Transactional and Transformational Insurance Leadership Theories
Although Burns (1978) is still credited with the identification of transactional and transformational leadership, Downton (1973) coined the term “transformational leadership” in his book Rebel Leadership: Commitment and Charisma in the Revolutionary Process. He examined the variations in leadership of ordinary, rebellious, revolutionary, and reform leaders. Burns’s research made a lasting impact on political leaders. He was intrigued with politicians’ power and influence (Hollander & Offermann, 1990). To Burns, power was a positive term and had two components: resource and motive. Both components could be viewed by the leader and follower. For instance, a leader could utilize …show more content…
Additionally, he felt that transactional leadership was more common in organizations than transformational leadership (Judge, 2004). Tracing the origins of the charismatic leadership theory links the development of transactional leadership and transformational leadership together (Bono & Judge, 2004; de Vries, 2008). Zaleznik’s (1977) research similarly explored the differences between transactional and transformational styles. He found that leaders developed goals for their followers first by assessing the followers’ needs. Secondly, leaders determined feasible, realistic, and achievable goals (Zaleznik, 1977). Zaleznik’s study validated Burns’s (1978) belief that transactional leaders comprehend what their followers’ workplace needs are and strive to help them reach their goals if their performance is acceptable (Avolio & Bass, 2004). Bass’s (1985) research followed the same lines as Burns’s (1978), but it broadened the scope of charismatic characteristics of a leader in an attempt to refine the process of transactional and transformational leadership. Unlike Burns, Bass was convinced that these two leadership types should not reside on separate ends of the spectrum. Bass acknowledged they were two distinct models; however, he felt that superior leaders must exhibit behaviors associated with both transactional and …show more content…
Prior to assessment of the items, these students were briefed in detail on the concepts of transactional and transformational leadership. The students then sorted the 142 items into three categories that included transactional, transformational, and laissez-faire. An item was kept for further scrutiny if eight out of the 11 students acknowledged it as transformational and none of them acknowledged it as transactional. The same procedure was followed to determine if an item was acknowledged as transactional. Seventy-three passed the scrutiny test and were revised for a different questionnaire. Further research produced the original seven leadership factors: Charisma, Inspiration, Intellectual Stimulation, Individualized Consideration, Contingent Reward, Management-by-Exception, and Laissez-Faire. However, the original version of the Multifactor Leadership Questionnaire, or the MLQ Form 1, combined Charisma and Inspiration due to the high correlation of these factors. Bycio, Hackett, and Allen (1995) persuaded Bass to combine these factors, which resulted in a six-factor
Although Burns (1978) is still credited with the identification of transactional and transformational leadership, Downton (1973) coined the term “transformational leadership” in his book Rebel Leadership: Commitment and Charisma in the Revolutionary Process. He examined the variations in leadership of ordinary, rebellious, revolutionary, and reform leaders. Burns’s research made a lasting impact on political leaders. He was intrigued with politicians’ power and influence (Hollander & Offermann, 1990). To Burns, power was a positive term and had two components: resource and motive. Both components could be viewed by the leader and follower. For instance, a leader could utilize …show more content…
Additionally, he felt that transactional leadership was more common in organizations than transformational leadership (Judge, 2004). Tracing the origins of the charismatic leadership theory links the development of transactional leadership and transformational leadership together (Bono & Judge, 2004; de Vries, 2008). Zaleznik’s (1977) research similarly explored the differences between transactional and transformational styles. He found that leaders developed goals for their followers first by assessing the followers’ needs. Secondly, leaders determined feasible, realistic, and achievable goals (Zaleznik, 1977). Zaleznik’s study validated Burns’s (1978) belief that transactional leaders comprehend what their followers’ workplace needs are and strive to help them reach their goals if their performance is acceptable (Avolio & Bass, 2004). Bass’s (1985) research followed the same lines as Burns’s (1978), but it broadened the scope of charismatic characteristics of a leader in an attempt to refine the process of transactional and transformational leadership. Unlike Burns, Bass was convinced that these two leadership types should not reside on separate ends of the spectrum. Bass acknowledged they were two distinct models; however, he felt that superior leaders must exhibit behaviors associated with both transactional and …show more content…
Prior to assessment of the items, these students were briefed in detail on the concepts of transactional and transformational leadership. The students then sorted the 142 items into three categories that included transactional, transformational, and laissez-faire. An item was kept for further scrutiny if eight out of the 11 students acknowledged it as transformational and none of them acknowledged it as transactional. The same procedure was followed to determine if an item was acknowledged as transactional. Seventy-three passed the scrutiny test and were revised for a different questionnaire. Further research produced the original seven leadership factors: Charisma, Inspiration, Intellectual Stimulation, Individualized Consideration, Contingent Reward, Management-by-Exception, and Laissez-Faire. However, the original version of the Multifactor Leadership Questionnaire, or the MLQ Form 1, combined Charisma and Inspiration due to the high correlation of these factors. Bycio, Hackett, and Allen (1995) persuaded Bass to combine these factors, which resulted in a six-factor