[MUSIC] Given the evidence that leaders differ in the extent to which they provide structure for their followers, an interesting question to ask is what style does the leader show in this structuring activity? Research suggests that it is possible to differentiate between democratic and autocratic styles here. Democratic leadership is said to be characterized by a tendency to empower others. By setting high but not unrealistic goals. By making sure all followers and group members are fully involve in activities, and by facilitating the decision making process without dictating the way that decisions are made or what the decisions are. >> We've got the student open day coming up. Any ideas on how to approach that? >> Well, I was going to compile a list of the e-mail addresses and just get the digital posters sent out. >> I was actually thinking of taking care of the food, stuff for sandwiches, and stuff for the children. >> I was thinking a big social media blitz, Facebook, Twitter, all good. >> And we also need to kind of think about the number of people that are going to come. Because obviously that's going to depend on the venue. >> I have a good contact at an events planning company. Perhaps he can be some help. >> In contrast, autocratic leaders tend to disempower others and take control of the decision making process. >> We've got the student open day coming up. Now, the way we're going to approach it is Frank, I want you to do research on the new client's website. Peter, you're going to contact Leigh, inform her about the next step. And Laura, I want you to get me the documents ready so we can sign off on them. >> So, we know that leaders vary in the extent to which they offer consideration to followers, and the extent to which they impose structures on those around them. And we also know that some leaders tend to be relatively autocratic in style, but the others are more democratic. Now, there is one last major distinction between leadership styles that we need to know about. And this is the extent to which leaders are charismatic and tend to transform the world around them. Just as the distinction between autocratic and democratic leaders, research that's involved in looking at the charisma of leaders differentiate between two types of leadership style, transactional and transformational. So, what are the characteristics of transactional and transformational leaders? Well, let's start with transactional leaders. Transactional leaders don't try to change the world around them. As long as their followers are meeting the expectations that they have been set, transactional leaders don't try to change their ways that their followers work. Also, transactional leaders are said to control the rewards that their followers receive. Followers are rewarded if and only if they perform or try hard enough. In contrast, transformational leaders are set to treat followers as individuals and evaluate them on their own merit. They also try to develop followers by offering them opportunities through mentoring and coaching. They encourage their followers to think for themselves. They offer a vision of the future, a vision which seems attainable, and is both clear and positive. The transformational leader is generous in the way he or she presents achievements, sharing the glory with others. And this type of leader is also willing to go the extra mile. And when necessary, make personal sacrifices for the good of his or her followers or for the organization as a whole. Now, it is important to point out that transactional and transformational leadership, refer to different styles of leadership, not different types of people. So in principle, someone might act as a transactional leader in one environment, and the transformational leader in another. What's more, it is not the case that at any one time someone is either being a transactional leader or a transformational leader. It is quite possible for a leader to be operating in transactional and transformational ways. Or indeed, neither to be operating in either a transactional or a transformational manner. Another interesting thing about the distinction between transformational and transactional leaders, is that it is tempting to assume that transformational leaders, or those people working in their transformational style, exist at the top of organizations, whereas lower level managers tend to be more transactional. In fact, there's evidence that both types of manager can be found at all levels of an organization. However, evidence does suggest that leaders who are transformational tend to have more successful careers themselves. And also, that their followers view them more positively, than they do leaders who tend to adopt a more transactional style. So if transformational and transactional leadership brings about success, what is it about these two leadership styles which makes them effective? Research on this issue was reviewed by an academic called Bryman in 1992. Bryman found that in the case of transactional leadership, the factors that seemed to have the biggest impact on the effort and work performance of followers are charisma and motivating through inspiration. Transformational leaders who offer an image of an ideal, who present a figure that followers admire and look up to, and to inspire their workforce, are the most effective. In the case of transformational leaders, it's the ones who ensure that the rewards given to followers reflect the effort they put in and the performance that they achieve, that are the most successful. So what are the practical implications of this for managers? One is that it is helpful for managers to reflect on their own style. Do you tend to be democratic or autocratic? Is it easier and more natural for you to adopt a transactional or a transformational style? Another is that managers should consider the situation they are faced with, the people they're working with, the constraints that they are working under. And then adopt a style of management which suits that situation. Thank you very much for listening to this session on leadership. [MUSIC]
