Premium Essay

Case Study - Comparison of Transactional and Transformational Leadership

In: Business and Management

Submitted By oleeleo
Words 3339
Pages 14
Comparison of Transactional and Transformational
Leadership: Case Study of the Difference between
William Wong (Lukfook Jewelry) and Yu-tung Cheng
(Chow Tai Fook Jewelry) Leadership Styles

i

TABLE OF CONTENTS
1.

Introduction ............................................................................................................ 1

2.

The literature review of leadership......................................................................... 2
2.1. Transactional leadership ............................................................................... 3
2.2. Transformational leadership......................................................................... 4

3.

Jewelry industry in Hong Kong................................................................................ 6

4.

Leaders’ background ............................................................................................... 7
4.1. Background of William Wong ....................................................................... 7
4.2. Leadership style ............................................................................................ 8
4.3. Background of Yu-tung Cheng ...................................................................... 9
4.4. Leadership style .......................................................................................... 10

5.

Comparative analysis on leadership ..................................................................... 11

6.

Conclusions and recommendations...................................................................... 13

References .................................................................................................................... 15

LIST OF FIGURES
Figure 2.1 Full range of leadership model ..................................................................... 3
Figure 5.1…...

Similar Documents

Premium Essay

Transactional vs. Transformational Leadership

...Transactional Leadership vs. Transformational Leadership: What’s My Style? John E. Kaiser MADS 6661-82: Managing Organizational Change Fairleigh Dickinson University After researching and evaluating the differences between Transactional and Transformational Leadership styles I believe that I practice more of the Transformational style, however, there are certain situations that do necessitate the use of Transactional Leadership. As has been said time and time again by “leadership theorists”, no one style of leadership is perfect for all situations; effective leadership requires the ability to understand and practice a number of leadership styles depending on the situation. I believe that the Transformational style is more employee centered and employee enabling in that its focus is on the overall improvement and achievement of both the organization and the employee. Transformational Leadership allows for the empowerment of the employee, through his or her own focus and abilities on self improvement and growth. It allows for the employee to grow through their own motivations and desires as being a stakeholder in their own destiny within the organization. Unfortunately, the Transformational style is not for every employee, or rather, every employee may not have the self motivation for self improvement not only for themselves but also for the betterment of the organization. There are those times......

Words: 429 - Pages: 2

Premium Essay

Comparison Matrix of Leadership Studies

...Comparison Matrix Paper Grand Canyon University LDR801 Danny Pondy August 14, 2013, Introduction This is a comparison of the articles on Transformational Leadership in the Public Sector: Does Structure Matter by Wright and Pandey to that of Transactional and Transformational Leadership Styles on the Organizational Commitment and Job Satisfaction of Customer Contact Personnel, by Emery & Barker to that of, The reality of Web-Based Interaction in an Egyptian Distance Education Course by Alaa Sadik. The article by Wright and Pandey outlined their view of leadership that is defined as transformational. Their structure of better performing bureaucracies has support of an elite level of transformational leadership. The other article to be reviewed focuses on transformational leadership by investigating transactional outcomes of leadership styles with managers. This article by (Barker& Emery, 2007), further details how employee organizational commitment and job satisfaction had a direct correlation to transformational and transactional style of their mangers. The third article by Alaa Sadik focused on the Reality of Web-Based Interaction in an Egyptian Distance Education Course (2008). Sadik focused on instruction and tools to provide improved interaction of students in an asynchronous learning environment. A comparison of the research questions posed for the studies Research questions in the three articles were presented by the authors.......

Words: 2522 - Pages: 11

Premium Essay

Transactional and Transformational Leadership

...cannot function without leaders. Leader is the most substantial element of successful organizations. Becoming outstanding leaders, leadership skill is vital in order to drive the organizations forward. Several leadership principles are extensively used these days. Burns (1978) identified two types of leadership comprise of transactional and transformational leadership. Hence, leaders should be capable to indicate which theory should be applied in accordance with organization’s culture and objectives. This essay aims to evaluate the resemblances and the differences between transactional and transformational leadership as well as the feasibility to utilize a mixture of them by giving the definitions and examples followed by the supporting researches and studies. Initially, transactional and transformational leadership are different in terms of implementation and its outcomes. However, transformational leadership was developed from transactional leadership (Downton, 1973). Bass (1985) defined transactional leadership as an exchange activity that leaders execute to motivate subordinates in order to achieve their tasks by giving out reward or punishment correspond with their performance. Additionally, active and passive management by exception are taken into account when it comes to misconception and faults. Bass (1985) stated that transformational leadership emphasizes the value of subordinates, encourages them to perform extra effort, and assures their comprehension on......

