The History Of Transactional Leadership Business Essay

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I have completed my surveys on two leadership styles and these surveys states that My current leadership style works out to be Participative or democratic. Which means that decisions are made in quick time and leaders have individual control over all decisions whereas on other side Group members are also engaged in the process of discussion to make decisions more accurate and this is a more creative style of leadership? From these surveys, I believe that my strengths include hard work, Trustworthy, patience, fast decision maker and have some weaknesses like short temper and lack of self confidence. So I believe that I have to do work hard for overcoming my weaknesses in order to become a skilled and a good leader to operate an organization smoothly and accurately. So to become a good leader the major areas of my weakness that I need to improve are meeting of deadlines, communication and pressure handling.


Equality: I believe strongly in justice and equality. When I work in a team, I make sure that all the team members are given equal opportunity to present their ideas. At my workplace I give fair and unbiased feedback to my seniors about my subordinates.

Motivate: I have a ability to motivate or encourage the peoples

Peaceful or cool mind:. I am a strong believer of non violence as well in sometimes some situations fed up me but I control my mind and handle the situation softly. I believe anything is achievable through peace, friendship and love as human beings are social animals. Principal's:- My belief in justice, honour and integritybecause by following this pathit easier to earn trust of people. My friends understand that I would most likely give an honest and balanced advice and make fair decisions.

Co-operate and peace: I believe in leading from the back and allowing others to think that they are in front. This way it is easier for me to maintain balance in my team.


Lack of build strategies: I am unable to do such a change the current situation. I lack tactics because of which I miss opportunities and as a leader I sometimes fail to influence people around me.

Lack of risk taking: I also accept that I sometimes make bad decisions. I try to accept my failure rather than defending myself. This helps me save time and move on to the next challenge.

Lack of resolving conflicts: I like to help people my friends, subordinates know that I will help them if need be. But sometimes while resolving the conflicts I make the decisions under some influence.

Emotional: I tend to get emotional about certain things or people, which affects my decision making ability as a leader. This causes an emotional outburst.

Areas to improve:

Communication network: - Accurate and timely communication is two important aspects to become a good leader. Working in a team all the important information out to all team member in a timely manner and then be able to collect team member's opinions to make a decision. So By improving the network of communication will help me to improve my relations with other as well help me to decision making. So I need to learn how I can communicate with my team members for effective communication.

Self confidence: To make effective decision and to provide and take suggestions I need to improve my self confidence:

Stop Judging: - The third behaviour that I would like to improve, avoid judging anyone for any reason either inside or outside of workplace. When I condemn other people, I demoralize the listener, and the self-esteem of the other person will be severely lowered.

Building Self-Esteem for Peak Performance: - To create an environment where people are relaxed and happy and feel good about themselves and their work. So to do this I need to raise my self-esteem. So everyone in the workplace and allow them to reach their peak performance.

1.2Leadership Theory

A. Democratic Leadership:

It is also called as Participative Leadership. It is the most effective leadership style where leaders give directions to the group members and also allow them to represent their views. I always use the democratic leadership style in my class with my classmates and at my work place as well. I strongly believe in team work. I am usually curious and appreciate the new and innovative ideas of my team members and try to implement and learn from that. Being democratic helps me to make effective decisions. It motivates every team member and abilities of every individual are improved as they participate in decision making process. For example while working in a team for a group assignment at the college, I maintain the Democratic style of leadership.

Qualities of democratic/Participative leadership:-

Open to Suggestion:-in this type of leadership manager requires to listen to others and consider their ideas. This democratic leader is respected by his staff for keeping his mind as well as his door open.

Team Builder:-Another quality of this leadership is that the leader guides his team to produce an originality that is a result of group accomplish. To do this, he must set a mix of diverse workers with sometimes conflicting ideas and methods. He works to use these differences to form a team that works efficiently and progresses through challenges both material and personal. 

