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international journal for quality research udk 378 014 3 497 11 short scientific paper 1 03 transactional and transformational 1 leadership development through changes sran nikezi sveto puri2 jelena puri3 ...

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                                  International Journal for Quality research  
                                  UDK- 378.014.3(497.11) 
                                  Short Scientific Paper (1.03) 
                    
                                                                      
                                    
                                                      TRANSACTIONAL AND TRANSFORMATIONAL 
                                          1)         LEADERSHIP: DEVELOPMENT THROUGH CHANGES  
                         Srđan Nikezić
                           Sveto Purić2)              
                          Jelena Purić3)             Abstract: The success and rewarding are mostly expressed in 
                                                     business performance at the end of the year. Transactional and 
                       1) Faculty of  Science,       transformational  leadership  as  a  new  paradigm  of  quality 
                     University of Kragujevac,       effects on creation of roles and processes in the organization. 
                               Serbia                From the leaders are expected to use leadership as a process 
                    srdjan_nikezic@yahoo.com         of ensuring the long-term goals of the organization, especially 
                   2) Faculty of Law, University     in  turbulent  competitive  environment.  Therefore,  this  paper 
                       of Kragujevac, Serbia         points  out  the  impact  of  leadership  competencies  through 
                      svetopuric@yahoo.com           transactional and transformational leadership, characteristics 
                      3)Faculty of Economics,        and  processes  that  show  different  levels  of  participation  of 
                     University of Kragujevac,       transformation and transactional leadership of organizations. 
                               Serbia                 
                       jecapuric@yahoo.com           Keywords:  leader,  followers,  changes,  transactional  and 
                                                     transformat leadership, organization 
                                    
                    
                                                                         MacGregor  Burns  in  1979.  Burns  made  a 
                       1.  Introduction                                  distinction   between     ordinary    (transactional) 
                                                                         leaders,  who  have  ensured  the  followers  loyalty 
                    Theory  and  practice  show  that  transactional     through       rewards,        and      extraordinary 
               leadership is a necessary, evolutionary path toward       (transformational)  leaders,  which  focused  on  the 
               transformational  leadership  from  the  relatively       essential needs of followers. The idea was further 
               stable  to  a  period  of  business  in  a  turbulent     developed by Bernard Bass who was considering, 
               environment,  which  is  characterized  by  many          unlike    Burns's,    that   transformational     and 
               unknowns.  For  transformational  leadership  is          transactional  leaders  are  part  of  the  same 
               characteristic  interaction of different social actors,   continuum  of  leadership  that  can  not  be 
               initiative,  efficiency  and  effectiveness,  readiness   considered separately. [18] 
               for  change  and  variety  of  strategic  choices  in           
               accordance     with    the   requirements    of   the                  2.  Transactional leadership 
               environment and the perception of new vision and           
               business  goals.  It  is  an  evolutionary  path  that    The concept of transactional leadership was first 
               coexists with the changes in the environment and          mentioned by Max Weber in his socio-economic 
               transformational leadership inevitably occur as a         considerations of the organization. Twenty-seven 
               complex process based on the individual  vision,          years after his death and publishing a reprint of his 
               courage  and  willingness  to  learn,  openness  to       book, academic and professional audience accepts 
               followers and values that include better and more         his definition of leadership. [1] Max Weber first 
               efficiently,  based  on  the  radical  changes  in  the   described  transactional  leadership  style  and  his 
               organization and the environment.                         basic facts are accepted by Bernard Bass in 1981. 
                    Cox identified two basic types of leadership:        Great  influence  on  him  had  made  James 
               transactional      and     transformational.     [17]     McGregor Burns-a [2], whose study of leadership 
               Differences       between      transactional      and     was  the  cornerstone  for  further  development  of 
               transformational  leadership  was  first  formulated      leadership as a new area. 
               by Downton, but the idea is worked out by James 
                                                           Vol 6, No. 3, 2012                                                285 
                                                                                                                        