Words: 1634 - Pages: 7

Premium Essay

Transformational and Transactional Leaders in Higher Educationpdf

...Transformational And Transactional Leaders In Higher Education Lloyd Moman Basham Texas A&M University-Commerce Abstract This paper discusses the following issues: (1) the climate, environment, challenges, and issues in higher education; (2) an overview of leadership and its application to education; (3) transformational leadership as the current focus on concepts relating to organization leadership; (4) transactional leadership as being management by exception; and (5) a comparison of transactional and transformational leadership. Climate, Environment, Challenges, and Issues in Higher Education The growing consensus among educators and policy-makers is that the current process of education must change dramatically. A different approach is needed to prepare today’s leaders to meet tomorrow’s challenges. The new structure should enhance preparation, allowing for innovation and futuristic thinking in a collaborative setting (Rodriguez, 1999). Americans, at all levels, have had great faith in the power of education to improve their quality of life. Education has been viewed as an escape route from poverty, an antidote to intolerance born of ignorance, a primary source of national prosperity, and the foundation of democracy (Swail, 2003). Scientific and technological advances have intensified in the past two decades and for the first time in human history created a truly global community. Modern telecommunications have linked all the corners of the planet as never before. Like......

Words: 5371 - Pages: 22

Premium Essay

Transformational Leadership

...CHAPTER [ 3 ] Charismatic and Transformational Leadership The purpose of this chapter is to help the reader understand the nature of charismatic and transformational leadership. Although the two forms of leadership overlap, they are treated separately here because the study of charismatic leadership focuses so heavily on personal traits. The legitimacy of either of these forms of leadership as a separate entity has been challenged. Nevertheless, studying charismatic and transformational leadership represents an important current thrust in understanding the leader’s role. CHAPTER OUTLINE AND LECTURE NOTES The study of charismatic and transformational leadership, an extension of the trait theory, has become an important way of understanding leadership Charisma facilitates leaders carrying out their roles. [ I ]. THE MEANINGS OF CHARISMA Charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others. The various definitions of charisma have a unifying theme. Charisma is also a positive and compelling quality in a person that creates a desire in many others to be led by him or her. The attributes of charisma are important because they lead to behavioral outcomes such as commitment to the leader, self-sacrifice, and high performance. A study with law enforcement workers and business students showed that network members influence our attributions of charisma. [ A ]. Charisma: A Relationship Between the......

Words: 3660 - Pages: 15

Premium Essay

Transformational Leadership

...NAME: Amira Mustapha Yabo COURSE: MGT200 TOPIC: Transformational Leadership Transformational Leadership * Introduction Transformational leadership as stated by Wikipedia, defines Transformational leadership as “leadership which enhances the motivations, morals, and also performance of followers through a variety of mechanism”. In other words, transformational leadership could be termed as a type of leadership that could inspire change positively to everyone who follows. A transformational leader is one who possesses the skill set to motivate and inspire people who follow his/her footsteps. Transformational leaders are usually full of energy, ideas and are very passionate. (Wikipedia) The entire concept of transformational leadership was introduced by presidential biographer James MacGregor Burns. He related his theory to that of the difficulty in differentiation between management and leadership then said the only difference were in behavior and characteristics. Burns developed two different theories – Transformational leadership and Transactional leadership. It said that transformational approach made way for change in the organization and life of the employees. He believed that leaders and followers could help each other advance to higher levels if the work together. Unlike the transactional approach where only the leader benefits. Burns also believed that because of the vision and personality that leaders have, they can easily change the expectations and......

Words: 2864 - Pages: 12

Premium Essay

Transformational Leadership

...What is Transformational Leadership? Is there a relationship between transformational leadership and emotional intelligence? Introduction For more than three decades, the paradigm of transformational leadership has attracted a vast amount of academic interest. A large number of empirical studies lend credibility to this interest by linking aspects of transformational leadership to a range of positive organisational and individual outcomes (Bass, 1997; Bass & Avolio, 1994; Lowe, Kroeck & Sivasubramaniam, 1996). Due to these desirable effects, a significant amount of research has also been undertaken in trying to understand factors that predict or contribute to transformational leadership behaviours. For this reason, the relationship between emotional intelligence and transformational leadership is one that has attracted much attention. The following paper examines this proposition in more detail. In order to gain a more detailed understanding of transformational leadership and its relationship with emotional intelligence, the paper first examines the two subjects as standalone concepts. In determining if and how a relationship exists, the paper subsequently brings the two constructs together so that a critical examination and analysis of the research available can be undertaken. Lastly, after examining the case for and against a relationship, a conclusion is drawn from the analysis presented. Transformational Leadership The notion of transforming leadership was first......

