A Comprehensive Analysis of Transactional and Transformational Theories

Introduction:

Leadership and management are two integral parts of an organisation, that are associated with productivity, efficiency and competence of the workforces. Leadership can be defined as the essential part of organisational management that drives entire workfares towards accomplishment of common organisational goals. Although both the management and leadership are two synonymous terms, there are some basic differences between them regarding their objectives, working process and impact on organisation. The essay is going to discuss two important leadership theories such as transactional and transformational theory, which will represent a clear concept of leadership styles in an organisation. in addition to that, the essay will also discuss the differences as well as similarities of leadership and management in an organisation with discussing their impact on the overall organisational performance. The essay will also discuss about leadership and management in an organisation with defining their activities, features, required skills and impact on the overall organisational performance. While using the transactional and transformational theory, the essay will use several evidences in term of representing a critical discussion on the two theories. Finally, the essay selects a leadership development program from the NHS Leadership Academy and evaluate the program with using proper theories and references. In this evaluation, the essay will analyse the importance as well as usefulness of the training and development process for organisations. additionally, it will also evaluate the limitation as well as drawbacks of the leadership program of NHS. Here the essay not only discuss the advantages and limitations of leadership program of NHS, but also discuss the areas of improvement as well as strategies that can be used by NHS in terms of enhancing the usefulness of the program. While discussing benefits and disadvantages of the leadership program the essay will also discuss the impact of the leadership program on individual as well as on the organisation. Finally, the essay will develop a conclusion, in which it makes an suitable inferences based on the above-mentioned discussion. . .

Discussing management and leadership theories:

Leadership and management are two important aspects in any organisational which are associated with the organisational productivity, workforce management, goals setting, making relevant organisational strategies and modernising the organisational policies and practices in terms of gabbing strong competitive advantages. as mentioned by Schutte and Barkhuizen (2016), management is the process of planning, controlling, directing and organising organisational resources in effective manner that assist entire workforce to develop their efficacy and productivity in terms of meeting common organisational gaols. A manager needs to have ability and skills to organise entire elements that are associated with success of that organisation such as human resources, technical resources, communication process, services, distribution channel, relationship between the manager and subordinate staff and relationship of organisation with its client, dealers and suppliers. On the contrary Ma and Seidl (2016), argued that, although management is associated with organisation planning and controlling the important elements as well as resources in an organisation, there are additional responsibilities are associated with management process such as influencing workforce and conducting risk assessment framework inn terms of dealing with any possible risk in the organisation. on the other hand, leadership can be considered as the crucial component of useful management style in an organisation (Schutte and Barkhuizen, 2016). Leaders are the individual who direct the entire workforce towards achieving common organisation goals by enhancing their professional skill, efficacy and self-confidence. Evidence based studied have stated that management leadership can be two sides of a coin that are interrelated with each other. As mentioned by Jumaa and Alleyne (2017), a manager must have the quality of leaders such as motivating staffs developing their inner strength and enhancing their ability to form relevant strategies in terms of dealing with organisational issues. sills that an organisational leader would possess are communication skill, inspire and motivation skill, analytical skill, quick decision-making skill, goals setting, negotiating skills, optimistic and positive nature. Although there is little difference in their required skills and abilities for the manager and the leaders. As mentioned by Schutte and Barkhuizen (2016), although the required skills and efficacies are more of less same for manager and leader, there is basic differences in the process of implementing as well and using these skills into practices to grab the success. Like leaders, managers also need to have some important skills such as interactive skill, interpersonal skill, communication skill, decision-making skill., judgemental skills, time management skill, abilities to plan and organise valuable resources, delegation and motivating skill. . .

