We investigate the effect of transactional and transformational leadership on followers and how each motivate individuals to commit to the enterprise goals and objectives. This report gives insight into the difference between transformational and transactional leadership drawing from case study evidence. The report concludes that although their core concepts are different, they share similar aspects and are most effective when used the right circumstances and context.
Leadership is perhaps the most important factor of success in an enterprise. It plays an essential role in contributing to the wellbeing and success of organisations (Odumeru & Ifeanyi, 2013). Organisations such as Qantas had been turned around from difficult and complex situations through the effective leadership of Alan Joyce. This is because the leaders of an enterprise are the individuals who make the changes happen.
Two of the most prevalent leadership theories are Transformational and Transactional leadership styles. These two leadership styles both affect followers by motivating them to committing them to enterprise goals (Deichmann & Stam, 2015). Leaders are the ones that …show more content…
However, he demonstrates the effectiveness of the transactional leadership style during the Qantas airline grounding. In 2011, due to a dispute over pay, outsourcing of jobs to other countries, and conditions, Joyce announced that the entire airline would be grounded. This decision affecting more than 68,000 passengers, and around $68 million (Collins et al, 2015). The grounding meant locking out staff, however Joyce stated it was a necessity in order to resolve the dispute, this event not only affected the staff but also the stakeholders, Australian government, and economy. While this decision was unprecedented and acquired criticism from all parties, the dispute was then resolved and all operations