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Is this e.g. of Transformational or Transactional Leadership style?
Strategic Management
Top management decides to bring about a major change in work culture. 20 out of 100 employees decide to go against it. HR dept fires them and replaces them with 15 new more efficient employees who support the new culture. What kind of leadership is this?
Answers (2)
Best Answer
This is a case of transactional leadership. A key difference is in the manner in which an employee is incentivised in an organisation. In case of transformational leadership, they are inspired to bring change from within and encouraged to bring forth their points. Whereas in case of transactional leadership, it is a clear case of rewards or punishments for good or bad behaviour in tune with what the organisation wants. In the given case, company has fired employees for withstanding change. Had this been transformational leadership, they would have been encouraged to arrive at a suitable compromise and the rules would not have been so hard and fast.
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