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Leadership Theory
Compare and contrast two different leadership theories, including the positives and negatives of each theory. Provide an example of each referring to a current, well-publicized leader. Evaluate how power is used within these theories and by these leaders. Explain the role of ethics within these leadership theories and practiced by these leaders. Explain how these leaders can improve trust and communication. Locate and summarize two empirical research studies within the last five years with these leadership theories by discussing the following: sample, methodology, findings, and the noted gaps in literature.
Use of Power in the Theories and by Leaders
Power is the ability of one person to influence others to accomplish orders or achieve objectives (Source 2.1). The two theories rely on different bases of power, as defined by French and Raven's model:
Theory
Primary Power Bases Used
Example Leader (Jeff Bezos - Founder, Amazon)
Transformational
Personal Power (Referent and Expert Power). Referent power comes from admiration and personal liking; Expert power comes from special knowledge and job experience (Source 2.1).
Jeff Bezos (Former CEO, Amazon) historically leveraged Expert Power (deep technological and business knowledge) and Referent Power (through his singular vision of "customer obsession") to inspire employees to work toward ambitious, long-term goals and embrace organizational change.
Transactional
Position Power (Coercive, Reward, and Legitimate Power). Reward power is based on the ability to reward performance, while coercive power is the ability to punish (Source 2.1).
Jeff Bezos also utilized Reward Power through Amazon's intense performance review process and stock incentives for meeting aggressive targets. He also employed Coercive Power through demanding performance standards and a willingness to fire those who did not meet metrics.
⚖️ Role of Ethics
Ethics is a key concern, particularly for transformational leadership, which is deeply attached to the moral elevation of followers (Source 2.5).
Transformational Leadership: This style often overlaps with ethical leadership, sharing essentials like integrity, concern for others, and ethical decision-making (Source 2.4). The leader is a role model who should be perceived as sharing altruistic values, fostering trust (Source 2.5). However, a leader can practice pseudo-transformational leadership—using charisma and vision for selfish or unethical ends (Source 2.4).
Bezos's Ethics: While his vision is inspiring (transformational), the transactional emphasis on demanding efficiency, intense competition, and high turnover raises ethical concerns regarding employee well-being and management-by-metrics.
Transactional Leadership: This style is ethically neutral, as it depends on the fairness and transparency of the exchange. The ethical role is primarily one of procedural justice—ensuring that rewards and punishments are applied consistently and fairly according to the agreed-upon standards.
Improving Trust and Communication
To improve trust and communication, these leaders, particularly in a hybrid model like Bezos's, can:
Increase Individualized Consideration (Transformational): The leader must shift from purely metric-driven relationships to showing genuine concern for the individual needs and well-being of employees. This fosters trusting relationships (Source 3.5).
Ensure Consistency and Integrity (Ethical Leadership): Leaders must demonstrate consistency in their decisions and behaviors, which makes them appear dependable and trustworthy (Source 2.5). If the leader's rhetoric is about long-term vision, their transactional actions must not contradict it with short-term, punitive metrics.
Sample Answer
Transformational vs. Transactional Leadership
Transformational leadership and transactional leadership represent two well-studied leadership theories, often assessed using the Multifactor Leadership Questionnaire (MLQ) (Source 1.1).
Feature
Transformational Leadership
Transactional Leadership
Core Focus
Inspiring and motivating followers to transcend self-interest for the good of the organization (Source 1.1).
Based on "exchanges" or contracts, where followers are rewarded for meeting specific, predetermined goals (Source 1.1).
Motivation
Intrinsic motivation, creating vision, and instilling enthusiasm and trust (Source 1.1).
Extrinsic motivation, using rewards, positive reinforcement, and contingent punishments (Source 1.1).
Ideal Environment
Dynamic contexts, organizational change, innovation, and close supervisory relationships (Source 1.1, 4.2).
Stable environments, maintaining procedural compliance, and meeting specific targets (Source 1.1, 4.2).