Empowering:-The participative leader empowers others. This is someone who is willing to share the focus by giving employees the opportunity to make major decisions.

B. Transactional Leadership:

This leadership style starts with the idea that team members agree to obey their leader when they accept any task and follow the leader instructions. Leaders use their own way to achieve the task as well they change the way to do work if team member's work doesn't meet a suitable standard. In order to find faults and deviations, these leaders focus on their follower's work. Transactional leadership have some own benefits. According to this leadership style everyone's know their roles and responsibilities. it's also use to measure the team member performance if someone does not work well then leaders have choice to change their work as well method of to achieve the task as well they are able to divide the task and responsibilities according to people who are ambitious or who are motivated by external. On the dark side of this leadership style is that team members can do little to improve their job satisfaction. they can feel smother, and they can lead to high staff turnover. Transactional leadership is a type of management, but it does not a true leadership style, because in this style the main focus is on short-term tasks then long term task. It has serious limitations for knowledge-based or creative work. However, it can be effective in other situations.

C. Transformational Leadership:

Transformation leadership is often the best leadership style to use in business management. Transforming leadership is a process in which "leaders and followers help each other to advance to a higher level of morale and motivation.

Transformational leaders are inspiring because they expect the best from everyone on their team as well as themselves. This leads to huge output and engagement from everyone in their team.

The downside of transformational leadership is that while the leader's interest is passed onto the team, he can need to be supported by "detail people."

That's why, in many organizations, both transactional and transformational leadership styles are useful. Transactional leaders (or managers) ensure that routine work is done reliably, while transformational leaders look after initiatives that add new value.

It's also important to use other leadership styles when necessary - this will depend on the people you're leading and the situation that you're in.

Transformational Vs Transactional

Transactional Theory

Transformational Theory

1.Leadership is approachable and its basic point of reference is arrangement with present situational issues

1. Leaders are differentiated by their abilities to motivate and give individualize reflection, to their followers

2. Leaders work on benchmark criteria like contract forms, job description, incentive, punishment and authorize to control supporters. It does not focus on motivation only.

2. Leaders create learning opportunities for their followers and stimulate followers to solve problems

3. Leaders inspire supporters by putting objectives and hopeful rewards for required presentation.

 3. Leaders have good vision, theatrical and organization skills, to develop strong emotional bonds with followers

4. Leadership depends on the power of the leader to subordinates to strengthen their successful completion of the sale.

4. Leaders inspire supporters to work for objective.

1.3Leadership Role models

Peter Fraser's:

Peter Fraser was the Co-founder of New Zealand Labour Party. He was also involved in many social and political parties like New Zealand Socialist Party, Social Democratic Party. He also became Minister of Health, Minister of Education, Minister of Marine, and Minister of Police.

His Leadership Qualities includes hard working, intelligent, skilled and experienced leader, courageous, passionate and energetic. He is very direct on his words and always shows the real picture what's exactly happening in order to let people know real things.

I believe that his style of leadership matches with Democratic/Participative style of Leadership as he is an intelligent and experienced political leader who leads his nation through to the way of success.

He played a large part to introduce and pass out the Maori Social and Economic Advancement Act, which helps Maori to cope with the problems of poverty and increasing urbanisation. He implements a number of measures to reduce inequalities. Labour party has a great role to criticise the nuclear weapons testing and declare New Zealand as a nuclear free zone. He introduced an unemployed workers bill for a scheme of contributory unemployment insurance.

Sir Stephen Tindall:

Sir Stephen Tindall is the founder of New Zealand retailer stores The Warehouse Group and he is also the founder of the Tindall Foundation. He is awarded one of the most influential business people NZ has ever produced. He founded The Warehouse Group in 1982 with initial capital of NZ$ 40.000 and his leadership style has transformed it into a $1.1 Billion (market cap) with sales exceeding $1.6 Billion.

