Transactional Leadership is a behavioural leadership theory which focuses on the link between supervision, organisation and group performance. Leadership styles. Branson is the Founder of Virgin Atlantic Group. The business magnate, and co-founder of tech giant Microsoft focuses on strict control of his organisation’s production process (so that its products are well accepted by consumers). Top Answer. The way Branson and the others see it, “Transformational leadership focuses instead on building a values-led work culture. Simply put, transactional leadership theory believes that leaders should conform to the existing structure of an organization. Participative leadership styles afford followers the opportunity to participate, exchange ideas freely, and create discussion. They are quick to notice when employees achieve a predetermined goal and will reward them appropriately. Mandela was prepared to share his leadership with others, focusing his activism, and later political role, on community building and empowering others to lead social change. Leadership styles are as varied as the people leading their organisation (or cause) to victory. Financial Times. A transactional leader is happy to work within the existing systems and constraints and will operate from within the boundaries to achieve the goals of the organization. They tend to think inside the box for solving problems. I agree so much that even if an employee is not 100% satisfied with the job he has, if the work environment is safe and fun, and if that employee is smiling and happy, then that employee will still do his best at his job. The leader wants everything to remain strictly as they are, and do not believe in improving working conditions to make things better. This style of leadership focuses on power-sharing models of authority by prioritising the needs of followers and encouraging collective decision-making. The Branson philosophy of management says it all. Stewart is also convinced of doing things “the right way” and this translates into her business management style which focuses on highly regimented work structures (determined by Stewart almost exclusively). Given Branson’s adaptability to easily change in organizational cultures and make major changes in times of distress, while maintaining social values, contribute to the style that works best for him, which is the transformational leadership style. In this approach, the leader is not looking forward to transforming or improving the future but just wants things to remain the same. CEO of Berkshire Hathaway and one of the most successful investors of all time, Buffett employs a “hands-off” leadership style when it comes to his employees. “If you can motivate your people, use their creative potential, you can get through the bad times and enjoy the good times together … if your employees are happy and smiling and enjoying their work, they will perform well.”. Servant leadership is an innately altruistic style of leadership. Transformational leaders are everyday people who show up every day in every way to be and to become their very best in the world. The leader possesses total authority, with a clear separation between leaders and followers, work is highly structured and regimented, and strategic direction is controlled by the leader. Copyright © 2020 Liquid Learning Group. Establish and maintain … Mandela hardly needs any introduction. The power of transactional leaders comes from their formal authority and responsibility in the organization. These leaders afford a great deal of autonomy in decision making and work processes. Safe to assume, most of us are familiar with this leadership style. Because transactional leaders do not seek to transform things, they tend to be highly resistant to change. Transactional or Transformational – Which Leadership Style is Best? While the leader makes the final call, each employee still has an equal say in strategic direction. Provide productive feedback on performance. Interestingly, transformational leadership types focus on developing followers into leaders by unlocking personal potential. Transactional leaders expect followers to be compliant and ensure this by way of rewards and punishments. While they may be able to handle routine affairs, they are often stumped when faced with the problem that requires a creative solution. Transactional leaders expect followers to be compliant and ensure this by way of rewards and punishments. Arguably the least intrusive of leadership types. One of the most distinct characteristics of a transactional style of leadership is practicality. The business magnate, author, and magazine publisher owes her success to her autocratic leadership style. Definition of transformational Leadership. There’s no set formula for leadership. He treats his employees on all levels as equals, like family with respect, and welcomes feedback and/or suggestions from his employees. She has formed a workplace environment to create satisfied employees including sustainable creativity, introducing mindful practice at work for the wellbeing of all employees. We have pioneered a revolutionary approach to identify exceptional leaders and match them to the positions you need. Retrieved from http://lexicon.ft.com/Term?term=transformational-leadership, Simon, M. (2015). new ideas. Branson is the Founder of Virgin Atlantic Group. Branson’s charismatic and entrepreneurial spirit has inspired generations of entrepreneurs to take the necessary risks to realise their dreams. Charismatic leadership styles rely on motivating followers through sheer force of personality. This hegemonic organisational culture is the definition of old school in its approach to leadership. In an article, “Transactional or Transformational – Which Leadership Style is Best?” the author brings attention to true well known transformational leaders, and Richard Branson was among the few. Focus on increasing the efficiency of the established routines and procedures and show concern for following existing rules rather than change. The leader tends to only react to things that happen and does not take proactive steps to prevent problems. Switch and Shift. The Virgin Group … Copyright 2020 © The Pennsylvania State University. transactions) to motivate followers. Stewart built her empire with meticulous attention to every detail. Answer. She is renowned for being a perfectionist and demands the same of those who work for her. So, let’s put a face to the name of these top seven leadership styles. Retrieved from http://switchandshift.com/transactional-or-transformational-which-leadership-style-is-best, Joseph, C. (2015). All rights reserved. This leadership style is quite passive because the focus is on maintaining the status quo. According to Tracey and Hinkin (1998), transformational leadership is a process that motivates people by appealing to higher ideals and moral values, defining and articulating a vision of the future, and forming a base of credibility. It focuses on results, on measuring success based on existing rewards and penalties, and maintaining formal authority positions. Richard Branson Leadership Style Commandments. How do you identify a transactional leader? Independent thought and risky actions are frowned upon, and this is because the leader is not innovative and believes that things are good as they are. What makes Richard Branson a successful leader is that he is fun, warm, friendly, takes risks, competitive, hard negotiator and lastly, a workaholic. So, she installed sleep pods in the workplace to make sure employees can rest when they are tired so they can do their best work while awake. Their approach to solving problems is one of pragmatism, and they take all realistic constraints and opportunities into account. Branson manages to maintain a healthy leader-member relationship with all his people. These leaders do not encourage employees to act creatively or think for themselves. 2011-02-07 16:15:20 2011-02-07 16:15:20. These leaders continually change stay flexible and adaptable, and continually improve those around them. Employees are rewarded for behaving in an expected manner, and punished for any deviation. They tend to hire experts in their field who they trust to do their work in the best way that way they see fit. Expect to be micromanaged and directed if you’re working under a transactional leader. “If you think your teacher is tough, wait until you get a boss. Leadership Style #1 Transformational Leader. Transactional Leadership is a theory or style first discussed by sociologist Max Weber in 1947 and later expanded upon by Bernard M. Bass, who also played a leading role in the development of Transformational Leadership .