Transactional Leadership Paper

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The Transactional Leader/Follower Exchange Low-level managers are usually transactional leaders that operate the business entity (Kotter, 2013). They are the face of the business and execute the operational aspects of the organization on a day to day basis by following the strategic business plan for success which includes enforcing rules and policies and meeting goals and objectives devised by executives (Bisel, Messersmith, & Kelley, 2012; Kotter, 2013). Transactional leadership is grounded in processes (Hoyt, & Blascovich, 2003; Ruggieri, 2009; Northouse, 2012). Process driven transactional leaders reward followers based on how well they execute processes or obey rules, adhere to policies and achieve individual and collective …show more content…
Tri-American employed a decentralized organizational structure that increased operational autonomy and empowered the workforce. Tri-American’s organizational culture of increased operational freedom should have facilitated innovative solutions to inter-organizational challenges by sharing knowledge in a collegial effort and refining the manufacturing processes to increase efficiency. Instead, Tri-American’s organizational culture, organizational climate and lack of strategic leadership and human resources management represents a systemic problem that created a barrier to the management of change and organizational learning at Tri-American branch locations (Vera, & Crossan, 2004; Atkinson, 2005; Schimmel, & Muntslag, 2009; Drucker, 2011). Dick Spenser’s failure to implement change and innovation as a plant manager is a direct result of Tri-American’s lack of top down strategic leadership and human resources management as well as Spenser’s deficit of transformational leader behaviors (Vera, & Crossan, 2004; Huang, Hsu, & Chiau, 2011). Tri-American did not employ a formal employee recognition and secession training program. This would suggest that Tri-American is not an adaptive and resilient organization poised to retain …show more content…
Tri-American’s lack of strategic leadership permitted autonomous branch operation to stifle true innovation, prevent organizational learning and prevented leaders from being able to effectively managing change (Vera, & Crossan, 2004; Schimmel, & Muntslag, 2009). Moreover, Tri-American lacked a multilevel strategic training program to develop the full-range of transformational leader traits and behaviors (Vera, & Crossan, 2004; Bisel, Messersmith, & Kelley, 2012). Judge and Bono (2000) state that transformational leaders were more effective than their transactional leader counterparts (Huang, Hsu, & Chiau, 2011; Bisel, Messersmith, & Kelley, 2012). The followers of transformational leaders exhibited more positive organizational citizenship behaviors, were more satisfied, motivated and more willing to accept change than the followers of transactional leaders (Vera, & Crossan, 2004; Atkinson, 2005; Huang, Hsu, & Chiau, 2011; Bisel, Messersmith, & Kelley, 2012). Organizations with leaders that are capable of exercising the full-range of transformational leader behaviors are conducive to organizational learning and the maintenance of work/life balance (Hsin-Kuang, Chun-Hsiung, & Dorjgotov, 2012). As a result, transformational leadership increases

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