I have chosen Sir Stephen Tindall here because he is a kind of transformational leader which I actually want to follow. He certainly believes in transformational approach to leadership as it clear from his actions. Not only in his own company but he wants to help every New Zealander in achieving their goals, to assist New Zealanders in need he set up Tindall Foundation in 1995. Since its being set up Tindall Foundation has already donated more than NZ$ 100 million to community and organizations and towards initiatives around New Zealand. He was named Business Person of the Year 1997 by New Zealand Herald. Sir Stephen Tindall has reformed the way we do retailing in New Zealand. Sir Stephen Tindall was a founding member of the New Zealand Institute, a think tank with 30 corporate members formed to contribute creative ideas and solutions to the policy debate, which will positively transform New Zealand in the years ahead.

Another reason why Sir Stephen Tindall qualifies for transformational leadership approach is that they care for society, not only for their own employees or company. Their approach is clearly depicted form the mission statement of their company "where people come first and the quality is affordable


Peter Fraser's

Sir Stephen Tindall

His leadership style is participative.

He has a ability to show the picture through his words.

As a participative leader to grow country economically strong he introduced an unemployed workers bill for a scheme of contributory unemployment insurance.

His leadership style is transformational.

He is also very clear for his action.

As a transformational leader for helping community services and development he set up Tindall Foundation.

Benchmarking Criteria

For setting up of benchmarking criteria, I will be using Participative leadership approach. I will be listing qualities of this leadership approach as a benchmarking framework for my own personal development:-


Vision: The first and essential quality of a participative leader's or to become a good leader is a clear vision of the future they must know about how to plan or achieve the desire task, how to handle the unexpected situation as well as a strong hold on what success looks like and how to aim it or a way to find out what is our objectives and how to move in that direction.

Self-confidence: Participative leaders have a very high level of self-confidence because a confidence person motivate or encourage the peoples as a leader by concerning the needs of peoples. We will become an inspiration for others to increase their confidence. So that why it's is an essential element of my personal development benchmarking because self confidence inspire the person abilities to do things or leads others If you believe in yourself, only them you can convince others to believe in you.

Social Responsibility:All Participative leaders have high sense of Social Responsibility. To become a good leader it is important because it is basic draft plan for leader's to be aware about socially responsible. Remember leaders and followers both are also belong to society, so for me to become a good leader i must aware about social responsibilities.

Empathy: This is very important quality of leadership as in this a leader will have a caring sense for his team members in an organisation. To become a good leader always care and admire the team members thoughts and feelings. By sharing thoughts and feelings we are able to help each other and face and solve many problems. We can prove this quality by concerning the above two leaders have this quality which has a great influence on their leadership style. So I think it's very important for me to lead others.

Patience for decision making: To make good and for effective decision a good leaders are accepting of doubt and remain calm in all situations to make perfect decisions. This quality is must be needed for me to become a good leader. Because am able to take correct decision if my brain is in calm situation.

Proactive approach- It helps me to achieves higher employee morale and participates personal and organizational goals.

Section 2: Self-Assessment


Here I would like to rate myself to measure leadership skills with above leadership criteria. I am using 5 standards rate scale that is as follows:

