Critically analyse two different appropriate leadership styles

Transactional leadership:

Transactional leadership helps in promoting the compliance with the existing organizational goals and objectives through close supervision and using the system of reward and punishment. This way the transactional leadership are limited to attaining particular tasks and achieving particular outcomes. The transformational leaders focuses on the role of group performance within the organization. They are concerned about maintaining status quo in the organization specifically the objectives and goals are kept same. On the other hand they try to make day to day progress towards their goals and too within the existing boundaries of the goals and structure of the organization that actually exists.

Transformational leadership:

The transformational leadership works towards enhancing the motivation and employee participation in the business process through shared vision. Unlike transactional leadership they challenge the existing goals and structure of the organization and try to achieve complete change within the business process.  The main idea is to increae employee motivation and engagement so that the reframing of the organization values can be done. This way this kind of leadership concentrates on the strength and weaknesses of the employees and try to improve them for attainment of new set of goals and objectives.

Critical analysis of two different leadership styles:

Transactional and transformation leadership styles can be analyzed as follows.

1. Transactional leadership:

The transactional leadership actually reacts to the problem that rises in the regular business process. Also the transactional leadership work within the existing work culture with the motive to attain different organizational goals and objectives that are preset by the high level management. In addition the transactional leaders use the tools like reward and punishment while dealing with the performances of various employees. That is the outperformers are rewarded while the under performers are punished accordingly. This way the the transactional leaders try to achieve the self interest of the employees who are interested in getting rewards. And along with that the transactional leaders follow the common notions that are shared by the management.

Critics are however of the view that the actions taken by the transactional leaders could lead to high employee turnover. That is the employees are made to work on projects without getting their conviction. This way the employees could get skeptic about the work process and try to shift job to other company to stay financially safe.

Critics also argue that the transaction leaders react to the problems which otherwise could be identified well in advance. Therefore instead of wasting time in waiting for the problem to arise, it is better to find out solution well in advance.

Critics are of the view that the reward and punishment are the tools used by the transactional leaders. However these tools could lead to mismanagement and inefficiency in the business process.  That is the employees would stop working on the shared vision and will try to surpass one another for getting the rewards. This way the common attempts towards achieving organizational goals and objectives will not be attained. Thus the group interest face a huge set back in transformational leadership.

Critics are of the view that the transactional leadership considers the goals as the end of the management needs and therefore does not think beyond that point. This is an unrealistic approach. That is the management have to continue with getting new goals and objectives. Therefore considering attainment of short term goals will not be a wise action. The managers therefore need to consider the long term goals as the prime objective where the organization employees should concentrate on instead of short term transactional goals.

2. Transformational leadership:

The transformation leaders are proactive and therefore tries to address issues before they become problems. They emphasis on the generation of new ideas and thereby work towards transformation of the whole organizational culture. Also the transformational leaders try to attain the positive results from employees by applying employee engagement in the decision making process. This way the transformational leadership develops group interest and from it the notion of the organization success. In addition the transformational leaders complies with the shared notions with the company employees.

Critics are of the view that the transformational leadership considers the long term objectives, but the short term objectives are avoided. Therefore in reality the short term objectives are equally important as short term objectives. Thus efforts should be made towards accomplishing short terms goals as well.

Critics are also of the view that the transformational leadership emphasis on the new ideas but this does not means that the old ideas are completely wrong. If they were wrong then how the business sustained from so long. Thus it is preferred to take into consideration both the old and new ideas. The mixture of the two ideas can further help in making the best decision making for the organization.

Critics points out that the transformational leadership supports the idea of getting positive results by making employees invested in the project. However all employees are not efficient enough. Also every employee does not care for the future of the company. Therefore it would not be wise to leave the future of the organization in the hands of employees who are lesser trustworthy. Therefore the role of high level management in the decision making process is vital and their control over the employees is very important for the existence of the company.

Critics are of the view that the reward and punishment are vital for the sustenance of the business. The organization should continue to practice this policy to keep the employees aware that their performance are evaluated and judged. Thus the employees would work hard and try to achieve rewards from them. Without the rewards employees won’t have any motivation to work hard and without the punishment they will not be scared of their underperformance.

Critics are of the view that the transformational leadership could lead to high employee turnover. Therefore efforts should be made to achieve employee acceptance before the application of the transformation policies.

• The effectiveness of both leadership styles identified in undertaking change in an emergent environment to sustain competitiveness.

The effectiveness of both leadership style that is transformational leadership and transactional leadership would help in

• Discuss how each leadership style can enhance organizational performance.

Part B (1,500 words)

Critically evaluate the line managers role in one of the following practices and how they can increase organisational effectiveness and remain competitive in the current volatile business environment. Student should use appropriate models or theories to support your argument.

Choose from one of the topic listed below:

1. Managing Talent in a Multigenerational Workforce
2. Employee Learning and Development
3. Managing Employee Performance
4. Motivating and Engaging Employees

The word count must be stated on the front page of your assignment. Summarising and compressing the information in your assignment into the word limit is one of the skills that students are expected to acquire, and demonstrate as part of the assignment process.