Leadership, the process by which leader motivate followers to perform well is a critical element in ensuring the sustainability of an organization

. Effective leadership always plays an important role in the growth and better performance of the organization Research in the field of leadership has never saturated with theoretical and conceptual quests for leadership styles that work with any situation and follower’s condition. Regardless of the type of organization, leadership is discerned to play a vital role in establishing high performing teams. Therefore, the purpose of this essay was to extend do certain leadership styles bring benefits to their followers and organization? Which is the best leadership styles should be used in organizations? Contemporary literature on leadership mainly focuses on the two main dimensions of leadership i.e. transactional and transformational leadership Transactional leadership is grounded by an exchange relationship and refers to a situation where leaders provide rewards to followers who achieve good performance and, on the contrary put on punishment to those who are not. Transformational leadership, on the other hand increases followers’ motivation to achieve higher performance, commitment and trust to the organization (Bass 1985). Thus, while rules and regulations dominate the transactional organization, adaptability forms the important characteristics stressed that transformational leadership is strengthened by accrued benefits while transactional leadership is solely based on the economics exchange. (1997) Many research has been conducted to determine the impact of transformational and transactional leadership style in organizations. Research attempted to examine the effects of leadership style on the organization commitment and job satisfaction of customer contact personnel in two services. The subjects were 77 branch managers from three regional banking organizations and 47 store managers from one national food chain. Emery et. al (2007) found that the effect of transformational factors of charisma, intellectual stimulation, and individual consideration are more highly correlated with job satisfaction and organizational commitment than the transactional factors of contingency reward and management-by-exception. These findings seem to support Bass’s (1985) model that suggests that transformational leadership is more predictive of individual and group performance.

traditions. thus enhancing creativity in groups (Diehl and Stroebe. leads employee intention to quit. In contrast transactional leadership tends to give followers rewards in exchange for achieving certain levels of performance. 1988). al. According to Sosik et. Hater & Bass. the transformational leader’s intellectually stimulating behaviours. 1990). 1985). intellectual stimulations is a key characteristic of transformational leadership which is likely to promote creativity by encouraging followers to think ‘out of the box’ and by enhancing generative and exploratory thinking. and objectives to followers. For example. all contributing to higher levels of work related frustration. There are no active and intentional efforts mabe by the transactional lader to enhance followers’ creativity. (Waldman et. followers are not expected to go beyond their intial expectations nor are they motivated to try out creative solutions to change the status quo. 1991). and beliefs. statements and attitudes can not only help followers append more time on generating unconventional ideas. when a group of subordinates engages in a brainstorming task to generate innovative and creative approaches to solve their problems. As such. 1985. goals. Followers are encouraged to question their own values. Hospitality industry workers. multi-lingual. but also help them reduce the potential effect of evaluation apprehension.Transformational leaders tend to build creativity inducing environments through intellectual stimulation (Bass. which may hold creativity at the minimal level (Amabile. are subjected to a dynamic. Transformational leadership clarifies mission. Research was done by surveying a sample of restaurant services employees from India. multinational. and many times to unplanned or unforeseen peaks in their working environments. al (1998). Often-times their performance is closely monitored based on a preassigned standard. 1998) Transformational leadership and empowerment also can reduce the degree of perceived intention of customer contact service employees to leave the hospitality organization. Followers are extrinsically motivated to perform their job under the transactional leader. al (2011) found significant negative relationship between transformational leadership and employee intention to quit. which in turn. Transformational leaders stimulate their followers to think about old problems in new ways (Bass. Gill et. . as well as the leader’s beliefs and assumptions. like other workers.

While study of Lowe et. They identified and contacted thirty randomly sampled nonprofit orchestra located in a variety of cities in Germany. which is about a visionary manager with cohesive group norms and establishing innovative thinking within group. and enthusiasm in the followers. goals. and objectives of the organization reduces the tension of workers related to their daily task and thus reduces employee intention to quit. Research by Rowold and Rohmann (2009) was to provide information about the effectiveness of transformational and transactional leadership style in the domain of German nonprofits orchestra. A high level of satisfaction among members is especially important in nonprofit organization such as recreational orchestra. compensation and supervisor’s satisfaction. The research also shows that. especially in nonprofit organizations where members are free to join or leave. partially because they prevent negative emotions on their followers’ side. which pertains to the provision of either positive rewards in case of meeting established goals or negative rewards when the performer fails to achieve the desired objective. One of the researched has been conducted to determine the impact of transformational and transactional leadership style on job success and career satisfaction from various private organizations working in Pakistan. al (1996) found that transformational leadership was associated more strongly with subjective performance indicators in public organization (for example. pride. admiration. transactional leadership was .Clarification of mission. This builds a strong relationship with concrete success in terms of career growth. government agencies). The study of Riaz and Haider (2010) found that in the private sector. transactional leadership style positively and significantly related to job success as compared to transformational leadership style. The analysis further gives the positive and relatively higher value of transformational leadership style which reveals that partial or full transformational leadership approach has also been applied. The research shows that transformational leaders will foster performance. it is theorized that transformational leadership reduces employee intention to quit in the hospitality industry. Transformational leadership also was positively related to positive emotions because leaders induce joy. Preventing negative emotions seems to be crucial. Therefore.

they are not mutually exclusive. which assumed that appropriate leader’s behavior varies from one situation to another. Additionally. Transactional and transformational leadership behaviors provided varying results in different scenarios. The best course of action or leadership behavior is required in accordance with the situational variable (Griffin. qualities of the followers and aspects of the situation play significant role in overall success (Hick and Gullett. The next school of thought originated in the form of situational theories.positively related to positive emotions. In some situation. Bass and Avolio (1994) argued that although the transformational and transactional leadership are different paradigms. transformational leadership behavior was found significantly affecting predicting variable and in some cases transactional leadership behavior. Griffin. The simple lower-order (contingent reward) relationship and conductors’ active search for error and mistakes (active management by exception) yielded positive emotions on the followers’ side. No uniform leadership style is the best rather various variables like the leadership style. 1999) . 1987. 1999).