While discussing the similarities between leadership and management, it needs to be stated that, although there are some differences on their working process and implementation styles into practices, the two terms are more or less similar in their common objective, the organisational development and success (Jumaa and Alleyne, 2017). Being an integral part of effective management styles in an organisation, the leadership is associated with not only directing staffs towards achievement of organisational goals, but also resources allocation in effective manner, which assist the organisation to distribute the organisational resources evenly so they can used in proper manner to grab maximum productivity. similarly, the effective management styles in an organisation plays important roles in planning and organisational resources in the workplace effectively so that staffs can use them in their work process to meet the common organisational goals. Vision of both management and leadership is same, enhancing organisational productivity and achieving the common organisational goals. As mentioned by Schutte and Barkhuizen (2016), both the organisation leaders and the managers work on setting proper strategies as well as vision in terms of achieving the common organisational goals. Another important similarity between the management and leadership in an organisation is their relationship with the workforces. Both the managers and leaders maintain strong connecting with staffs in terms of determining the strength and limitation of entire workforces which assist them to set such strategies that can be relevant to the ability of staffs in order to achieve organisational goals. As mentioned by Rutigliano et al. (2017), the both managers and leaders reside in ahead of the staffs and set proper ways forward. in terms of dealing with organisational issues there are similarities between the leadership and management process. A manager is always intended to develop effective commination with staffs as well as with the higher officials in terms of setting relevant risk management strategies which will assist the organisation to deal with the risk in the market such as changing market tend and customers demand. Similarly, an organisational leader plays important roles determining possible risks assaocietd with organisation and motivate the staffs as well as higher official to develop proper crisis management framework to deal with the issues. therefore, it can be stated that, leadership and management are two interconnected aspects on an organisation which are similar regarding some of their basic work process and objectives. .

As mentioned by Rutigliano et al. (2017), although there are many similarities between management and leadership in an organisation, the two terms differ with each other in many aspects such as their process of dealing with organisational resources and their objectives as well as visions towards organisational success. From many evidence-based studies, managers can be defined as reactive people, which react on the good or bad news and events in an organisation. in this context Cunningham et al. (2015) stated that managers are involved in setting strategies to deal with risk ad issues that already happened in the organisation, rather than predicting the risk and develop strategies to eliminate the chances of risks to be happened. On the contrary, leaders are reactive individual who predict and assume the possible risk that can be happened in an organisation and then develop proper crisis-management framework to make the organisation strong enough to discard the chances of occurring any type of risk. In this context, unlike the managers, leaders take challenges in the organisational and set proper planning as well as relevant strategies that assist the entire workforce to become enough efficient as well as professional to deal with the challenges. as mentioned by Kim et al. (2017), an organisation needs leaders rather than managers, as leaders have the courage in taking challenges in organisation that is important in todays business world to develop high level of competitive advantages in the international market. another important difference between the management and leadership is managers always delegates the responsibilities whereas the leaders eager to take responsibilities and job stress. Managers are the person who always involved in delegating authority ad power to the other officials, which sometimes makes them free from the risk and challenges associated with the responsibilities. In this context, managers have little involvement in dealing with the organisational risk and crisis. on the other hand, organisational leaders always ready to take responsibilities as well as challenges and develop innovative strategies in terms of dealing with the challenges. as stated by Malewska and Sajdak (2014), organisational leaders are involved in maintaining creativity and innovation in their work process which assist organisational to maintain sustainable growth in the competitive market. another important differences between the managers and the leaders, managers mange groups but leaders are involved in creating the highly efficient team. organisational leaders are involved in selecting the high skilled staffs from workforces and develop a team with high level of professional standard who can be relevant to meet common goals of the organisation. On the other hand, managers are associated only manging and controlling the team with determining their needs, issues, preferences and responsibilities. On the contrary Malewska and Sajdak (2014) argued that, sometimes managers are also involved in determining the strength as well as limitation of each staff in a workforce to create the effective and highly productive team in terms of enhancing productivity and competitive advantages of the organisation. however, evidence-based studies have shown that as managers are associated with many responsibilities other than team creation, they cannot put too much effort in developing productivity of the team. on the other hand, the leaders although are associated with developing goals for organisational and making proper risk assessment framework for the organisation the priority task of the organisational leaders is to develop high-skilled team by selecting the efficient staffs from the workforces and train them in useful manner to direct them towards accomplishment of the common organisational goals. Another important differences that are mentioned in most of the studies between management and leadership is leaders and are unique and inventors, whereas managers are follower of the pre-set strategies, principles and rules. In this context Ghaedi and Rad (2016) mentioned that, t managers in an organisational are involved in following complying with the rules and instruction that are already set and developed by the organisational leaders. On the other hand, organisational leaders are associated with inventing new work process, principles and strategies that will be relevant to current organisation situation in enhancing competence as well as competitive advantages of the organisation. . .

