Business Academic Skills
An effective leadership is very critical for the success of any organization. This is important because the leaders are the individuals who guide the organization towards its goals and its objectives. An effective leadership ensures that the organization moves constantly on the path where it can achieve the target it has set for itself. And in cases where the organization seems to have lost its way, effective leaders can only make sure that the organization takes the right path again and achieves its objectives. There are many examples across the globe which show that a great organization in absence of quality leadership struggle to maintain their good performance and sometimes even get finished and forgotten. Thus it is very important that the leaders and managers understand the characteristics of different leadership styles (transactional and transformational) and their impact on the organization so that they can be used by the leaders as and when required (Hargis, Wyatt & Piotrowski 2011, p. 53). The essay also mentions the examples of some transformational leaders and how they attempted to transform their organizations in order to remain a going concern which the organizations are supposed to be. The leaders must adopt the different leadership styles according to the demand of situation.
Leadership can be majorly categorized in two styles- Transactional and Transformational. Both the types of leadership styles have their importance for the organization. A transactional leadership is the one where the leaders try to manage the performance of the employees by use of rewards and penalties. The employees who work better than the expectation of the leaders are awarded with various rewards like increase in monetary compensation or promoted in the ranks of organization. On the other hand the employees who don’t meet the expectation of the management have to face penalties like no hikes in salaries or given low profile work. Transactional leadership is important. This type of leadership is useful in conditions where the processes of the organization are already effective and there is no more possibility of improvement and where the goals and targets are clearly defined for the organization. Such a kind of leadership style ensures that the efficiency of the performance is highest in situations where the business environment is not volatile and the organization is not undergoing through turmoil (Antonakis, Avolio & Sivasubramaniam 2003, p. 273). It can also be inferred that this type of leadership is more effective on employees who are at lower level of the organization and take routine decisions for the organization because at this level the employees work in a more stable environment and there is less scope of innovativeness.