According to Burns (1978) transformational leadership has a set of category constructs such as values, morals, farsightedness, long term goals, principles, acute awareness about the dividing line between causes and symptoms, mission statements, strategic perspectives and human resources. Transformational leadership is primarily and immediately concerned with winning the support of those subordinates to achieve predefined organizational goals. While many such objectives are not realized in the short run due to a variety of reasons such as inadequate planning and wrong forecasts about cash flow, sales revenue and profits, there can be some recovery in the long term. Transformational leader seeks with fervent hope to inculcate a sense of responsibility and pride in achievements among the subordinates. A critical theoretical perspective that has been developed on this particular aspect looks at the transformational leader's attitude towards hisher subordinates as power-sharing partners whose contribution to the productive process is rewarded with acknowledgment.
However according to the ...
The former is directly related to the transactional leadership theory while the latter is linked to the then populist ideological concept of 'share owning democracy' (www.harvardbusiness.org). Neither of them worked. Instead Burr should have focused on the very management and organizational culture at People Express. For instance he could have done better by creating proper channels of communication for continuous feedback of information, especially from the lower layers. Secondly employees could have been encouraged to take part in service 'quality improvement circles'. People orientation is basically a concept associated with democratic organizational structure and management style. However Burr failed to notice that what he needed was a skills identification strategy to overcome the level of competition in the market. This is true even today.
Ritz Carlton Hotel Company has a set of specific values and its philosophy based on gold standards - Credo, Motto, three steps of service, service values, 6th diamond and the employees promise - is characterized by a desire to achieve motivation related positive synergies at each level of the organizational hierarchy (www.ritzcarlton.com). However leadership style of Ritz Carlton is characterized by transformational and democratic principles and employees are empowered to provide their superior service to create a unique personal experience to its guests. Management and the subordinates are always responsive to their guests in order to achieve critical success factors of the organization. The existing degree of freedom for the lower level tiers of the hierarchy has proved that the organization has been run on the principle of broader employee participation in the decision making process. However critics have