While it comes to make comprehensive discussion on the management and leadership, it is important to use two relevant leadership theory, in terms of making the discussion understandable and clear. The two relevant model that can be used in this context are Transactional theory and Transformational theory. Transactional Leadership Theory is first developed by Max Weber. As its name defines, the transactional leadership styles is based on the exchanges and transaction. This leadership styles is based on the subordinate supervision, performance management and organisation of common goals in the workplace. Transactional theory priorities the rewards and punishment process in terms of motivating staffs. as mentioned by Olson and Simerson (2015), this leadership style is associated with the concept that in terms of attaining the high skilled workforces the managers need to develop give and take policy, in which the they can improve the output from the workforce in exchange of giving them some beneficial rewards. In this theory, the managers use rewards, such as financial rewards including remuneration hike, incentives and bonus, social rewards including providing better housing and sanitation. On the contrary Ghaedi and Rad (2016) argued that although tractional leadership is associet6d with motivating staffs by providing them with proper rewards, it can develop high level of conflict and opinion mismatches in et workplace in terms of giving the staffs punishment while they are unable to meet the targets. In addition to this, transactional leadership process is out of favour in today’s business world in which organisatio0nal leaders and managers need to focus on setting short and long terms goals and developed creative team rather than focusing the organisational structure and organisational system. as mentioned by Aarons et al. (2014), transactional leadership although is associated with assisting leaders and managers to get highly motivated team with providing them contingency rewards, this leadership process sometimes lacks transparency and practicality. In most of the cases it is seen that staffs who are enlisted fir bonus and financial rewards are selected by the personal preferences of the managers rather than selected based on their performances and skills. on the other hand, the transactional leadership styles is not practical for all types of organisations. For example, in case of small organisations the transactional leadership styles is not appropriate as the owner of small firms cannot afford rewards every month due to little investment in the company.

In this context, another important leadership styles that can be discussed is Transformational leadership Theory. Transformational leadership assist organisational leaders to work with teams in determining their strength, weakness and changing needs. transformational leadership involves in creating clear vision for workforces and inspire them for making relevant modifications as well as changes in their professional and personal skills to meet common organisational goals (Malewska and Sajdak, 2014). Unlike the transactional leadership style that prioritise rewards process in motivating workforces, transformational leadership style in more practical and relevant to currently business situation, in which organisational leaders focus on making innovating changes in work process, professional skills of workforces and organisational policies in terms of grabbing high level of competitive advantages. as mentioned by Ghaedi and Rad (2016), transformational leadership allows organisational leaders to align all staffs in entire workforces to task by improving, managing and enhancing the standard of their performance. Transformational leaders are associated with enhancing performance, motivation and morale of the organisational staffs by using different mechanism that are relevant to the needs and development of the workforces as well as entire organisation. transformational leaders are associated with developing innovating work process and organisational framework that inspires the workforce to participation into decision-making and plan setting for the organisation by using innovative and creative thoughts (). Unlike the transactional leaders, the Transformational leaders are ready take any challenges in the organisation which not only allow marketers to explore opportunities and limitations in new market but also assist managers to determine the possible risk that organisational can confront in the near future. on the contrary Cunningham et al. (2015) argued that, although transformational leadership assist organisational marketers to grab high level competitive advantages by taking small risk in market, it is not relevant for small-investment companies, in which marketers need to focus on setting such strategies that can avoid risk to avoid the unnecessary expenditure of the company. however, there are many evidences-based studies that stated that, transformational leadership is useful not only for large corporate sector, but also for the small and medium companies. in this context Malewska and Sajdak (2014) mentioned that, in case of small investment companies’ affirmational leaders are needed wo can involve the entire workforces in setting and developing effective strategies to meet the common organisational gaols. In addition to this, unlike the transactional leaders, transformational leaders will assist the staffs in et small investment company to make proper modification in their professional and personal skills which are needed in assisting the company to cope up with the ever-changing market trend as well as the changing customer’s demand.

