TRANSACTIONAL VS.

TRANSFORMATIONAL LEADERSHIP Lesson #6

Transactional leadership An approach that inquire the interactions between leaders and followers by legal agreement or contract and having no concern with employees or managers beyond contract. This approach assumes that work is done only because it is rewarded, and for no other reason, and it therefore focuses on designing tasks and reward structures. While it may not be the most appealing leadership strategy in terms of building relationships and developing a long-term motivating work environment, it does work, and it's used in most organizations on a weakly and monthly basis to get things done. or This person is interested in looking out for oneself, having exchange benefits with their subordinates and clarifies a sense of duty with rewards and punishments to reach goals.
Transformational

Transformational leadership is a type of leadership style that leads to positive changes in those who follow. Transformational leaders are generally energetic, enthusiastic and passionate. Not only are these leaders concerned and involved in the process; they are also focused on helping every member of the group succeed as well.
Effective organizations are those where leadership is inspirational, role model, learning & grooming of followers. Western is more transactional.For example viz. role of teacher should he be clear by his legal contract and a role which is just limited to class room or he is considered an overall role model, inspiring leadership and ethical values. Continuous or First - order change Two frameworks in which change can occur; continuous or first order change in which the system remains un changed but the policies and rule regulation of the company changed. These changes and variations are necessary for business to grow and boom in a competitive environment. Evolution theories describe the first-order changes that industries

Experience. Natural selection mechanism views the entry and exit of firms in an industry as the primary method of evolution. (Changes within particular stage of organizational life cycle) In other words this refers to gradual changes in organization such as refining existing processes and procedures. Discontinuous or second-order change Change that occurs when fundamental properties or system itself has changed, for example, the fall of communism in Europe and former Soviet Union. Or revolutionary changes in technology, competition, socio-economic conditions like in telecommunication, banking, healthcare, and electronics are considered discontinuous change as it leads restructure these industries, relocate industries and change the bases of competition. Change of stage on organizational life cycle is a discontinuous one. Quantum change is perceived better to make organizations High Performing Organization (HPO) Micro-changes Another practical classification is because of to the difference in degrees e.g. modifications, improvements, enhancements & upgrades Mega-changes These refer to the differences in kind a structural one, for example when we refer to a new system. Human Capital Human capital refers to the full range of knowledge, skills & abilities an individual can use to produce a given set of outcomes. Practically at upper rank manager are able to scan internal/external environment, solve problem, seize opportunities, etc. Firm-specific human capital means knowledge of ones own operation, strengths, weaknesses, tacit knowledge, operational personnel and communication styles etc. General human capital deals with knowledge of and about larger environment, competitors, suppliers, customers, stake holders, and about dealing with human capital.

Social capital learning essentially a social phenomenon? It refers to the linkages between social actors, the strengths of those linkage, and resources that flow from them (networking). The key dimensions include structural (relationship pattern among actors), relational (trust, norms, obligations, ethics that thru the relationship flow), and cognitive (shared beliefs and languages). Linkage between upper echelon and Board of Directors (BOD) in the form of information, advice, trust, and other organization processes like problem-solving, decision-making, coordinating. A very thought provoking( to cause a particular reaction) and interesting question would be what if organization has human capital minus social capital, and vice-versa? Four types of organizational change 1. Power culture Following are the attributes of power culture. In such organizations individual is told what to do ,power is exercised by leaders about changing behavior, extraneous pressures to perform role and extrinsic( not belonging naturally) motivation results are focused. 2. Role culture Where individual acts within the limits of job-description. For example stenographers in public sector refuse to learn or do the job such as fax or e-mail as per his job-description (narrower interpretation of a job). 3. Task/ achievement culture Individual acts in a suitable way to complete tasks. People are motivated intrinsically (autonomy and sense of satisfaction. 4. Person/Support culture: Individual uses own initiative.

Organisation Development OD is a system wide process of data collection, diagnosis, action planning, intervention, and evaluation aimed at:

1. Enhancing congruence between organization structure, process, strategy people and culture; 2. Developing new and creative organizational solutions; 3. Developing the organization's self-renewal capacity The difference between OD and change management is difficult to delineate as it is overlapping but OD context essentially deals with internal aspects of organization while change management tends to be broader in its scope and concerns with both internal and external aspects of organization. Organizational meme Definition: Any of the core elements of organizational culture, like basic assumptions, norms, standards, and symbolic systems that can be transferred by imitation from one human mind to the next. In simpler words it is the replicating or copying behavior. It is very fundamental way of learning borrowed from child psychology. Individual learns from other by following him as a role model. Fors example students getting admissions in any one popular subject or profession at any given time; be it medical, engineering, information technology, just because of imitating behavior. This is also known as band wagon effect or mass movement. In consumer behavior the same thing known as life style or fashion. Bench marking at organizational level represents mimicry especially when one organization (industry leader) does something new and all tend to follow the same. Even states follow other states in terms of economic and development policies considered successful such as export promotion, FDI, trade-liberalization, nationalization, import-substitution policy, or entrepreneurship promotion etc. Scholars have different opinions in advocating the efficacy of mimetic process as some believe in favor and for others the process could be imperfect in transferring knowledge, and hence lead to genetic distortion. Prepared by Shams ur Rahman PhD en roll in Bahria university Islam abad Cell no 0333 9477513 E-mail: shamspir2000@yahoo.com