Different leadership theories, including the positives and negatives of each theory.
Compare and contrast two different leadership theories, including the positives and negatives of each theory. Provide an example of each referring to a current, well-publicized leader. Evaluate how power is used within these theories and by these leaders. Explain the role of ethics within these leadership theories and practiced by these leaders. Explain how these leaders can improve trust and communication. Locate and summarize two empirical research studies within the last five years with these leadership theories by discussing the following: sample, methodology, findings, and the noted gaps in literature.
Sample Answer
The two leadership theories I will compare and contrast are Transformational Leadership and Transactional Leadership. These theories represent fundamentally different approaches to motivating followers, managing performance, and achieving organizational goals.1
🤝 Comparing and Contrasting Leadership Theories
Feature
Transformational Leadership
Transactional Leadership
Focus
Change, vision, and growth. Inspiring followers to transcend self-interest for the good of the organization.
Exchange, goals, and efficiency. Managing day-to-day operations and task completion.
Motivation
Intrinsic. Appeals to followers' values, aspirations, and self-actualization.
Extrinsic. Relies on contingent reward (rewards for performance) and punishment (management by exception).
Relationship
Personalized. Leader acts as a coach, mentor, and role model (Idealized Influence).
Impersonal. Relationship is based purely on the exchange of effort for reward.
Goal
Long-term vision, innovation, and organizational change.
Short-term goals, compliance, and maintaining the status quo.
Transformational Leadership
Positives (+)
Negatives (-)
High Performance: Inspires followers to achieve results that exceed expectations (extra effort).
Time and Communication Heavy: Requires significant time to build high-trust relationships and articulate the vision.
Focus on the Big Picture: Can neglect short-term operational details, budgeting, or routine task management.
Example: Barack Obama, particularly during his 2008 campaign and first term.2 He used inspirational motivation ("Yes We Can") and idealized influence to articulate a shared vision of hope and change, inspiring young people and diverse groups to transcend political differences and achieve a common goal, making followers feel part of something larger than themselves.
Transactional Leadership
Positives (+)
Negatives (-)
Clarity and Structure: Provides very clear roles, task requirements, and performance metrics.
Stifles Creativity: Focuses on meeting established metrics, discouraging risk-taking and innovation.
Efficiency in Stable Contexts: Highly effective for routine tasks, crisis management, and ensuring compliance with standards.
Low Intrinsic Motivation: Relies heavily on extrinsic rewards, potentially leading to demotivation once the rewards are achieved or if the rewards are not valued.
Accountability: Swift outcomes and easy accountability through defined rewards and corrective action (management by exception).
Focus on Short-Term Goals: Employees focus solely on immediate tasks for a reward, neglecting long-term strategic goals.
Example: Jeff Bezos (during his CEO tenure at Amazon). While he is also highly visionary (transformational), the execution culture at Amazon is famously transactional. He instilled a culture where high performance, efficiency, and meeting customer-obsessed goals were expected, with rewards (stock options, promotions) given for compliance and punishment (corrective action, poor reviews) for failure to meet those clearly defined targets and metrics.
⚡ Power and Ethics in Leadership
Use of Power
Leadership Theory
Power Used
Leader Application
Transformational
Referent Power (Soft Power), Expert Power
Obama: Used his Referent Power (charisma, likability, and being a role model) to gain trust and inspire loyalty. He used Expert Power (rhetoric, intellect) to frame complex policy issues. Power is shared through individualized consideration.
Transactional
Reward Power, Coercive Power (Hard Power), Legitimate Power
Bezos: Primarily relied on Reward Power (bonuses, promotions, high compensation) and Coercive Power (the threat of termination or demotion for missing performance bars). Power is concentrated and hierarchical, ensuring compliance.