In our knowledge driven world, the power to lead is shifting to the power to promote new ideas, a better way, based on innovation. Leadership style is the manner and approach of providing direction implementing plans and motivating people. The style that individuals use will be based on a combination of their belief, values and preferences, as wee as the organizational culture and norms which will encourage some style and discourage others. Many leaders don’t know which types of leaders there are and don’t know how to apply in their society or organization. So, most leaders have to know which types leader there are and how to apply at the right people. There are three types of leadership styles in psychology field that are charismatic, transformational and transactional.
A charismatic leader is a positive and compelling quality of a person that makes many others want to be led by that person also an important element of charismatic leadership involves the attributions made by group members about the characteristic of leader and the results they achieve. A charismatic leader is proven to be more effective because of the power he wields as a result of his charm and grace. It is also easier for him to develop trust among people by ensuring their involvement in the process of growth and development. He is someone who can clearly visualize the future. Thus, people almost attribute to him a God-like quality, and generally, follow him to the last word. The charismatic leader can, thus, also be described as the visionary leader. The major advantage of this leadership style is that it can prove excellent to achieve positive changes and results. On the other hand, it can also be misused for personal gains.
A transformational leader is someone who is so passionate, as to rub off his vision and passion on his followers. The transformational leader also is one who brings about positive major changes in an organization and moves group members beyond themselves interest for the goal of the groups, organization and society. A transformational leader cares about the growth of his people, and ensures the same by convincing his people to comply with his vision.
He is enthusiastic, and committed towards achieving the goal, which may or may not be clear. Even so, he will readily participate in exploring different possibilities that will lead to the goal. Even if the vision is unclear, the direction will always be clear with a transformational leader. Therefore, he may be similar to a participative or democratic leader, who involves his followers in the decision-making process. He will gather large groups of people through various ceremonies to pump them up with the same level of enthusiasm he feels. The most important characteristic of a transformational leader is the deep level of commitment he has toward attaining his goal.
A sharp contrast to the charismatic and transformational leader, the transactional leader functions on the simple logic, that rewards and punishment will stimulate his people to perform better. Transactional leadership is a set of leadership behaviors that emphasizes exchanges or bargains between manager and follower, and focuses on how current needs of subordinates can be fulfilled. Generally, transactional leadership is the other name for “changes”. A transactional leader will define clear rules and framework to function by and will expect his subordinates to be completely responsible for the work delegated to them. As such, their performance will determine whether they will be rewarded or punished.
This kind of leadership is generally followed in large organizations, and in some ways is an effective tool of corporate leadership. Here, employees are not involved in the process of decision-making. They are just means to the end of goal attainment. The primary advantage of this method of leadership is the reinforcements used to promote performance.
In the nut shell, there are several styles of leadership in the organizations. Every leader should make an effort in figuring out their most suitable leadership style for themselves in accordance with their capabilities. Effective leaders should also train themselves to be able to adopt and change different leadership styles as the situation demands it.