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Compare and contrast transactional and transformational leadership 


Assess the 2 leaders and determine whether they are transactional or transformational. Provide examples of behaviours, actions, situations as evidence.

Using one of the organisations you have selected: In regard to the change that it has recently undergone or is currently undergoing, discuss and explain how transformational leadership can be applied to manage this change effectively.

Using one of the organisations you have selected: In regard to the change that it has recently or is currently undergoing, discuss and exundergone plain how transactional leadership can be applied e effectively. to manage this chang  

Compare and contrast incremental and radical change in an organisation. 


Assess the change in each of the selected organisations and determine whether this is incremental or radical. Provide specific examples as evidence. 


Using one of the organisations you have selected: 


Discuss and explain how the selected leader can determine and manage the impact of change on the individual level, especially as an incremental change for one individual could be a radical change for another. Provide specific examples. 


Can radical change be implemented gradually?

Explain your answer using a specific example. 

Using one of the organisations you have selected: 


Identify and discuss 3 possible barriers that the selected leader will face (or has faced) in implementing the above change. 


Discuss and explain 3 effective strategies that the selected leader can employ (or has employed) to overcome the barriers identified above.

Introduction of Leader and role in the organization

The report is regarding the implication of leadership and management of changes in the organization. Leadership form to be an important part in gaining significant growth. By assessing the leadership style of an individual it is easy to understand the growth structure and development skills.  In case of gaining market competencies it is evident to manage the leadership behavior to develop an organization in an effective way. The report distinguishes in Between leadership style of Elon Musk and Bill Gates.

Leadership act differently around the world in a different way.  People around the world act differently depending upon the circumstances. It is related to community leadership, religious leadership, political leadership, and leadership in a corporation. Elon musk is a transformational leader known across the world as the founder, CEO, and CTO of SpaceX; a co-founder, and product architect of Tesla Inc. As a transformational leader, Musk has confirmed the goals of Solar City, Tesla, and SpaceX as his vision to alter the world and civilization. Musk has a vision to reduce pollution by the way of sustainable energy through innovation.

Bill Gates is a transactional leader creating futuristic goals and follows the organizational goals. Gates is at the positions of chairman, CEO and chief software architect. He is known as one of the best-known entrepreneurs of the personal computer uprising. In market Bill Gates is been criticized for his business tactics due to anti-competitive policies.

Elon Musk is a hard working businessman, designer, engineer, investor, and multibillionaire. As a change management element, Musk badly needs the automakers to get heavily involved in electrics. Musk has introduced significant changes in the market. For gaining market competencies it is evident to incorporate sustainable change. Elon Musk is a bearer of change and innovation. He has recently managed to form alternate energy supply through innovative management. The hydrogen fuel cell is showing some serious promise to the future generation. This has helped them in engaging in a systematic change management process.

Musk’s contempt for the franchise system with his superiority will seems to be promising on a long run. With the introduction of an effective change management process, the A cheap battery in homes will let the smart grid with utilities to draw power as required to gain utility’s load. This will diminish the requirement for standby power generation and permit charging car batteries speedily without thorning the power drawn from the utility (Bamberger, Biron & Meshoulam, 2014).

Elon Musk is a change maker and believes in transformation. It is his sheer dedication that allow in managing the changes taking place in the surroundings. As a change maker, Elon Musk has incorporated significant changes by improvising the situation. It is due to their consistent efforts that the organization is outperforming with a high efficiency. He understands the necessity to incorporate changes in the organization through effective transformations. His clarity towards the futuristic approach helps in managing the tasks in a well an effective way. This is promising for the organization to turn the opportunities in an effective way by handling the changes (Armstrong & Taylor, 2014).

Organizational Change

Bill Gates as a change manager has a clear approach in dealing with the situation.  He is the pioneer of carrying out the Work by introducing significant changes in business model. As a transactional leader, he visit new product teams and ask complicated questions until he is satisfied. Microsoft is bringing in advanced changes in the system by been the pioneer in the system. This situation has altogether helped in managing the critical issues taking place at the first hand level (Boxall & Purcell, 2011).

