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Transactional or Transformational - A New Emerging Heroic Type?

Transformational Leadership Model - the 4 Leadership Characteristics

First, there is idealized influence, which is sometimes referred to as charisma. This factor defines those behaviours in which the leader acts as a role model, cultivating faith, trust, and respect in the followers. Examples include doing what is right rather than what is most convenient or cost-effective, and making decisions more transparent by explaining the rationale behind the decisions. According to Judge and Bono, idealized influence “...is thought to be the most prototypical of leaders and is often the most important dimension.”

Second, inspirational motivation refers to those acts in which leaders present a vision (i.e., an ideal followers can strive for), set high standards and convince individuals that they can achieve beyond expectations. By raising subordinates’ self-confidence and by being enthusiastic and optimistic about their followers’ work, transformational leaders exhort followers to transcend themselves.

Third, the transformational factor of intellectual stimulation includes those actions in which leaders promote the development of future leaders, challenging subordinates to think for themselves, and to evaluate old problems in innovative ways. Telling a subordinate to think further about a problem (e.g., “What would likely happen if we did this?”) or asking a subordinate to brainstorm with the leader (e.g., “What would you advise if you were me?”) are two ways that leaders can exercise intellectual stimulation.

Fourth, individualized consideration focuses on the relationship between the leader and each follower. Leaders who display strength in this transformational dimension treat each subordinate individually, coaching and advising them, and recognizing subordinates’ achievements. Other demands often prevent leaders from spending as much time as they would like with their subordinates, but leaders who are strong on individualized consideration find the opportunity to work one-on-one with their subordinates.

Transactional Leadership - The Heroic Model

Transactional leadership is essentially an exchange relationship between superior and subordinate. According to Bass, transactional leadership comprises two types of behaviour, contingent reward and management by exception. Contingent reward refers to those actions in which the leader assists the follower in return for follower effort. The leader specifies who is responsible for achieving performance targets and defines the rewards linked to performance. Leaders who hold out the carrots of good performance assessments and plum postings to motivate followers are engaging in contingent reward. Management by exception refers to the leader’s behaviour towards errors and mistakes.