The current business environment has become far more dynamic as the humans captured the core of it as its prime capital, than it was anticipated, and for that matter, the old concept of thrusting more on financial or asset capital has taken a backseat, and thus the concept of earning more with less has just reversed with giving more at less, which has been guided by the rapid development of science and technology, where a wave of newer products with shorter life-span has completely changed the business proceedings – today’s digital products are the greatest examples of that.
Accordingly, the market strategy too has changed, where the organizations are “creating” the business opportunities and exploiting it – for example, the digital printers are now being offered at throwaway prices, because that would “create” the business of printing materials, which they can “exploit”. Thus this is a situation where the traditional pattern of leadership cannot walk tall with its fixed principles, as that would fail to meet the challenge of the time, and subsequently, people associated with business would also suffer.
Keeping this in mind, this paper now goes on the check the available leadership styles, before deciding on the most appropriate one. Leadership Styles Like they say, there are only two subjects in the world like history and mathematics, the world of leadership too can be divided into two broad categories like transactional and transformational leadership, containing various avatars of them.
Transactional Leadership Here the leader-follower relationship depends on mutual satisfaction through transaction, and therefore, motivation is generated through tangible items of self-interest like money or rank. Here the followers’ response is based on compliance and accordingly, the goals of the leaders and the followers fall apart (Brown & Moshavi, 2002).
This hardcore situation in this model was later softened a bit with the introduction of Leader-Member Exchange (LMX) theory, the leader is supposed to form a coterie with competent followers who would also share an amount of power and facility, in a way, facilitating the process of role-making and developing different exchange relationships over time with other followers (Dansereau, Graen, & Haga, 1975). Transformational Leadership Transformational leadership involves ethics and sets long-term goals (Northouse, 1997).
According to Steven Covey, the author of 7 Habits of Highly Successful People, “the goal of transformational leadership is to ‘transform’ people and organizations in a literal sense – to change them in mind and heart; enlarge vision, insight, and understanding; clarify purposes; make behavior congruent with beliefs, principles, or values” (Covey, 1992). J. V. Downton coined it for the first time in is book Rebel Leadership: Commitment and Charisma in a Revolutionary Process in 1973, which was later introduced as a concept by James MacGregor Burns in his book Leadership in 1978.
(Transformational, 2007). Burns produced a definition for transformational leadership – ” it occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality”(Burns, 1982 pp. 20-44). Inspired by Abraham Maslow’s famous ‘Theory of Human Needs’, he set his perspective of transformational leadership with high level of self-esteem and self-actualization to see an authentic transformational leader.