Words: 2991 - Pages: 12

Premium Essay

Comparison and Contrast of Trait-Based, Situational, and Transformational Leadership Theories

...COMPARISON AND CONTRAST OF TRAIT-BASED, SITUATIONAL, AND TRANSFORMATIONAL LEADERSHIP THEORIES 1 Comparison and Contrast of Trait-Based, Situational, and Transformational Leadership Theories Ciprian Patrulescu Electronic copy available at: http://ssrn.com/abstract=2132126 COMPARISON AND CONTRAST OF TRAIT-BASED, SITUATIONAL, AND TRANSFORMATIONAL LEADERSHIP THEORIES 2 Abstract This research paper compares and contrasts several leadership theories, the evolution of the theories, and future research implications. The leadership theories discussed in the paper include the trait-based, situational, and transformational leadership theories. Trait-based theories represented the earliest attempts to quantitatively study leaders and leadership effectiveness by focusing on the innate skills and traits of the person. Situational theories expanded to explore the influence of different situations on leadership. Lastly, transformational leadership theories further expanded on the role of the leader in motivating followers through inspiration. Electronic copy available at: http://ssrn.com/abstract=2132126 COMPARISON AND CONTRAST OF TRAIT-BASED, SITUATIONAL, AND TRANSFORMATIONAL LEADERSHIP THEORIES 3 Comparison and Contrast of Trait-based, Situational, and Transformational Leadership Theories There are almost as many definitions of leadership as there are persons who have tried to define leadership (Stogdill, 1974). The definition of leadership by Weathersby......

Words: 6280 - Pages: 26

Premium Essay

Case Study Power and Leadership

...Benjamin Genous DeVry University Week 6 Assignments –Case Study Management 303 1. Brief describe the five kinds of power available to leaders and/or managers. I. Reward power, means an employee believes they are going to get some type of reward for doing their job. The reward could be pay, days off, etc. The employee believes the reward will be coming from the supervisor. II. Coercive power is a supervisor intimidating an employee to do the work or they can be fired or demoted. This can be compared to someone having a power trip complex. III. Legitimate Power, does an officer believe that the orders being given are true even if they may be coming from a higher power that does not normally give out orders to the police. An example used is an officer receiving powers from the Chief of Police and the commanding officer follows through to make sure their officers are conducting the instructions. The officer believes in his commander as he works with them all of the time and although the Chief is the highest manager, the officer knows that the commander is the one who will be making sure follow through takes place. IV. Referent power is when one person has an attraction somehow to the person giving the power. The individual will basically do anything the person with power says because the attraction is so strong. An example could be a group of teens with one teen just trying to become one of the members and they tell him to jump off a bridge. The......

Words: 2258 - Pages: 10

Premium Essay

Transactional vs. Transformational Leadership

...heteroskedastic (ARCH) class of models introduced by Engle (1982). The ARCH model and its various extensions have proven very effective tools along these lines. In truth, by any yardstick, the literature on ARCH has expanded dramatically since the seminal paper by Engle (1982). It is hope that this overview of the extensive ARCH literature may serve as a catalyst in fostering further research in this important area. Engle, R.F. (1982) “Autoregressive Conditional Heteroskedasticity with Estimates of the Variance of U.K. Inflation”, Econometrica, 50,987-1OO8. EGARCH For comparison to the TGARCH and GJR-GARCH above models, a radically different specification is used for the FIB density data. Take the place of the Generalized Error Distribution, asymmetric normal distribution is used. The same variables which are used in other models are used for this specification too. Using the different set then the comparison would have been difficult. Turbidity, rainfall, dew point, and cloud cover are significant variables. In the model specification, the skewed normal is replaced with a normal distribution making it a fixed symmetric GARCH model. The consequence of the model estimation differs from the EGARCH with the skewed normal distribution. In stark contrast, all the exogenous variables are significant. GJR The GJR model is a GARCH variant that includes leverage terms for modeling asymmetric volatility clustering. In the GJR formulation, large minus changes are more......

Words: 733 - Pages: 3

Premium Essay

Transformational Leadership

... Comparison and Contrast of Leadership Theories Bobbi Warford University of Phoenix Table of Contents 1. Title Page………………………………………………………………….1 2. Table of Contents………………………………………………………….2 3.0 Abstract……………………………………………………………………3 4.0 Introduction………………………………………………………………. 4 5.0 Comparisons and Contrast………………………………………………5-6 6.0 Similarities and Differences……………………………………………..6-7 7.0 Conclusions……………………………………………………………...7-8 Abstract This paper discusses the comparisons, contrast, similarities and differences of the “Great Man” theory, Trait theory, Relationship theory, and Management theory. Great man theories and Trait theories were similar more than different. Transformational is more similar to charismatic leadership than transactional. 4.0 Introduction Great Man theories assume that the capacity for leadership is inherent that great leaders are born, not made. These theories often portray great leaders as heroic, mythic, and destined to rise to leadership when needed. The term “Great Man” was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership (About, Inc., 2007). Trait theories similar in some ways to “ Great Man” theories, trait theories assumes that people inherit certain qualities and traits that make them better suited to leadership. Trait theories often......