Transactional VS Transformational leadership 

Comparison of transactional and transformational leadership 

Transactional leader is the one who encourage observance with obtainable organizational objectives and performance prospect. He supervises the organization in an effective way through rewards and punishments. The Transactional leaders are task oriented focused on gaining maximum outcome. They take effective measures beneath severe time and resource. They believe in getting work done under the restraint and in highly-specified projects. This approach sticks to the status quo and helps in forming an effective management role that pays close concentration to how employees perform (Bratton & Gold, 2012)

Transformational leadership however focuses on employee motivation and engagement. The purpose of leaders is to link employees’ sense of self with organizational values.  They lead the organization by setting an instance, so followers can identify with the leader’s vision and values.  One need to understand the ongoing changes taking place in the transformational approach focused on individual strengths and weaknesses.  The leader believes in obtaining maximum outcome by enhancing their ability and their promise to organizational goals (Collings & Mellahi, 2009).

Both the Transactional and transformational leadership display five key differences:

  • A Transactional leader react to troubles as they arrive, while the transformational leader speak regarding the matter before they become challenging.
  • Transactional leaders work within the organizational frame by allowing changes in a well-defined way. A transformational leader highlights new ideas that are reflected in the organizational policies.
  • A Transactional leader punish the employees as per the organizational standards; whereas the transformational leaders attempt to attain positive results from employees by investing in projects and by high-order reward system(Hamel, 2008).
  • Transactional leader focus on self-interest of employees by the process of rewarding themselves, whereas a transformational leader, appeal to group interests and serve for the organization on a regular basis (Dowling, 2008).
  • Transactional leadership is similar to the ordinary ideas of management, whereas transformational leadership sticks to what is colloquially referred to as leadership (Dessler, 2009).

Bill Gates is a transactional leader who focuses primarily on organizational growth through traditional means. Microsoft focuses on achievement than comfort, comfort and stability of the staff. Like when Bill Gates realized that Paul Allen’s (Microsoft Cofounder) involvement towards a startup company (Microsoft) was not enough, he sidelined Allen from the company (Harzing & Pinnington, 2010).

There are speculations that Microsoft is not an inventive company. Bill Gates transformed obtainable products to please markets wants in place of creating new products. Microsoft is not the market leader, but a standards supplier for the industry.  Gates is competitive in nature and can go to any degree to beat his competitor. As an violent businessman, Gates has been facing legal issues since its incorporation. Most of the large technology companies are legally against Microsoft.

The transactional leader is engaged in adaptive communication. He is rude, harsh, and unconcerned of others’ ideas.  He doesn’t like any other person interference in the decision making. The employees are not involved well in the decision making. This creates barrier for the organization on a long run.  He is actively selecting committed, hard-working individuals at the initial stages of Microsoft. Bill Gates is a task master and behaves strongly by attributing different personality traits.

Transactional leader is focused on his job and depicts sincerity in work. Bill Gates has confirmed thirty years of experience through clarity of thought and execution dissimilar to the contemporaries. Bill Gates is smart, competitive and persistent with his approach. He is persistently focused on gaining competitive advantage through a goal oriented app

Part A

Behavior:  Bill Gates is at times bossy with an arrogant approach. He believes in getting work done by the subordinates through a systematic process. As a business leader is a pioneer of change and force competition in the organization. He has a clear approach where he focuses on managing the organizational goals through appropriateness. The purpose of the leadership is to frame the organizational goals by dedicating oneself to the organization (Hendry, 2012).