                                                                                        rationality  and  economic  activity.  [1,  335] 
                                                     2. Bureaucratic                    Examples  include:  a  feudal  kingdom  in  China, 
                                                      (Transactional)                   Egypt, Africa, the Roman Empire and others. 
                                                     Bureaucracy is "the                            
                    THREE OPTIONS                   exercise of control on                    •  Charismatic  leader  is  characterized  by 
                   FOR THE Capitalist                     the basis of                  dedication, illumination, and heroism. Followers, 
                        Entrepreneur               knowledge: (p. 339). It              on the basis of personal trust in the leader and his 
                                                    is the stuff of rational            intention,  consciously  accept  to  belief  in  his 
                                                       legal hierarchical               charisma, vision and mission. He is for them like a 
                                                          power, the                    warrior,  prophet  or  a  visionary.  Because  of 
                                                    Bureaucratic leader.                consideration  that  charisma  is  God's  gift,  leader 
                      1. Charismatic                                                    being  treated  in  such  a  way.  Weber  watched 
                         (Transformer)                3. Traditional                    charismatic leaders as: heroes in the war, leaders 
                  An individual personality                (Feudal)                     of the hunt, the wise men or shamans, and also as 
                    set apart form ordinary            Traditional is an                founders of religions like Christ in Christianity or 
                   people and endowed with           arbitrary exercise of              Muhammad in Islam. Thus, one type of charisma 
                   supernatural, superhaman        Sultan power bound to                is  a  hereditary  monarchy,  the  second  patriarchal 
                      powers, and heroic           loyalty, favoritism, and             authority, the third charismatic religious authority, 
                     qualities. In short part        politics. It is stuff of           and the fourth military heroes. 
                   Hero, and part Superman/          Princely leadership.                    Weber argued that no one of three leaders types 
                         Superwoman.                                                    occur an ideal form. [1, 329-333] Also argued that 
                                                                                        there  can  be  a  combination  of  bureaucratic  and 
                         Figure 1: Max Weber's (1947) Model of                          charismatic leadership.There are a few strongholds 
                      Transaction and Transformation Leadership                         in his conception of Leadership: 
                                             Authority                                        • Weber's model of leadership is dynamic and 
                                                                                        allows the transfer of leadership from one form to 
                  Max Weber has defined three types of leadership                       another. There is no ideal type of leadership 
                  and leaders:                                                                •  The  model  is  cyclical,  that  is  an  unstable 
                                  Bureaucratic - transactional leaders,                form  of  charismatic,  bureaucratic  form  can 
                  who earns leadership through normative rules and                      become a hybrid of the monarchy at the top. 
                  regulations,      strict    discipline      and  systematic                 •  Model  has  situational  character,  because 
                  control.  Obedience  of  followers  is  based  on                     Weber  explained  the  economic  and  social 
                  rational values and rules, and also on established                    conditions that support the selection of a particular 
                  agreements. Follower is limited to the obligations                    type of leadership. 
                  and controls which are set him. Wages are fixed                             •  Weber  stands  for  the  transformation  of 
                  and ranked in a hierarchy. Coercive measures are                      charisma into a democratic approach to leadership, 
                  clearly defined and their use is subject to certain                   which  respect  the  voice  of  followers.  The  new 
                  conditions  that  are  already  established.  The                     charismatic authority is based on legitimacy and 
                  technical side of follower has big importance and                     public  recognition.  Weber's  opinion  is  that  anti-
                  forms the basis for the selection of administrative                   authoritarian  direction  of  the  transformation  of 
                  staff.  There  is  no  right  of  appeal.  Capitalism,                charisma  present  the  way  towards  greater 
                  according to Weber, encourages the development                        rationality. [1, 390] 
                  of bureaucracy, even bureaucracy exist in socialist                         Bernard  Bass,  using  Burns  basis  of  a 
                  systems. [1, 339]                                                     transactional  leader,  start  with  characteristics  of 
                                  Traditional  leaders  believe  in  the               behavior and situation as basic level of exchanges 
                  legitimacy  of  governance  on  traditional  way.                     between  leaders  and  followers,  so  that  all 
                  Personal  loyalty  and  faithfulness  of  followers                   participants      get    something  they  want.  He 
                  dominant in this kind of leadership. The leadership                   identified  two  types  of  leadership:  transactional 
                  of     the     organization        is    characterized        by      and transformational. 
                  arbitrariness      and      iracionalnoscu        instead     of            Transactional leadership is based on classical 
                                                                                        principles of exchange with followers who are part 
                  286                                                            K.Ganguly 
                                                                                                                                            
