Leadership style refers to a leader’s approach to giving direction, executing or implementing plans, and encouraging or motivating individuals (Burns, 2017) . There are several different leadership approaches which leaders illustrate in business, administrative areas or other fields. Some of the leadership styles include transactional, charismatic, transformative, democratic, laissez-faire leadership, and bureaucratic leadership among others (Mahajan, 2011) . This paper will examine and compare the charismatic, transactional, and transformational leadership styles in terms of their similarities, differences and the possible pitfalls of each method.
Charismatic leadership style depends on the leader’s persuasiveness and charm; such leaders are inspired by their commitment and convictions to their cause. Charismatic leaders are always identified in the instances of crisis and demonstrate outstanding expertise and commitment to their fields (Burns, 2017) . These leaders usually have clear visions in politics or business and the capability to engage with large audiences. However, charismatic leaders rely on the leader’s personality and actions and not on the structure or process. In other words, charismatic leaders are recognized as very skilled communicators, people who are verbally eloquent; they can communicate to their followers on a profound, emotional extent.
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Transactional leadership style prioritizes outcomes, conforms to the present organizational structure and it determines success based on the organization’s system of penalties and rewards (Mahajan, 2011) . Leaders have formal positions and authority of responsibility within an organization. Transactional leaders are known for maintaining routine by managing personal performance and supporting team performance. These leaders outline the criteria for employees based on the previously stated requirements. The performance reviews are considered to be the most common means to judge an individual employee’s performance. This leadership style best fits employees who understand their responsibilities and are inspired by the existing reward-penalty approach. Hence, the status quo of the firm or company is always maintained via transactional leadership. A transactional leader is perceived as an individual who emphasizes structure and order. Such a person is prone to command military operations, lead large organizations or international projects which need rules and regulations to meet objectives and goals on time or move followers and supplies in a way that is organized. But this leadership style is not appropriate for fields that need creativity and innovative ideas.
Transformational leadership style calls for leaders to lead or manage by example. Such leaders are at times recognized as quiet leaders. They appear to use inspiration, rapport, or empathy in engaging their subjects. Transformational leaders possess courage, confidence as well as willingness to sacrifice for the substantial benefits (Mahajan, 2011) . These leaders have a single-minded need to change or streamline things which no longer function. They inspire or motivate employees and know how to develop them into fundamental units which work well with others. In other words, transformational leaders tend to encourage individuals to attain unexpected or outstanding outcomes. This style offers employees independency over specific tasks and authority to make choices once they are trained.
Both charismatic and transformational leadership styles depending on the leader’s ability to influence and motivate followers (Uzonwanne, 2014) . Charismatic and transformational leaders motivate people to be better and work for the greater good of the society or organization. These leaders rally people around them to work for the common goal and objective. They also encourage boldness and initiative. Their differences lie mainly in the manner in which an individual is perceived. For instance, the personal vision of a charismatic leader has a massive deal of influence over the audience. Also, charismatic leaders talk about their ethical compass or passion instead of an existing approach of doing business.
Transactional leadership approach differs from transformational and charismatic leaders concerning method and structure. For instance, charismatic leaders emphasize influencing people or organization to make it a better place to work. Transactional leadership focuses on managing the performance of an individual and establishing how well an individual performs in a structured environment.
There are substantial differences between transformational and transactional leadership styles. For instance, transactional leadership is recognized as a telling leadership approach while transformational style is acknowledged as a selling approach. Whereas transactional style features negative and positive reward, transformational style puts emphasis on inspiration and motivation (Uzonwanne, 2014) . While transactional leadership is reactive, a transformational approach is proactive. Lastly, transactional leaders appeal to the self-interest of people, whereas transformational approach emphasizes team progress.
Transactional leadership style tends to reward employees only on a practical level such as perks or money (Mahajan, 2011) . It tends to limit creativity because the objectives and goals are already structured. Transactional leadership does not reinforce personal initiative.
Charismatic leaders develop arrogance, undoing the prior good deeds. Organizations that have become used to charismatic leadership can suffer if the leader leaves, retires or suddenly dies (Uzonwanne, 2014) . These leaders also tend to be unresponsive to their followers, and they do not learn from their errors, hence, accumulating them.
Transformational leaders are ineffective during the initial stage or ad-hoc circumstances. They need an existing structure to rectify. Also, they are not suitable in bureaucratic organizations or structures (Mahajan, 2011) .
References
Burns, W. (2017). A Descriptive Literature Review of Harmful Leadership Styles: Definitions, Commonalities, Measurements, Negative Impacts, and Ways to Improve These Harmful leadership Styles. Creighton Journal Of Interdisciplinary Leadership , 3 (1), 33. doi: 10.17062/cjil.v3i1.53
Mahajan, S. (2011). Study on Leadership Styles and Theories. Indian Journal Of Applied Research , 4 (3), 281-282. doi: 10.15373/2249555x/mar2014/86
Uzonwanne, F. (2014). Leadership styles and decision-making models among corporate leaders in non-profit organizations in North America. Journal Of Public Affairs , 15 (3), 287-299. doi: 10.1002/pa.1530