From the above-mentioned discussion, it can be stated that, both management and leadership are two important aspects in an organisational which are interconnected with each other in such a manner that drives the organisational towards enhancing its productivity and competitive advantages. through using transformational and transactional theories in this essay, it can be discussed how organisation leaders can differ from the organisational managers in terms of their work process, values and decisions. In addition to this, the two leadership theories also how that choosing relevant as well as suitable leadership styles is how much important for the entire organisation in terms of not only developing its productivity but also assisting organisation to grab high level of competitive advantage’s.

Evaluating leadership development program:

Leadership training and development is associated with developing skills, enhance et performance standard and modifying thoughts as well as perception of people in terms of assisting them to be a good leader in an organisation. as mentioned by Ghaedi and Rad (2016), perfect leadership training and development program is important for organisational people to determine their strength and weakness that assist them to take effective strategies in improving skills and abilities that are required to be a great leader in organisation. during the leadership training, mentors se goals for the future leaders which they have to follow to develop their professional and personal skills. in addition to this, mentor conduct the self-assessment program for future leaders in terms of determining the areas of improvement, that are important for developing their professional standard and efficiency in dealing with each task. In addition to this the training assist future leaders to understand how to deal with organisational risk and what are the strategies that the organisational leaders need to take in developing proper crisis management framework in organisation to deal with these issues or risk in effective manner. as stated by Aarons et al. (2014), through attending the leadership training and development program, the future leaders can understand the responsibilities, features and qualities associated with this designation. In addition to this, the training and development process nit only assist the individual to grab proper knowledge on characters, skills and abilities that are important to eb a good leader, but also it makes individual to develop daring attitude in the individual in terms of assisting them to take challenges in future workplace to enhance market opportunities as well as competitive advantages for the organisation. ,

