Organizations across the globe are continually finding innovative, sustainable, and effective ways of remaining profitable especially in this era of increased competition. One of the main ways in which organizations are bracing the increased competition is through the enlisting of the right people with the correct mix of leadership qualities. In essence, effective leaders make a significant difference in their respective organizations, as they are able to translate the set organizational goals into tangible and intangible financial benefits. As it is, there are several types of leadership styles in the offing with the main examples being charismatic, transformative and transactional leadership styles. While each of the leadership styles promises great returns, it is important to note that they are associated with potential pitfalls. Following such a realization, it is crucial for organizations to compare these styles to be in a position to stick to the leadership styles with more organizational benefits.
Characteristics of charismatic, transformational and transactional leadership styles
Charismatic leaders are those leaders who are able to influence their followers due to their special personalities, which helps them to accomplish extraordinary goals. Charismatic leader possesses several characteristics as follows. For one charismatic leader tend to command a stout desire to inspire others since they have a strong sense of their own moral principles (Northouse, 2016). Moreover, charismatic leaders are considered strong role models, which mean they are able to instill their personal beliefs and values to their followers. On the other hand, transformational leadership is concerned with transforming people to adapt to some set ethics, values, standards, and goals. Moreover, transformational leadership is viewed as a form of influence which then helps the followers to attain more than what is normally expected of them. In essence, transformational leaders are the kind of leaders who put more effort into transforming their followers so that they can reach their full potential (Sanner-Stiehr & Kueny, 2017). Transactional leadership is concerned with the exchanges that occur between leaders and their followers. In simpler terms, the leaders must offer something to their followers and vice versa if the leader-follower relationship is to be sustainable (Hussain et al, 2017). Transactional leaders do not individualize the needs of their followers which can spell doom for the organizational objectives. Additionally, transactional leaders exchange things of value with their followers to advance their followers’ or their own agenda (Northouse, 2016). In turn, followers do what the leader wants as it considered to be in their best interest to do so.
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Similarities and differences of charismatic, transformational and transactional leadership styles
The three leadership styles have several similarities and differences. When it comes to similarities, the three leadership styles outline the relationships that exist between leaders and their followers. The leaders help steer the followers to achieve either personal or organizational goals. Moreover, the three leadership styles aim at instilling in the followers a sense of duty towards the leader since the leaders are considered as individuals with authority. Furthermore the three types of leaders take it upon themselves to set behavioral and organizational precedence for their followers to follow.
The three leadership styles though so similar exhibit several differences. For one when it comes to charismatic leadership style one is able to pick out that it is the followers who decide who their leader is. In the other two leadership styles, it is the leader who seeks the loyalty of the followers after appointment or descent to a leadership position. Transactional leadership is different from charismatic and transformational leadership as it makes use of exchanges between the leaders and the followers. In this case, it is a give and take relationship which is determined by the adherence to one’s bargain. Charismatic and transformational leadership unlike transactional leadership style has the followers’ outcomes at heart. These two leadership styles are aimed at improved the followers’ beliefs, values and standards. On the other hand, transactional leadership is more of leader-focused instead of aiming to promote followers self-development and efficacy.
Potential pitfalls for charismatic, transformational, and transactional leadership styles
The aforementioned leadership styles are crucial in the realization of organizational goals. However, the same leadership styles may spell doom for the organizations as they have major pitfalls. While charismatic leaders are able to influence the action of others since they are strong role models, they may, in turn, influence them to take the wrong course of action (Northouse, 206). The reason for this is the fact that charismatic leaders know very well that their followers regard them with esteem and their directives are followed promptly.
Transformational leaders though keen on transforming their followers’ values, attitudes and goals so that they reach their full potential, may pose a major threat. For one transformational leader may place very high expectations for their followers which will only help in putting undue pressure on the followers and in turn frustrate the leaders (Sanner-Stiehr & Kueny, 2017). Additionally, leaders may treat their followers as their personal projects, which then means that the followers lack a voice of their own.
The transactional leadership style just the other leadership styles has its own pitfalls. The fact that transactional leadership relies on exchanges between them and their followers is a main concern to the leadership process. Here, followers tend to accomplish tasks since they expect to receive some benefits. If then these followers fail to get the benefits then they are likely to act contrary to their agreements (Hussain et al, 2017). Moreover, this kind of leadership denies followers an inner drive to achieve as they are more focused on satisfying their leader, which is detrimental to the set organizational goals.
In conclusion, charismatic, transformational, and transactional leadership styles are some of the main leadership styles that organizations adapt to remain viable in the face of rising competition. Each of the leadership styles has several benefits as it is about how leaders relate with their followers to achieve personal and organizational goals. For one the leaders are able to influence their followers to follow a particular set of behaviors, standards, and attitudes which are beneficial. Moreover, the followers have a point of reference in their endeavor to meet personal and organizational goals. However, it is important to note that these leadership styles have several pitfalls which may affect the achievement of organizational goals. In essence, the leaders being aware of the fact that the follows regard them with high esteem may come in the way of their followers’ inner drive to achieve. Nonetheless, it is important for organizations to infuse the best of all the leadership qualities to achieve their goals.
References
Hussain, S. T., et al. (2017). Transactional leadership and organizational creativity: Examining the mediating role of knowledge sharing behavior. Cogent Business & Management 2017 (4), 1-11.
Northouse, P. G. (2016). Leadership Theory and Practice . Los Angeles: Sage Publications.
Sanner-Stiehr, E. & Kueny, C.R. (2017). From the top-down: Transformational leadership considerations for health care organizations. Journal of Hospital Administration , 6(4), 1-9.