Action: He believes in taking advances through competitive advantage. He has a clear approach but follows the old process of operating an organization. On a long run, the organization is managing the situation in an appropriate way by organizing the goals in the best appropriate way. The focus is to enable changes in the organization and to manage the organizational motive. As a leader he has a diversified approach in managing organizational objectives. It is through his broad vision that Microsoft is able to manage changes. In a well-coordinated environment it is important to manage the organizational objectives (Price, 2007). By focusing on the individual employee and his behavior, Bill Gates motivates them to work efficiently. As a transactional leader, he visit new product teams and ask complicated questions until he is satisfied.

Situation Evidence:  As a leader, Bill Gates is a task master. He is strict with his approach regarding organizational goals. He has a clear approach towards organizational goals. He believes in the conventional way of business and uses a distinctive approach regarding managing the organization. Like when Bill Gates realized that Paul Allen’s (Microsoft Cofounder) involvement towards a startup company (Microsoft) was not enough, he sidelined Allen from the company. He believes in investing in only productive activities. This instance depicts his materialistic nature. He invests in only those activities that help in managing the business organization. The reason behind the success of an organization resides in effectiveness of work. He only believes in result and focus on gaining a typical organizational insight (Pynes, 2008).

The transactional leadership style is used as an effective way of creating organizational structures that obviously define job role. Bill gates has clearly defined job requirements, establishes rewards, payment or bonuses. The effective leadership style allow in managing the situation in the most critical way. Transactional leadership means that if the employees are working as per the contract, he is been paid all the benefits.  In case if they do not comply with the norms, as certain amount is deducted from his salary as a punishment. An individual receives the salary and benefits as agreed in return the leader supervise the employee’s actions and evaluate his performance. Bill Gates as a transactional leaders allocate resources to a task in a highly responsible way. He praises employees only for gain beyond expectations, not just meeting those (Schuler &Jackson, 2008).

While managing the organization, it is evident for the employees to use skills and knowledge to complete the mission.  In case if the employees do not perform well, they are punished. The leader only praises the work when an individual works above expectations.  Gates has an authority to punish the employees if the job is not done in a standardized way. The implication of the transactional leadership style is implied when the employee lack the critical competencies to attain the goals. The employees are forced to perform well through an effective business procedure.  

Transactional VS Transformational leadership

A Transactional leader reward performance if it exceeds expectations. It is through the continuous dedication and hard work that the organization is able to gain consistent goals. By managing exceptions, leaders commend for exemplary behavior and punish for failing results. All these systems need an inflexible management structure. Employees recognize the rules and have the same opinion to work under these circumstances. People are motivated by external compensation or disciplinary actions like loss of pay or job termination. Bill Gates actively demotivates employees from taking risk as it may harm the organization (Sparrow, Brewster & Chung, 2016).

The organization is build of an organizational structure. A systematized structure allows in managing the tasks in a well-organized way.  An organization managed by transactional leaders, follow a clear chain of command. Employees have to follow the command given to them by the leader. In case if the employees are unhappy they cannot do anything about this. Employees have to do exactly as per the instruction from their manager (Krupp & Shoemaker, 2014). They have to follow the rules and regulations as mentioned in the profile. The penalties are levied for not following the regulations set forth. Microsoft is bringing in advanced changes in the system by been the pioneer in the system. This situation has altogether helped in managing the critical issues taking place at the first hand level. The leader in such type of organization has a complete freedom over the decision making. It is the soul decision of the leader to take advantage of the situation and to work accordingly. In a competitive organization it is one of the most effective ways. This process is important for the growth and development in an organization and developing results(Besson, 2014).

The Transactional leaders follow an effective way through which an organization is able to manage the goals. Policies and procedures are clearly defined in the organization. There is a process through which the employees interact with the organization.  The steps necessary to produce a product or service according to well-known methods is used in a better way. This implies no deviation. Transactional leader communicate in a systematic way. They deal with the situation by managing the critical process.

