Max Weber And The Transactional Leadership

Proper management of institutions is the key to the success of such a firm. The kind of leadership being dispensed directly affects the motivation of employees and their productivity. The two most prominent kinds of leadership are transformational and transactional leadership. This article seeks to discuss the two kinds of leadership and eventually propose the most efficient kind of management.

These rewards come in the form of salary increment, bonus and recognition (Gill 2011). Employees who fail to perform well are punished (Bass 2008). Howell and Avolio (1993) study confirms that the contingent rewards leadership has a negative effect on follower’s performance (Gill 2011). Similarly, transactional leadership is based on a contingent reward and punishment system, it does not offer much in term of motivating and inspiring people (Bach and Ellis 2011).

An authoritative leader addresses the end but generally gives workers freedom to innovate, experiment and take risks. The authoritative style works best for organizations that are off track, it helps in creating a new course and fresh long-term vision. The affiliative style strives to keep employees happy to create harmony among. The style has a positive effect on communication. People who like one another a lot talk lot. They share ideas, inspirations leading to flexibility, innovation and risk taking. This style should only be employed when trying to build team harmony. The democratic style allows leaders to build consensus through participation. By spending time getting people’s ideas, a leader is able to build trust, respect and commitment. This style works best when a leader is uncertain about best direction however, it does not make sense if employees are not competent. Pacesetting is a leadership style that expects excellence and self-direction. The leader is obsessive about doing things better and faster, and expects the same of everyone around

5. Transactional leadership includes a deal between the leader and his/her followers. The workers are basically doing tasks for the organization, in order to receive some kind of benefits, money, etc.

How their work blend into a larger vision for the organization. This type of leadership style

Transactional leadership is built on reciprocity, the ways in which leaders and followers influence one another, and the idea that the relationship between leader and their followers develops from the exchange of some reward, such as performance rating’s, pay, recognition, or praise (Marturano, 2004). This style of leadership does not promote a close relationship amongst the boss

Transactional leadership styles are more concerned with maintaining the normal flow of operations. Transactional leadership is described as making contact with others for the

Transactional leadership on the other hand was first described in 1947 by Max Weber; he first coined "rational-legal leadership — the style that would come to be known as transactional leadership — as the exercise of control on the basis of knowledge” (Spahr, 2014). According to Spahr (2014), characteristics of transactional leaders include: focus on short-term goals, favor structured policies and procedures, thrive on rule following and doing things correctly, revel in efficiency, left-brained, inflexible, and opposed to change.

“Transactional leadership is a style of leadership focused on contingent rewards of followers” (McGuire & Kennerly, 2006, p.180). Goals are set, directions are given, and rewards are used to reinforce employee behaviors associated with meeting or exceeding established goals. Followers are manipulated and controlled with rewards of praise and recognition, merit raises, and promotions, which can be given or withheld according to the employee’s performance. The outcome of such behavior is enhanced role clarity, job satisfaction and improved performance (McGuire & Kennerly, 2006).

Transactional Leadership was first described by Max Weber in 1947 and re-described by Bernard Bass in 1981. Recognized a traditional leadership, it focuses on the role of supervision, organization and group performance. Transactional leaders use an exchange model; they promote compliance of followers through both rewards and punishments. Not looking to change the future, transactional leaders are trying to keep everything the same (Odumeru & Ogbonna, 2013).

 The transactional style of leadership is pretty straight forward but it uses rewards and punishments to motivate the team. This is a style of leadership that is similar but not as extreme as the autocratic style. The transactional styles are direct and dominant and spend a great amount of time saying what is expected from the team as a whole. The leaders monitor the work and each and everyone’s individual performance, there is also a clear chain of command.  Transactional leaders are very commonly found within businesses where people are given rewards such as bonuses, training or time off if they show a good demonstration.

Furthermore, there are different theories which give insights about why some leaders lead the way they do. One of these theories is the behavioral theory, it emphasized on what leaders do and their leadership styles. The behavioral theory explains three different types of leadership styles namely: autocratic, democratic, and laissez-faire. An autocratic leader makes plans, gives direction on how to execute them, and makes decisions for the group. These type of leaders are highly power control. They give little or no freedom to the members. Whatever they say is final. On the other hand, democratic leaders allow members to participate in the decision making. They seek opinions of the members. On the other hand, laissez-faire leaders allow members to do whatever they like. This type of leaders does very little planning or decision making thus fail to encourage others to do it (Weiss and Tappen, 2015 p.

Two different leadership styles, which were first identified in 2004 by a noted scholar named Burns, are transactional and transformational leadership (Marquis & Hutson, 2009). Transactional leadership is a more traditional style of leadership and it is where the leader sets goals, gives directions, and uses a reward system to motivate employee’s behaviors related to

This theory is characterized by its emphasis on exchange. There is a kind of contractual between leaders and subordinates deal, therefore emphasis on performance so much. Hollander(n.d.) agreed, it emphasizes that task goals, working standards and output, tend to focus on task completion and employees to obey, relying more on reward and punishment to affect employee of the organization. Although to the management of employee, team and organizational change to achieve high benefit, transactional may try efficiency and profit maximization and ignore something long term, and may make the subordinate under the strong pressure and excessive rewards and punishments falling immoral and irrational myth.

This leadership style is more concerned with maintaining the normal flow and keeping the ship running smoothly (Ingram, 2015). Without the broader context of a shared vision and the higher-level perspective of what an organization is trying to accomplish, people will maintain a narrow focus. Employees will tend to concentrate on the individual transactions at hand such as processing forms and interacting with callers, rather than how those transactions fit into and contribute to higher goals (Tucci, 2008). This style is effective in addressing small operational issues quickly but does not address strategic growth (Ingram,