Examples of Leadership Types

Leaders are an important facet of any organization or community. An inspiring leader can cause others to work hard at achieving a common goal. At the same time, a leader with bad leadership qualities can cause others to give up on a goal. There are many different types of leadership, each with its own strengths and weaknesses. Three of the main types of leadership are transformation, transactional, and charismatic. Exploring these leadership theories can help one determine which type of leadership will work best in specific circumstances.

Transformational Leadership

The first type of leadership is transformational leadership. The leader is an inspirational figure that encourages employees to use their own creativity when tackling issues and creating solutions. Through this method, the company experiences a thriving growth. Responsibility and independence are mainstays of company culture when transformational leadership is involved. Micromanagement is eliminated, reducing employee frustration and increasing trust. The transformation leadership theory has been popular for decades. James V. Downton created this model in 1973, and then James Burns and Bernard M. Bass both expounded upon it in later years (White, 2018). One example of transformational leadership would be presenting employees with an end goal while allowing the employees to decide how to best reach this goal. With strong communication between the leader and the other employees, everyone can work together as a team using their own strengths to further the development of the company.

Transactional Leadership

While transformational leadership focuses on intrinsic rewards, transactional leadership focuses on extrinsic rewards. There is also a system of punishment for poor behavior. There are some types of business that rely on routine and guaranteed results, and for these companies, transactional leadership may be the best way to approach a project. In 1947, Max Weber created the transactional leadership theory, with Bernard M. Bass also looking at this theory in the 1980s. In transactional leadership, the transaction takes place between the leader and the employee. Good results produce rewards while bad results produce negative transactions (Money-zine, 2019). An example of transactional leadership is giving an employee an assignment with clear instructions to follow that must be completed by a certain deadline. An employee that exceeds a quota, finishes before the deadline or demonstrates other superior work may be rewarded with raises, gift cards, or other incentives. An employee that does not finish the job does it poorly, or pushes work off on others may lose out on a promotion or even be fired.

Charismatic Leadership

The final leadership theory is that of charismatic leadership. Charismatic leaders employ a charming personality and a devotion to their cause that creates inspiration in others. The passion a charismatic leader shows are infectious. Max Weber identified this type of leadership in 1958. It has been used successfully by many world-changing influencers, such as Dr. Martin Luther King, Jr or Winston Churchill. Charismatic leadership, while inspiring, does carry some dangers. Some leaders develop a sense of arrogance or may feel as if the law does not apply to them. An effective charismatic leader is a risk-taker who is sensitive to others (STU, 2018). In business, a charismatic leader will use their passion for a company or a particular project to excite those who are working on the project for fast, excellent results.

Conclusion

Each of these leadership styles is valid and have their place in specific situations. While the freedom of transformational leadership may sound more alluring than the business-like formulas of transactional leadership, there are times when rigidity and routine are important. There are also some employees who are extrinsically motivated rather than intrinsically motivated. Still, others are motivated by those with a vision, such as a charismatic leader. Many of the styles can have their elements combined, even, to create personalized styles of leadership for an organization.

References

Money-zine. (2019). Transactional leadership. Money-zine. Retrieved from https://www.money- zine.com/career-development/leadership-skill/transactional-leadership/.

STU. (2018). What is charismatic leadership? Leading through personal conviction. STU Online. Retrieved from https://online.stu.edu/articles/education/what-is-charismatic-leadership.aspx.

White, S. (2018). What is transformational leadership? A model for motivating innovation. CIO. Retrieved from https://www.cio.com/article/3257184/what-is-transformational-leadership-a-model-for-motivating-innovation.html.