Incremental and Radical Changes in the organization

in tesla 

The process of innovation management systems aimed at “using” insights and knowledge. This help in managing the organization in an effective way. In order to manage the tasks Tesla has consistent innovative processes and implemented Phase / Gate schemes.  All these intended process help in managing the changes in the best possible way. Elon Musk has developed a control over the modernism process to reduce the intrinsic risks in innovation (Hastrich, 2015). These types of consistent innovation management systems manage the radical innovations on a closely basis. Tesla tries to incorporate r radical innovations at early stages of the innovation funnel. As a transformational leader, Musk has confirmed the goals of Solar City, Tesla, and SpaceX as his vision to alter the world and civilization. His goals comprise reducing global warming by sustainable energy production and consumption through innovation (Neider & Schriesheim, 2014).

Comparison of transactional and transformational leadership

It is evident that the vivid approach of Elon Musk has helped in managing the situation in an effective way. The incumbent firms are challenged and the vehicle industry has seen many changes in the recent time. Tesla is a pioneer of using sustainable energy through electric cars. It is through the company consistent vision that they are able to make changes in the surrounding for managing the multiple changes, the organization is able to focus upon the growth and development taking place in the organization. There are new entrants in the markets to explore new technologies, services. Tesla is a pioneer of managing changes in the current scenario through its persistent vision. . He has recently managed to form alternate energy supply through innovative management. The hydrogen fuel cell is showing some serious promise to the future generation. This has helped them in engaging in a systematic change management process (Taylor, 2016).

In Microsoft 

The incremental innovations are essential to give updates to obtainable business models, products and services. Microsoft is the pioneer of carrying out the Work by introducing significant changes in business model. As a transactional leader, Gates visit new team and ask complicated questions and proceeds only when he is satisfied. This type of innovation usually occur in Corporate Innovation structures where the focus is on making new products and services. Microsoft is using the conventional business model. The organization is still using the old model to manage the changes and to manage effective changes. In this manner the organization is able to manage the changes in the most appropriate way.

  • The purpose is to create new business models
  • To grow revenue and sales
  • To protect existing business models(Galbraith, 2015)

 This type of innovation only serves to expand the business in order to create radical innovation until the next disruption occurs. As a change manager He invests in only those activities that help in managing the business organization. The reason behind the success of an organization resides in effectiveness of work. He only believes in result and focus on gaining a typical organizational insight (Boje & Smith, 2010).

Tesla has incorporated many changes in term of innovative intervention. They are planning to launch an electric car internationally for reducing the carbon footprint. The innovative intervention regarding the organization is important for incorporating changes in the coming years. This will help in synchronizing the efforts with the team and therefore allows in a systematic growth and development.

Microsoft is the pioneer of hardware and software products with a wide approach. They have a competitive approach in carrying out the operations in the organization. In this way they are able to incorporate changes through a well-organized process. Microsoft is not just the market leader, but a principle supplier for the business.  Gates is competitive in nature and can go to any level to thrash his opponent. As an aggressive businessman, Gates has been facing legal issues since its incorporation.  Technically the company is performing way too less in term of gaining a competitive advantage.

 A radical change is incorporated in a systematic way. It is through the gradual approach that the organization can implement changes in a best way. This is appropriate for an organization to manage changes as per the growing market needs. It is through the organizational wide approach that they are able to link the organizational goals with the performance. In order to gain effectiveness, change can only be introduced in an easy wayside to understand the growth structure and development skills.  In case of gaining market competencies it is evident to manage the changes in an appropriate way (Lunenburg, 2012).

Comparing Leadership Types

Overcoming barriers

An organization do faced problem in case of implementation of a change. It is not possible to incorporate change. For gaining efficiency, it is suggested to introduce change in a systematic way by allowing individual to understand the ongoing competing market requirements.

3 possible barriers in implementing change 

Lack of Employee Involvement

 In case of a change, it is difficult for the organization to implement the changes. Employees generally resist to a change. In such a situation it is important to match up with the individual expectation by forming better relationship

There can be a problem in communicating thestartraegy.IN case of miscommunication, employees might feel insecure. Most of the problems in an organization arise due to miscommunication (Miles & Watkins, 2007).

