Good leaders prioritize results over rigid processes.
 Good leaders identify future leaders and help them develop leadership
skills.

3|Page
 UNIT THREE

3. THE CHALLENGE AND IMPACT OF LEADERSHIP

DEVELOPMENT
3.1. The Challenges of Leadership development
Leadership Development Programs (LDPs) have evolved from formal, structured, one-off
training courses to more process-based, experiential programs with an emphasis on
personal development and self-directed learning. The following are the main challenges:

 Dealing with Change

 Developing Leaders
 Engaging Learners
 Delivering Training on a Consistent Basis
 Tracking Skills Application
 Instilling Conflict-Management Skills
 Demonstrating Value to Leadership
 Quantifying Training Effectiveness
 Improving Learning Effectiveness
 Adapting Training to a Varied Audience

4|Page