With the profit as a motive, organizations of today want their teams to put the best effort always. Companies engage their unit heads and empower them to negotiate winning strategies, rewarding processes and incentivized schemes for corporate success. Soon the leadership qualities were transactional or transformational etc. The transactional leadership believes in motivating the employees with a reward or incentive in mind. Since employees put in a lot of efforts, always looked forward to either recognition in the work done or to be rewarded monetarily or both. The need then arose for leaders to manage teams with whom they could negotiate and assure results to the management. Similarly, the employees expected the leaders to deliver the promises that were made before carrying out tasks and assignments, once the work got done successfully.
The transformational leaders motivate their teams by gaining their confidence and motivating them to think big, play a responsible role and subtly making the teams realize that they would be considered for higher responsibilities based on their performances. For such an effect to take place the companies must rely on the competent, knowledgeable and skilled workforce who will also need to rise to the challenge. The transformational leaders sometimes are better in giving a stronger and better result to the organization which helps in the long run compared to transactional leaders who deliver some impact for and in a short duration.
Even where companies established branches worldwide while respecting local cultures ensured the corporate ethos and culture were as in the parent company. The role of the Human Resources department became more important in getting such profile personnel for various jobs.
In the past 100 years, companies that have changed and grown successfully would have had its output well accepted by the customers. While the forces of competition will make the company commit its resources for staying ahead. While Laissez faire leadership and transactional leadership has its own advantages the one preferred by growing companies are the transformational leadership style. The top leaders in the company know it that the strength of the company lies in the collective knowledge, skills, attitude, and morale of the company. Junior executive while promoted to the next level annually in an evaluated and reviewed process will also get new strategies in place for its manufacturing activities apart from various other divisions in the company. If one has seen the dependency of humans in the control and working of machines, we will know by now the merits of IT usage and how a company works on programs and ERPs. Top leaders in a company could be either an empowered team or just a simple team. Where the power, authority, and responsibility are bestowed in the top management team it is found that in case of non- owner-managed companies – the leaders exhibit a reluctant mode of handing over power and authority to the junior levels. The transformational leadership pattern is less pronounced as compared to the companies in MNCs and public sector including some in the private sector where the ownership of the company is bestowed on a team.
