Comparing Transformational Leaders and Transactional Leaders - Assignment Example

Module Comparing Transformational leaders and Transactional leaders Leadership is a key element of management that significantlydetermines the success of an organization. Different leaders apply distinct leadership styles to motivate and lead organizations as illustrated in this paper (Avolio and Bernard 7). The paper will examine the similarities and differences between transformational leaders and transactional leaders by comparing the characteristics and abilities of Michael Dell and Alan Sugar in their leadership positions. Michael Dell is a transformational leader while Alan Sugar is a transactional leader. Vision In 1984, Michael Dell founded Dell Computer Corporation, which grew to become one of the largest global computer companies. Dell envisioned a great opportunity in the computing technology and decided to provide customers with computers at affordable prices and efficiently. He started off with a thousand dollars and saw technology as a means of increasing people’s potential. Dell’s vision was to design, manufacture and sell great computers that were affordable to every individual. He wanted to enhance the process of purchasing computers and through his vision he was able to redefine the manner in which personal computers were sold. In 1994, Dell became the youngest Chief Executive Officer of a Fortune 500 company by keeping to his vision and leading his company to great heights (Krivda 22). Alan Sugar was able to build Amstrad, a company that dealt with consumer electronics by establishing authority and giving clear goals and objectives to his employees. Sugar is a commanding leader who indicates the direction that the company should take and does not consult his subordinates on any issue concerning the company’s dealings. While at the age of twenty one, Alan Sugar saw various opportunities in the electronics’ business (Sugar 3). He grew up in an impoverished part of Britain and envisioned being rich, thus focusing on a successful path by taking the lead role and focusing the company in the direction that he wanted. His vision also encompasses the value of customers as he notes that the customers are always right and therefore, seeks to provide quality products and services. He directs his employees in a way that will ensure profitability for his business as he seeks to reward the employees that meet their goals and punishes those that do not. He steers the business to success by asserting authority on the employees and setting goals that the employee must meet. Sugar’s vision is not limited to a certain business field as he also likes to diversify by starting business ventures ranging from computers, electronics, transport and even sports (Sugar 10). Ability to Foster Innovation Michael Dell is a transformational leader who values innovation in his company. He promotes creativity and pictures his employees as team members. Dell fosters innovation through intellectual stimulation as he challenges the team members to develop new ideas and encourages the employees to implement them. Dell realizes that the technology industry is subject to many changes, therefore, placing emphasis on creativity. He enhances innovation by creating teams composed of talented people who have knowledge in diverse fields, hence can be able to develop new ideas (Epitropaki and Robin 300). Dell started the company through innovation as he took a great risk based on a new idea. Dell cherishes diversity and insists on creating teams that have members with different backgrounds. He believes that this process enables to foster innovation since the different thoughts and approaches help to solve problems and breed to innovation. Dell consults his team members and encourages them to think critically and come up with new ideas, thus fostering innovation. He also works with talented people who believe in his vision, therefore, can easily develop new ideas relating to the field of technology (Krivda 27). Alan Sugar also utilizes innovation to help his company shake off some competition. Sugar is innovative and comes up with creative ideas, carries out extensive research and implements the ideas. Sugar also fosters innovation by using an honest approach to innovation (Sugar 15). He hires individual inventors or talented individuals and expects them to develop new ideas or new products for his company. Unlike Michael Dell, Sugar does not consult with them as he is not conversant with the field of electronics. However, Sugar provides the innovators with tasks and instructions, monitors progress and expects results. This can be confirmed in his television show, the Apprentice (Sugar 23). Charisma Michael Dell is not considered as a strong charismatic leader, but inherently possesses some form of charisma. As Dell started his company, many individuals working with him regarded him as a charismatic leader. He was shy and likeable but showed determination and energy when he pursued his goals. He was enthusiastic about computers and motivated his employees through his personality. Dell had the ability to persuade his employees by giving them reflective talks that would increase their motivation. He also motivated his employees through his enthusiasm and expertise in computers. Dell was knowledgeable with computers and he gained the loyalty and respect of his employees, customers and other stakeholders as a result. Presently, Dell motivates others through motivational talks, which have are presented in a reflective manner. Although, Dell does not come off as a charismatic leader, he has a number of attributes that show charisma in his leadership style (Krivda 25). On the other hand, Alan Sugar possesses few attributes that can reflect charisma. He is enthusiastic in his vision and he can motivate his employers through his aggressive nature in business. He is self-confident and believes that he can succeed. However, Sugar is viewed as an authoritative leader who leads through coercion. He utilizes rewards and punishment to motivate his workers. Unlike Michael Dell, Alan Sugar’s self-confidence can be interpreted as ego. Many people do not see charisma in him (Sugar 17). Ability to Get Results Michael Dell has the ability to get results through hard work and his form of leadership. Dell was able to start the company and make profits by using a proactive form of leadership, implementing new ideas, encouraging the employees to work as teams and fostering innovation. Dell learns from his subordinates and encourages them to work towards the company’s goal, therefore, resulting to motivation. Dell is able to connect with other people, an interactive activity that fosters good relationships. This helps him get great results for his company (Epitropaki and Robin 307). On the other hand, Alan Sugar was able to create a company with a hundred pounds and turned it into a business worth more than five hundred million pounds. This shows that his unpopular form of leadership also enables him to obtain results. He defines the direction that his company should take and ensures that all the employees meet the company’s goals. Sugar is able to obtain results from his motivational style of rewarding the employees that meet their goals and punishing those who do not. He has full control of his company; therefore, he is able to make decisions without consulting his subordinates. This enables Sugar to get the results he needs and proves that his leadership style works well with his company (Epitropaki and Robin 313). Works Cited Avolio, Bruce J., and Bernard M. Bass. Developing potential across a full range of leadership cases on transactional and transformational leadership. Mahwah, N.J.: Lawrence Erlbaum Associates, 2002. Print. Epitropaki, Olga, and Robin Martin. "Transformational–transactional leadership and upward influence: The role of Relative Leader–Member Exchanges (RLMX) and Perceived Organizational Support (POS)." The Leadership Quarterly 24.2 (2013): 299-315. Print. Krivda, Cheryl. "The Vision of Michael Dell." Ariba Magazine 2.1 (2012): 22-28. Print. Sugar, Alan. The world according to Alan Sugar. London: Macmillan, 2011. Print. Read More