                 of  interactions  and  therefore  are  rewarded  for           4)  Laissez-Faire  dimension,  which  is  a  form  of 
                 meeting  pre-defined  standards  and  performance.             leadership that provides the possibility of freedom 
                 Transactional leadership is focused on maintaining             in    the   choice  of  goals  and  behavior  of 
                 the status quo, so transactional leadership present            organizational participants. It is not real leadership 
                 traditional approach of leadership. [3] First Bass's           style,  because  of  impact  of  social  actors,  whose 
                 research  of  transactional  and  transformational             activities    were  not  coordinated,  limited  or 
                 leadership is related to the year of 1954 and 1960,            formalized.  The  leader  avoids  responsibility  for 
                 when  the  practical  examples  found  correlation             decision-making  and  because  of  that  he  often 
                 between  successful  leadership  and  perceptual               creates inefficient and unprofitable organizational 
                 flexibility.  He  also  came  to  the  conclusion  that        relationships.  [8]  Assumptions  of  transactional 
                 transactional leaders can be successful in a short             leadership are: 
                 period  of  time,  but  that  they  must  focus  on  the       • employees are motivated leader through rewards 
                 changes,  if  you  want  to  continue  to  retain  a           and punishments, 
                 leadership position.[4, 5] Transactional leadership            •  followers  receive  a  directive  from  the  leader, 
                 style  commonly  used  in  conditions  where  the              wich  mast  be  respected  through  production 
                 focus  of  leaders  focused  on  the  basic  process           process,  
                 control,  organization  and  short-term  planning.             • there is no self-motivation, but the follower are 
                 Examples for transactional leaders are American                controlled  by  leader  during  the  manufacturing 
                 and French politicians McCarthy and de Gaulle.                 process. 
                 Transactional leadership is utilized in the economy                  Transactional  leaders  are  focused  on  short-
                 after the Second World War until the 70's, because             term  goals,  standards,  procedures,  rules  and 
                 the  business  climate,  particularly  in  the  United         control.  Creativity,  vision  and  generating of  new 
                 States,  provided high level of stability that most            ideas  are  not  represented.  The  efficiency  (cost 
                 organizations did not felt the need for change, and            reduction)  is  the  key  variable  of  leadership 
                 consequently for the leadership, as the power that             competencies. The left side of the brain (rational 
                 leads  to  changes.  [6]  Transactional  leadership            behavior),  completely  dominated,  so  the  right 
                 involves  motivating  and  directing  followers,               brain  (emotional intelligence) is totally  excluded 
                 appealing to their own interests. The power of the             from leadership behavior. Followers are motivated 
                 leader    comes  from  formal  authority  and                  only by rewards and punishments, and the utility 
                 responsibility in the organization.The main task of            over money dominates the leader-followers. 
                 the followers to respect the instructions of leaders.                Transactional leadership focuses on the basic 
                 The leader provides rewards and punishments in                 functions  of  management,  control,  organization 
                 the  organization  of  its  legitimacy.  Transactional         and short-term planing. 
                 leadership is, in essence, oriented on monitoring                     Transactional  leadership  is  based  on  the 
                 organization,  processes  and  outcomes  in  the               assumption that employees are motivated by the 
                 market.     [7]   The  interpersonal  relationships            best    system  of  rewards  and  punishments. 
                 between  leaders  and  followers  have  a  four                Transactional  leaders  are  focused  on  standards, 
                 dimensional approach:                                          policies and procedures, as we have already said. 
                 1) The possibility of reward, as a result of well-             They  have  a  very  narrow  focus  and  do  not 
                 performed tasks and achieved goals that followers              encourage the creativity and new ideas. This style 
                 are  expected  to  successfully  completed  the                of  leadership  works  best  when  organizational 
                 process.  Goals  must  be  specific,  measurable,              problems  are  simple  and  clearly  defined.  [9] 
                 possible, realistic and timely manner (SMART).                 Inflexibility of leadership is a characteristic of this 
                 2) Actively engaging leaders in managing, which                model, so any attempt to change this leadership 
                 followed  the  work  of  his  followers,  gives                style is difficult and almost unsuccessful, because 
                 consideration  to  any  deviation  from  established           the leadership style is part of human person, his 
                 standards  and  procedures  by  taking  corrective             personal  characteristics  and  that  is  something 
                 measures in case of errors.                                    unchangeable. [10] 
                 3) Passive engagement leader involves the leaders               
                 in the process only when standards are not met, or              
                 performance are not achieved.                                   
                                                                         Vol 6, No. 3, 2012                                                287 
                                                                                                     