1: Excellent

2: Very Good

3: Good

4: Average

5: Below Average

S. No

Leadership Quality

Rating Scale





Self Confidence



Social Responsibility






Patience for decision making



Proactive approach



In reflection section I am going to describe about my preference towards leadership styles, potential and goals. I have explained my leadership style through surveys and my survey research describe my leadership style that I have more interest in participative style of Leadership because this suits me according to my leadership qualities. According to me, I think my culture play a important role as well has a great influence on my qualities and decision making styles. I strongly believe in team work rather than to work individually because firstly it saves time and it helps to solve a problem easily because all members are working together and its easy to share ideas because everyone have their own ideas according to their ability so there is a option to choose which solution is better so we can say team work provide new ideas and suggestions given by team members. Another benefit of working in a team that It helps to improve communication skills in order to communicate with the people from different cultures whose languages are different, customs and norms are different so it provide me a chance as well helps me as well others to build a well-diversified cultural workplace.. I have many qualities to become a good leader like I have a quality of fast decision making, hardworking and also I have good knowledge of Computer. I am very Task oriented Person. I have skill to understanding the goal and planning how to achieve the desire goals. I always tried to achieve those goals with my modern ideas. . I use my conceptual skills in my daily life like especially in workplace and empower my team members and subordinates. I have a quality of fast decision making as well I have a quality of risk takingand I don't hesitate to try new ideas and ways to increase the efficiency and effectiveness its helps me to make decisions according to the situations. I possess some technical skills as well. At my job I know my responsibilities and have all the knowledge required to do my job. I try to use resources in such a way that the effectiveness and productivity of the work can be increased. I always try to be helpful for others at any time. I always try to motivate, encourage and help others. I have learned from my mistakes which I have done, that make me capable to facing any situation or problem and it increase my organising skills. I always try to improve my skills in which I am lack off, and become a source of inspiration for others and to gain my qualifications successfully. I also want to change myself according to the situations and to become a well-respected personality.

Section 3: Personal Development Plan


Short term goals:-To attain Degree in computing specially in hardware field.

Long term goals:-To get a good job as computer technician in multinational company.

One of my goal is to start my own computer hardware business.


Short term goal: To attain Degree in computing specially in hardware field:- The reason behind this short term goal is qualification and knowledge achievement to get more knowledge in computing field as I have relevant diploma in computing as well in electronic field.. Once I complete this degree it makes me more aware of the computing world which will greatly help me in my career development.

Long term goal:-To get a good job as computer technician in multinational company:- The reason to choose this long term goal is as I did relevant study in as computing as well electronic as well program logic control so I think its help me to get experience in computing field and help me to develop my future and give me a chance to learn business skills to start my own business.

My dream goal is to start my own computer hardware business:-I have selected this because after get knowledge and experience I am able to handle my own business and I have the abilities to lead an organisation successfully and contribute for the welfare of the country.


Short term goal:-To attain Degree in computing specially in hardware field:- My strategies to achieve this goal successfully is to attend all the college classes and gain as much knowledge as I can get through teachers, books, online reserach and workplace as well and try to do more and more practical work.

Long term goal:-To get a good job as computer technician in multinational company:- for to achieve this goal my strategies firstly I try to get experience like working under any small company as well volunteer work.

My dream goal is to start my own computer hardware business:- I always try to get some experience to be able to lead an organisation and improve my organisational skills to run my business as well become a good leader which will help me start my own business.


Short term goal:-To attain Degree in computing specially in hardware field it's my best try to start my degree to earlier intake in polytechnic. Its take 2 years.

Long Term goal:-To get a good job as computer technician in multinational company after my study I try to get experience for working under any multinational company. So I need 1 year to become myself perfect as a computer technician.

My dream goal is to start my own computer hardware business:-After 2 years study and more then 4 year experience I think I am become able to start my own business so include study as well work experience time its totally take around 7 years to establish my business.


Short term goal:- To attain Degree in computing specially in hardware field,feedback from my teachers, classmates during my group presentations, group assignment helped me to measure my development results.

Long term goal:-To measure my skills as a computer technician in multinational company. My study result as well practical knowledge help me to find a good job. As well Any appreciation or reward at my study place as well work place for resolving any conflicts and taking risks to implement new i ideas for the profitability of organisation. Assessments and tests to measure my knowledge and skills.

My dream goal is to start my own computer hardware business:-by getting feedback for my work place colluges as well company senior or any reward that's show my skills these things help me or become able me to start my own business.


To achieve the desired goals both short and long term, I will need resources which gives me ability to think more clearly and logically. The possible resources to learn, experience and improve are idols, books and internet material.