CONTEMPORARY THEORIES To overcome the limitations of traditional leadership

Most current approaches of leadership in organisations are

☺ Transactional leadership

☺ Transformational leadership

Transactional leadership Transactional leader are leaders who exchange tangible rewards for the work and loyalty of followers.

Ohio state studies, fielders model, path goal theory- transactional in nature

CHARACTERISTICS:1. CONTINGENT REWARD2. MANAGEMENT BY EXCEPTION3. LAISSEZ FAIRE

Transformational leadership

Transformational leaders are leaders who engage with followers, focus on higher order intrinsic needs, and raise consciousness about the significance of specific outcomes and new ways in which those outcomes might be achieved.

Characteristics :

1. Charisma

2. Inspiration

3. Individualised consideration

Difference between Transactional leadership

Leadership is responsive. Works within the organizational

culture. Employees achieve objectives

through rewards and punishments set by leader.

Motivates followers by appealing to their own self-interest.

Transformational leadership

Leadership is proactive. Works to change the organizational

culture. Employees achieve objectives

through higher ideals &moral values. Motivates followers by encouraging

them to put group interests first.