                       3. Transformational Leadership                     and the need to radically change their former way 
                                                                          of leadership. Second, the recent theoretical base 
                    As  a  term,  transformational  leadership  first     of  leadership,  which  is  based  on  an  analysis  of 
                was mentioned in 1973rd, in the J. V. Dowton's            personal  leader  characteristics  and behavior  in 
                sociological    study,.    [11]    Transformational       different situations,  not taking into consideration 
                leadership style is directly related to charismatic       certain,  quite  unusually, quality of leader. These 
                leadership  approach,  since  Max  Weber's time.          new qualities  demanded a new theory or a new 
                Robert  House  in  1976th  ,  start  approuching  the     concept  of  leadership.  It  is  the  concept  of 
                traditional literature on charisma and charismatic        transformational  leadership.  The  Figure  No.  2 
                leader,  and  concluded  that  through  the  selected     shows the key characteristics of transformational 
                literature from social psychology can be explaned         leader. [16]  
                                                                
                on a relevant way the concept of charisma. House                     Creativity 
                                                                
                has  considered  a  range  of  topics  related  to                   Team orietation 
                charisma,  including  the  charismatic  effects,                     Respect 
                characteristics   of   charismatic    leaders,   their               Coaching 
                behavior, and situational factors that influence on                  Responsibility 
                appearance  and  effectiveness  of  charismatic                      Confession 
                leaders. Based on these analyzes he was developed               
                speculatively  theoretical  explanation  of  charisma       Figure 2: The key attributes of transformational 
                starting from psychological forms, including a less                            leader [16] 
                sociological and political considerations. [12]                 
                    Musser was observed a charismatic leader as                Over  the  years,  Bass's  MLQ  (Multifactor 
                holder  of  double  function:  he seeks  to  wake  up     Leadership Questionnaire), known as FRLT (full-
                feelings to followers for ideological commitment          range  leadership  theory)  was  redefined.  New 
                to the goals and devotion to his own personality.         investigations of Burns-Bass's basic postulates of 
                Which of these two objectives will be dominant            transformational leadership theory were developed 
                depends on the motives and needs of the leader.           first  by  Conger  and  Kanungo,  fand  than  by 
                [13]  Conger  and  Kanungo  give  five  attributes        Kouzes and Posner. [19] Some researchers have 
                (characteristics) of charismatic leaders:                 tried  to  extend  this  concept  of  the  model  by 
                    • vision and articulation,                            proposing  introduction  of  so-called  "servant 
                    • responsibility for Environment,                     leaders"  and  "transcendent  leaders",  that  enable 
                    • understanding followers needs,                      followers to develop new knowledge (rational and 
                    • personal risk taking and                            transcendental).  [20,  21]  Nevertheless,  based  on 
                    • unconventional behavior. [14]                       available  information  from  the  industry,  Bass's 
                                                                          MLQ model / FRLT remained empirically most 
                    James  MacGregor  Burns  has  made  a                 valid test of theories of leadership in practice. [22] 
                fundamental distinction between transactional and         According  to  Burns  transformational  leader 
                transformational       leadership.       [2,      15]     recognizes  the  needs  or  demand  of  potential 
                Transformational leaders seek to change existing          followers and articulating their motives for trying 
                patterns, values, beliefs and goals, and create new       to  meet  their  requirements,  while  also  engaging 
                ones  that  encourage  the  greater  commitment.          followers as complete person. The result of such 
                Intense    commitment      to    the    concept    of     relationship    was  mutual  stimulation,  which 
                transformational leadership is the result of at least     ultimately  can  be  explaned  on  convert  follower 
                two tendencies. First, many large companies such          into  a  leader  and  leader  into  moral  agents.  Bass 
                as  IBN,  GM,  Ford  and  others,  started  a             identified  four  components  of  transformational 
                comprehensive  program  of  transformation  and           leadership: 
                change that had to be achieved in a relatively short           Charisma,  which  is  identified  with  the 
                period  of  time,  because  in   early  80-ies  of  last  followers'  perceptions  of  the  leader  as  an 
                century  business  world  has  become  more               idealized,  confident,  charismatic  leader  who 
                dynamic, competitive and volatile. Many, by then          captivates    with    confidence     and     attitudes. 
                a successful company, were faced with the crisis          Followers of such leaders are admired as a model 
                288                                                            K.Ganguly 
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...International journal for quality research udk short scientific paper transactional and transformational leadership development through changes sran nikezi sveto puri jelena abstract the success rewarding are mostly expressed in business performance at end of year faculty science as a new paradigm university kragujevac effects on creation roles processes organization serbia from leaders expected to use process srdjan nikezic yahoo com ensuring long term goals especially law turbulent competitive environment therefore this points out impact competencies svetopuric characteristics economics that show different levels participation transformation organizations jecapuric keywords leader followers transformat macgregor burns made introduction distinction between ordinary who have ensured loyalty theory practice rewards extraordinary is necessary evolutionary path toward which focused relatively essential needs idea was further stable period developed by bernard bass considering characterize...

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