 There can be a problem in managing the culture shift in the organization. A shift in the culture can cause problem in managing the effectiveness. Employees might feel bad about the shift in the culture. These changes are radical in nature and require an appropriate approach.

Communication

 This is the best way through which an individual can deal with the problem. N organization can overcome the issues by dealing with the changes in a systematic way.

Employee Involvement is important for an organization in dealing with the issues related to change. By involving employees it is evident to use effective strategies in gaining organizational goals. An organization is able to manage the change through an appropriate framework by dealing with different issues.

 It is the way through which the individual with the problems related to the issues. For managing the organization it is important to deal with the significant situation by dealing in an effective way. This will help in managing the problems in a critical way. It is through the organization of resources and appropriateness that one can gain competitiveness (Northouse, 2017).

Conclusion 

To conclude leadership and change management is important for a business organization in order to manage changes. It is through the organizational appropriateness, that it is able to overcome the barriers.  The report provides information regarding leadership skill of Elon Musk and Bill Gates. For gaining the results, employees are given with an appropriate training and development process.  It is through the continuous hard work and dedication that the organization is able to gain definite goals. He is the pioneer of carrying out the Work by introducing significant changes in business model..

References

Armstrong, M. & Taylor, S., (2014). Armstrong's handbook of human resource management practice. Kogan Page Publishers.

Bamberger, P.A., Biron, M. & Meshoulam, I., (2014). Human resource strategy: Formulation, implementation, &impact. Routledge.

Bessen, J. (2014). History backs up Tesla’s patent sharing. Harvard Business Review Blog, 13.

Boje, D., & Smith, R. (2010). Re?storying &visualizing the changing entrepreneurial identities of Bill Gates &Richard Branson. Culture &Organization, 16(4), 307-331.

Boxall, P. & Purcell, J., (2011). Strategy &human resource management. Palgrave Macmillan.

Bratton, J. & Gold, J., (2012). Human resource management: theory &practice. Palgrave Macmillan.

Collings, D.G. & Mellahi, K., (2009). Strategic talent management: A review &research agenda. Human resource management review, 19(4), pp.304-313.

Dessler, G., 2009. A framework for human resource management. Pearson Education India.

Dowling, P., (2008). International human resource management: Managing people in a multinational context. Cengage Learning.

Galbraith, J. K. (2015). The new industrial state. Princeton University Press.

Hamel, G., (2008). The future of management. Human Resource Management International Digest, 16(6).

Harzing, A.W. &Pinnington, A. eds., (2010). International human resource management. Sage.

Hastrich, C. (2015). Five-Point Leaders, Leading Innovation in the Behavior Economy.

Hendry, C., 2012. Human resource management. Routledge

Krupp, S., & Schoemaker, P. J. (2014). Winning the long game (p. ix). New York: PublicAffairs.

Lunenburg, F. C. (2012). Power &leadership: an influence process. International journal of management, business, &administration, 15(1), 1-9.

Miles, S. A., & Watkins, M. D. (2007). The leadership team. Harvard business review, 85(4), 90-98.

Neider, L. L., & Schriesheim, C. A. (Eds.). (2014). Advances in authentic &ethical leadership. IAP.

Northouse, P. G. (2017). Introduction to leadership: Concepts &practice. Sage Publications.

Price, A., 2007. Human resource management in a business context. Cengage Learning EMEA.

Pynes, J.E., (2008). Human resources management for public &nonprofit organizations: A strategic approach (Vol. 30). John Wiley & Sons.

Schuler, R.S. &Jackson, S.E., (2008). Strategic human resource management. John Wiley & Sons.

Sparrow, P., Brewster, C. & Chung, C., (2016). Globalizing human resource management. Routledge.

Taylor, G. (2016). A Win-Win Strategy for Fossil-Fuel Producers &Environmentalists. Journal of Futures Studies, 20(3), 123-132.

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