Transactional and Transformational Leadership

1913 Words8 Pages
Yuan Ye (Carol)
IBT07148

Transactional and Transformational Leadership

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To: Nour Akalay Management

June , 2008

Transactional and Transformational Leadership

Leadership has been an important topic in the social sciences for many years. Recently, renewed interest in the concept of leadership has been aroused. “The resurgence of interest in studying the topic of leadership appears to be accompanied by an acceptance of the distinction between transactional and transformational leadership.” (Den Hartog, Van Muijen and Koopman, 1997, P.41) Transactional and transformational leadership were regarded as important leadership theory started from Political sociologists James
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These wrong decisions made a big loss of Ford Motor Company. From these two examples we can see that Henry’s management relationship depends on the power and hierarchy. Maybe, to some extent, Henry Ford is the dictator of Ford Motor Company.

◆ Motivation and Reward The typical characteristic of transactional leadership is the process of exchanging. Employees use their labor to change for rewards, and leaders use motivation to change for performance and obedience. One way or another, the leader and follower agree, explicitly or implicitly, that desired follower behaviors will be rewarded, while undesirable behaviors will draw out punishment. “Henry Ford was a pioneer of "welfare capitalism" designed to improve the lot of his workers and especially to reduce the heavy turnover that had many departments hiring 300 men per year to fill 100 slots.” (Retrieved June 10, 2008, from http://en.wikipedia.org/wiki/Henry_Ford) Henry Ford started the 40-hours week and paid their employees $5-per-day. Ford provided so good treatment to change for efficient performance of employees.

◆ Other Leadership
Henry Ford management also embodied other leadership. Let’s discuss some of them. Transformational leadership Transformation leaders think more about the relationship with followers. They always want to give a good influence on employees and to provide good salary to employees. So Henry Ford started the 40-hours week and paid their employees $5-per-day
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