Warren Bennis, an American scholar and organizational consultant, once said, “The manager accepts the status quo; the leader challenges it.” Several months after starting a new sales job with a marketing communications agency, I knew I was working with a manager and not a leader. A transactional leader develops from a type of exchange relationship in order to meet certain needs, but a transformational leader attempts to change the status quo through strong values and a sense of higher purpose (Northouse, 2016). When things were not going well and change was not an option, I had a feeling I hit a dead end.
Transformational leaders are more adept at driving organizational change and getting results than transactional leaders (Hughes, Ginnett, & Curphy, 2012 as cited by Northouse, 2016). According to Lewin (1951), there are four phases of organizational change: diagnosing the problem, unfreezing current commitments, implementing new changes (movement), and institutionalizing the new changes (refreezing) (Muchinsky & Culbertson, 2016). The organization was not doing well; the previous salesperson had not made a single sale in the eight months that he worked there, so I had entered this new position with the mindset that new changes were necessary for an effective sales strategy. At the end of one of our sales meetings, I brought some new ideas to the table, and I was instantly shut down and berated. I was told by my manager, “I have been doing this for 20 years; you should trust that I know what I’m doing.” The problem had been diagnosed, but my manager was unwilling to unfreeze his current commitments to implement new changes. So change did not happen, nor did the results.
Without change, there is no progress. Transactional leaders “exchange things of value with subordinates to advance their own and followers’ agendas” and to preserve the status quo (Kuhnert, 1994, as cited by Northouse, 2016). I thought that my manager, who is also my uncle, had given me this position because he trusted my previous sales expertise, but I believe he was really looking for someone to build a leads database and make cold calls. In return, he paid me generously for it, but in the end the work environment became too hostile to bear. He was just looking for someone to follow his command, and there was no wiggle room for change. At first, I found his charisma empowering; he was dominant, had a strong desire to influence others, and a high level of self-confidence, which are all characteristics of charismatic leaders (Northouse, 2016). But transformational leaders are positive charismatic leaders, and not all charismatic leaders are transformational.
An inability to be sensitive to emotional states and pick up on social cues leaves the transactional leader several steps behind the transformational leader. My manager was the archetype of emotionally unintelligent; he was unaware of the effect that his negative emotionality had on others, and he took out his anger on his employees. Northouse (2016) explains how “transformational leadership requires that leaders be aware of how their own behavior relates to the needs of their followers” (p. 180). Personally, I needed to be a part of a positive work environment to be productive and motivated, and my manager’s behaviors created this tension that lingered throughout the office. I couldn’t focus on simple tasks because all I would be able to think about is the last time he was short with me, or made me or another employee feel incompetent.
Transformational leaders take the lead over transactional leaders because they drive organizational change, use their charisma in a positive manner, and understand the needs of their followers. I had to leave the organization because even the financial incentives could not offset working under a transactional leader. As the world changes and the status quo evolves, transactional leaders will be left in the dust.
References:
Muchinsky, P.M. & Culbertson, S.S. (2016). Psychology applied to work: An introduction to industrial and organizational psychology. Summerfield, NC: Hypergraphic Press.
Northouse, P.G. (2016). Leadership: Theory and Practice. Los Angeles, CA: Sage Publications.
Christine R Campbell says
The transactional leader also does not foster “Team Leadership” (Pennsylvania State University, 2018, p. 6). Team leadership is about engaging leaders and employees around you so that they clearly understand the goals and are results driven (Pennsylvania State University, 2018, p. 6). Also, the members of the team develop trust with the leader and feel that each member of the team is very capable of producing results that will help the team meet their goals (Pennsylvania State University, 2018, p. 6). In addition, the team develops “a sense of identification with one another” and the environment is a “collaborative” one. The team holds each other accountable and helps each other by providing constructive feedback that helps coach and develop each other (Pennsylvania State University, 2018, p. 6). It sounds like the leader in your example lacked the relational skills that are needed and provided by Team Leadership.
Pennsylvania State University. (2018). Lesson 9: Team leadership. PSYCH 485: Leadership in work settings. Retrieved from https://psu.instructure.com/courses/1925331/modules/items/23786592