Discussion of the Transactional Theory

Introduction The discussion paper reviews leadership theory based on the readings from the paper  “Transformational vs. Transactional Leadership Theories: Evidence in Literature.”  For purposes of this discussion I shall dwell on the transactional theory. Having discussed the selected theory, I shall briefly draw some comparisons of the two leadership theories – Transformational and Transactional theories. I shall provide insights into whether it is possible for a leader to possess both leadership styles and discuss the possibility of the two theories being complimentary to each other. I shall cite by way of example situation when encountered a leader using both styles and provide an assessment of its effectiveness or not. Before we begin to examine the leadership theories it is worth reminiscing what we read in unit 1 and use that to contextualize the discussion. In leadership discourse there is an “underpinning [philosophy]… politics of leadership”, (Spahr, 2016) and there is also a pertaining environment or situation for the activity.  This coupled with leadership levels (national, micro-level), reasons why one wants to be a leader and his knowledge or thinking about governance or leadership and being mindful of all these factors may help us be careful not to “opine {ideas} in absolutes”, (Spahr, 2016). Therefore, the concept of leadership is entrenched in some philosophical theory. Below we look at the  Transactional Theory.   Discussion of the Transactional Theory Transactional theory is a management theory which “hypothesize that optimal performance can be achieved through the use of awards and punishments,” (Russell, 2011, p.6).  The leadership style focuses on achieving results through ensuring conformity to established work policies, rules (standard operating procedures) as well as the existing structure of an organization and measures success according to that organization’s system of rewards and penalties, (Spahr, 2016). The theory focus on relationship of leaders and followers based on mutual benefits drawn from a binding understanding or agreement  where a leader recognizes outcomes, commitment and loyalty of followers with rewards or other forms of recognition. Russell, 2016 expounds that the theories are “often used in management where employees are rewarded (bonuses, time off, etc.) when they optimally perform and are punished (reprimanded, shift work, etc.) when their performance is severely below expectations”. The leadership style based on this theory is “controlling (micromanages),” with focus on “ short term planning, immediate task accomplishment and being organized”, Russell, 2016, p.6).   Comparative analysis of Transactional and Transformational Leadership  Theories. The main difference between Transactional Leadership Theory and Transformational Leadership Theory  are on the management style that are employed to get things done. As theories Russell (2016) classifies Transactional Theory as Management Theory while Transformational Theory is a Relationship Theory. The transaction Leadership controls what needs to be done, how it is done, by who, by when and sees to it that results are achieved. Transformational leadership on the other hand inspires employees through engagement to embrace the vision and understand goals to be attained and entrusts employees to be creative and innovate ways of getting the quality products out and in time. Like transactional leadership, Transformational leaders may reward employees but not for doing as told but by being creative and innovative and producing exceptional products and this approach promotes creativity and innovation. Can a leader be both Transactional and Transformational? Yes, a leader can be both transactional and transformational. A good leader adapts, and it all depends on the situation at hand. If there is need to get quick results a leader can use employee engagement and where it is deemed to not offer the right solution in time and he has a better solution, a leaders can dictate what is to be done, by when and how it is to be done and control the process to get desired results.   Discussion of the Complementarity of the two theories The two theories compliment each other. Transactional leadership values structure and order. Transformational leadership build on the existing structure and order to build relationships among employees and inspire them to deliver results. While Transactional leaders place trust on their leadership to get employees to deliver the desired results, transformational leader trusts his/her employees to find creative ways to deliver those results. Decision making and  engagement in transformational leadership create a conducive participatory work environment that devolves the controlling environment in transactional leadership style. Depending on situation one or the other leadership style may be appropriate.   An encounter with Leader who use both Leadership styles: Sam I report to Sam who is a charismatic leader and fits the bill of one such Transactional leader. He is the Principal Investigator. Working in a Medical Research Field and overseeing the project I lead; he ensures that the team delivers quality work results and that we deliver on time. We submit Yearly, quarterly and monthly plans and have associated meetings that discuss the plans to ensure they deliver on project outcomes. With two weekly sprints we assess all employees results on defined work assignments. These assessments add up to employee performance and inform rewards  (or none) that accrue to the employee at end of the year. But my boss practices both leadership theories in that he engages us and inspires us to develop solutions to the problems. He also engages us in decision making and so promotes creativity among the team while controlling the project deliverable quality and timing.    References Clark, D (2015, Sept 10). Transformational Leadership. Retrieved from: http://www.nwlink.com/~donclark/leader/transformational_leadership.html Clark, D (2015, Nov 11). Transformational Leadership Survey. Retrieved from: http://www.nwlink.com/~donclark/leader/transformational_survey.html Odumeru, J. & Ifeanyi, G. (2013). Transformational vs. transactional leadership theories: Evidence in literature. International Review of Management and Business Research (2)2. Retrieved December 3, 2015 from: http://www.irmbrjournal.com/papers/1371451049.pdf Spahr, P. (2016, Oct 19). What is Transactional Leadership? How Structure Leads to Results.  St. Thomas University Online. Retrieved from: http://online.stu.edu/transactional-leadership/ Russell, E. (2011, Sept 8). Leadership theories and style: A transitional approach. General Douglas MacArthur Military Leadership Writing Competition. Retrieved from https://www.leadership-central.com/philosophical-foundations-of-leadership.html#axzz4clkUEVG7 Sferra, B. A. & Paddock, S.C. (1980). Leadership Theories.  Eric Document: 199932. Retrieved from https://my.uopeople.edu/pluginfile.php/550190/mod_book/chapter/202389/U1%20%20Leadership%20Styles%20Essay.pdf