Words: 1325 - Pages: 6

Premium Essay

Transformational Leadership

...Leadership Styles 2 Transformational Leadership 2 Individualized consideration 2 Intellectual Stimulation 2 Inspirational Motivation 2 Idealized Influence 3 Introduction Leadership Styles The performance of a company is very much dependent on how it is led by his owner. However, family businesses are not structured as strictly as other large organizations{Bernhard, 2011, Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors}{Bernhard, 2011, Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors}{Bernhard, 2011, Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors}. Consequently, employees possess more freedom to interpret their work task and are not as much restricted in their field (Bernhard & O'Driscoll, 2011, p. 8){Bernhard, 2011, Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors}{Bernhard, 2011, Psychological Ownership in Small Family-Owned Businesses: Leadership Style and Nonfamily-Employees’ Work Attitudes and Behaviors}. Since I am investigating the application of leadership styles to family businesses, I narrow my focus to three particular ones which are transformational, transactional and passive leadership. {Bernhard, 2011, Psychological Ownership......

Words: 1030 - Pages: 5

Premium Essay

Transactional Leadership

...Discuss the reasons behind the current enthusiasm for transformational leadership and comment upon the adequacy of the theory Introduction On the threshold of the 21st century, organizational strategy highlights the importance of the effective utilization of knowledge and human resources (Ying, Ken and Ting, 2012). To compete in such circumstances with the rapid diffusion of information, organizations must improve employees’ professional skills and knowledge to maintain their competitive advantage to some degree. In this case, understanding the effectiveness of leadership is crucial. The evolution of leadership theories have generally transited from a stage that focused on personal features to the next, which is more dependent on the interaction between leaders and subordinates. Recently, leadership research has accentuated the effectiveness of transactional and transformational leadership (Tyssen, Wald and Heidenreich, 2014). Compared with transactional leadership, some scholars have argued that transformational leadership could result in a higher level of work engagement in a dynamic environment (Brief and Weiss, 2002). However, although transformational leaders could bring positive affect on employers’ behavior in several aspects and could also instigate a collaborative work environment, it is possible for employers to become over-reliant on them. In addition, it is undeniable that cultural values will have a pervasive influence on different aspects of management......

Words: 3442 - Pages: 14

Premium Essay

Transformational Leadership

...|  Transformational Leadership: Characteristics and Criticisms   Iain Hay School of Geography, Population and Environmental ManagementFlinders University         A prime function of a leader is to keep hope alive. (John W. Gardner)Nothing great was ever achieved without enthusiasm. (Ralph Waldo Emerson)Setting an example is not the main means of influencing another, it is the only means. (Albert Einstein) Collectively, these three short quotations capture some of the key characteristics of transformational leadership, a form of leadership argued by some (Simic, 1998) to match the Zeitgeist of the post-World War II era. Academic debate about the nature and effectiveness of transformational leadership has developed since key work on the topic emerged in the 1970s.  This short paper sets out to provide summary answers to three main questions about transformational leadership. What is it? How is it applied? What are some of its key weaknesses? In the course of the discussion, the following pages also provide a brief background to the origins of transformational leadership theory and point quickly to a possible theoretical future for a transformed transformational leadership.  Transformational Leadership TheoryAccording to Cox (2001), there are two basic categories of leadership: transactional and transformational. The distinction between transactional and transformational leadership was first made by Downton (1973, as cited in Barnett, McCormick & Conners, 2001) but the idea...

Words: 24361 - Pages: 98

Premium Essay

Transformational Versus Transactional Leadership

...TRANSFORMATIONAL VERSUS TRANSACTIONAL LEADERSHIP LDR550Z-Leadership and Team Development-Fall 2011 Abstract This research paper addresses various aspects of transformational and transactional leadership styles. It mainly presents a comparative overview of these leadership styles. Further, it talks about an example of each transformational and transactional leadership in real-world. This leads to mentioning various applications that each leadership style finds in today’s business. Analysis of strengths and weaknesses or potential growth areas of both leadership styles is mentioned to help in better understanding of the subject. At last, the paper concludes with some discusses if knowing one’s leadership style and leadership style of your leader is important or not. Introduction In today’s volatile economy, the business is rapidly changing and getting more competitive with each passing day. Therefore, in order to survive in this market, the organizations need to continuously come out with innovative solutions. In these situations, transformational leaders play a vital role by encouraging creativity from their followers and maximizing their performance and productivity. On the other hand, transactional leaders are needed to maintain the stability and achieve goals on a regular basis. In order to analyze or compare these two styles of leadership, a brief introduction to both the styles is needed. Transformational Leader According to Bernard Bass,......

Words: 2760 - Pages: 12