PEER MENTOR.NET!
ISSUE NO.
5
FEBRUARY 2010
MENTOR
Leadership Styles
Emotional
Intelligence
“Transformational Vs Transactional Leadership”
Rae Townsend, President and CEO of
i.task.Inc, an Executive Recruiting and
Management Consulting business based in
Oakville Ontario, talks about the advantages
of different leadership styles. The transactional
leadership theory developed by Weber and
Bass later became part of a three style
model: transformational, transactional and
laissez faire. Transactional leadership was
described as the management of money and
materials; whereas the University of Notre
Dame describes transformational leaders as
exploiting the needs of the follower. Laissez
faire leaders allow the workers to make their
own decisions like a rudder-less ship. Bernard
Bass believed each leader exhibited a style
along a continuum of these three styles.
So what does this look like in reality?
Townsend describes a very different picture in
practice. He went on to say, “there is an
ongoing gap in transactional leadership in
business, transcending the pure operational
aspects. Good managers can execute
fundamentals that make day to day business
more successful, but it takes special leadership
to envision and act upon how things ought to
be, rather than how they currently exist.”
Rae used the example of CN Rail. “CN’s
(ex Pres/CEO) E. Hunter Harrison has, by the
evidence shown, exceptional leadership in the
transactional management of existing
resources since CN became private in 1991.
So much so, that Bill Gates through his
investment company is now the largest single
shareholder in CN Rail; and it is believed that
Berkshire Hathaway also has a vested interest
in the same.” Rae added that, “Warren Buffet,
simply won’t buy a business or stock unless
he has faith in their executive suite. To Buffet,
evidenced sound management is everything.
Simply look at historical dividend payouts at
CN over the past nine years in validating this
point.”
PEER MENTOR.NET
On the other side, Rae referenced
an example of transformational
leadership. Rae said, “Alan Mulally,
President and CEO for the Ford
Motor Company, would walk the floor
with workers and listen to what they
had to say. He came back quickly with
a vision and methodology in moving
forward. Within four years the
business is again competitive, gaining
market share and is viable once again.
Transformation leadership works, yet
it is difficult for everyone when one’s
mere survival and ongoing existence is
at stake.”
Rae states that, “leadership needs
to be flexible, appropriate and
effective to what is needed for each
unique frame of reference. There are
few exceptional leaders who
effectively demonstrate the capacity
to utilize variable styles. i.task.Inc
has the connectivity, the value driven
process, and the relentless pursuit in
helping organizations to get the
people right based on circumstance.”
E.Q. is rapidly becoming
one of the most requested
assessment services for
leaders and aspiring leaders.
There are many tools to help
leaders learn about
themselves and their
leadership styles. It is always
wise to be humble in
leadership, walk the talk of
professional development,
and to learn as much about
yourself as you do with your
charges.
Some leaders can work
effectively in the affective
domain because they have
natural or inherent abilities
with emotional intelligence.
As a result they are able to
support and motivate
individuals easily toward
common organizational
goals.
By understanding
business and / or personnel
strengths and weaknesses,
leaders are better able to
employ both transactional
and transformational
leadership styles where
appropriate.
For leadership training,
contact: Bryce Carter at
www.itask.ca
24 Muskoka Court, Kitchener, Ontario, Canada. N2B 3M2
admin@peermentor.net