While in comes to select one of the leadership developments programs, this essay has selected the one of the famous leaderships and development programme run by the NHS Leadership Academy, ‘Edward Jenner Programme. This programme is proved to be the first option of people if they need to develop strong leadership skills that will assist them to enhance their professional efficacy and competence towards achieving task. as mentioned by Mazutis and Zintel (2015), leadership and development program are associated with enhancing the quality as well as professional efficiencies thar are required by an organisational leader. This programme is designed for people who work in the healthcare context. by evaluating the advantages of this programmes, it can b stated ta this programme is highly effective for health and care staffs in terms of developing the leadership skills to provide better care and support to patients and developing professional standard of their colleagues and other people working with them to build highly skilled workforces. The programmes is also effective in developing skills in healthcare staffs and healthcare mangers which assist them to lead healthcare services in better manner which will improve overall standard as well as quality of care. The Edwards Jenner Programme is highly practical as well as patients focused which makes high skilled and professional leaders in the healthcare context which not only improve the overall service delivery process in th healthcare field, but also deal with an organisational issues or crisis by using effectives as well as relevant strategies. the programmes will assist leaders to get clear knowledge on betterment of eth care process and maintaining sustainability of the quality if care. this leadership programmes can be accessed by anyone through using online platform. By undertaking membership of the NHS leadership academy, people can easily connect to several patients, clients and services users in health care context, which improves their practical knowledge on maintaining professional standard and quality of care in the healthcare field. This NHS leadership programme, has highly skilled mentors and coaches who assist leaders, staffs and patients to determine their limitations as well as strength which assists them to set relevant strategies in terms of developing proper management and leadership skills. on the contrary Ma and Seidl (2016) argued that, sometimes the leadership training and development process are not sufficient for people to develop proper leadership behaviour and skill in them , rather people needs to develop abilities ion implementing the skills into practical filed which assist them to determine what are t areas of improvement in which they need to work. the NHS leadership programme is not only associated with providing the professional training and conducting lectures on leadership and management styles, rather the programme is also associated with maki n face to face discussion with each student in terms of advising them about better implementation of the leadership skills in professional fields in terms of examining their ability as a good leaders. In this context Schutte and Barkhuizen (2016) argued that, the effective ;leadership program in no only associated with assisting leaders to nurture their skills and abilities that are required to be a good leader, but also the programme will assist the leaders to understand the different types of leadership in the organisational and roles od each type of leaders in the organisational progress. NHS leadership programme is effective in terms of developing transformational leadership skills in people attending the programme, which assists them to align all the staffs and manages to the task in terms of achieving the common organisational goals (Jumaa and Alleyne, 2017). By analysing the purpose of transformational leadership styles it can be stated that, the NHS leadership programme has selected transformational leadership for the people who are undertaking the training program, because transformational leadership skills will assist the leaders to introduce innovative thoughts and creative decision in leadership process to drives the workforces towards achieving the common organisational goals.

While evaluating the NHS leadership programme, it needs to be stated that what are the, limitations and flaws of this program. Here the program although is associated with providing support to marge number of leaders and people associated with NHS services in terms of developing their leadership and management skills, the programs itself suffer from the mismatches of opinions and conflicts of coaches and mentors working here. As mentioned by Rutigliano et al. (2017), in terms of conducting effective leadership program it is important for mentors to provide proper time and effort for each trainee for determining their needs. many patients, NHS staffs and managers are reported to have poor experiences with this NHS leadership program as they would not be provided with proper attention and care by the mentors on individual basis to determine their issues and leadership needs (Rutigliano et al. 2017). in addition to this, although the NHS program provides large number of academic resources to the trainee regarding developing their leadership skills such as books, online lectures,, magazines, current articles on leadership and online pdf on leadership management styles, the program sometimes is unable to cover all the people associated with NHS such as patients, healthcare staffs, health professional and managers who actually need to attend the leadership training program for enhancing their efficacy and leadership skills (Kim et al. 2017). Finally, sometimes, the NHS leadership academy is sometimes reported to have some kind of partialities and preferences in terms of conducting training and development programme for the trainee, in which patients suffering from disabilities and poor leadership skills are merely provided with proper times and efforts by the mentors to determine their issues and required skills. from et overall discussion it can be stated that although there are many advantages associated with leadership program of NHS academy, there are some limitation associated with this program that the NHS need to overcome by setting proper strategy, so that all trainee would get similar opportunities as well as benefits. ,

Conclusion:

From the above-mentioned discussion it can be stated that, leadership and management are two important aspects of an organisation, that impact on the organisational productivity and progress. Through developing proper leadership and management styles in an organisational, the leaders and managers are able to improve the overall organisational framework and enhance the competitive advantages of the company in international market. there are many similarities and differences between leaders and managers in an organisational which needed to be determined by the organisational itself in terms of implementing the appropriate leadership and management styles in the organisation. finally, the essay also concludes that, the leadership development program conducted by NHS Leadership Academy is highly effective in developing leadership skills in proper undertaking training here. The NHS leadership program although reported to have some limitation, successfully creates great leaders in healthcare who improve the overall standard and quality of entire care process in NHS.

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