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Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...
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Transformational vs. Transactional Leadership Theories


Transactional leaders depend on a stick and carrot strategy. They usually do not get the best from their subordinates and usually, the results will be within the expectations. In transactional leadership, the leaders exchange the subordinates' services with wages, salaries, and bonuses. Their logo is if you gave me I will give you and if you do not give good results you will be punished (Odumeru & Ifeanyi, 2013).

Unfortunately, in many cases, most persons tend to be transactional without any creativity because the main purpose to them is to work within the policies and procedures of an organization and guarantee that their direct reports are done according to the requirements.

 Transactional leaders lack how to inspire the subordinates and to enable subordinates to follow them through passion and the only thing they know is subordinates have to and must to (Michael, 2019).

Briefly draw some comparisons between them.

Many comparisons can be identified for both leadership style (Michael, 2019)

Transactional Leadership

•    Leadership is responsive

•    Works according to the organizational structure only.

•    Keeps the present situation without making any changes.

•    Goals are accomplished by a reward/punishment system

Transformational Leadership

•    Leadership is proactive

•    Seeks to develop an organizational structure with new thoughts and actions

•    Innovative ideas are an essential part of solving problems process.

•    Objectives are achieved through motivation and inspiration.

 

Often these two theories are looked at it contrast to each other but is it possible for a leader be both? Can they be complementary to each other?  Have you ever seen a leader use both styles?  Was it effective? Why or why not?

I think these two styles can be work together especially in the hard situations in a project. For example, I had a vision and I was able to let my subordinates to believe it then I was always motivating and inspiring them in a project but I felt that the subordinates need motivation from another type. In this case, it is possible to motivate them by informing them that there are special rewards are waiting for them in case of their success or some kind of punishment if they not.

In this case, I applied the two styles together in my leadership and they became complementary to each other.

I have not seen a leader uses both styles but I think it is very important for organizations to have both visionary or transformational leaders and transactional leaders.

Finally, I believe that no one style of leadership fits all situations, so it's useful to understand different leadership frameworks and styles. We can then adapt our approach to fit our situation.

 


References:

 

Michael, M. (2019). Transactional vs Transformational Leadership. Retrieved from: http://www.leadershipgeeks.com/transactional-vs-transformational-leadership/

 

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/

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