Transformational leadership type in public and private organizations

Author:Mihaela Rus
Position:Senior Lecturer, PhD, 'Ovidius' University of Constanta
European Integration - Realities and Perspectives 2012
Transformational Leadership Type in
Public and Private Organizations
Mihaela Rus
Abstract: T he issue concerning leadership is a very complex one, that is why taking into the account the
plurity of styles already existent many ti mes it was asked the questions: „What type of leadership is
necessary?”. By asking this question, we a re thinking of a person responsible with organizing or coor dinating
work or the ones hired to do this, to think of what people want, to solve the management problems in group.
This study is intended as a comparison of the two types of leadership (transformational vs. transactional) in
terms of employee performance in public and private organizations. To measure performance and chose two
indicators: satisfaction and productivity.
This study falls into the category of research studies the type of
driving through subordinates with b oth theoretical and practical implications. The efficiency of this type of
leadership has been demonstrated by st udies especially in the political and military and very few st udies have
been made in industrial .Type of transformational leadership is better than transactional perceived as
transformational leaders are closer to the needs of employees and continuously investigate t hese necessities.
This paper presents a practical validity as advising manager s to develop a transformational type of leadership,
both public and pr ivate organizations, leads to better performance. Also open new avenues of research,
among which we can mention: study the impact of organizational culture on the adoption of transformational
type vs transactional type; decision-making mechanisms in the type of transformational leadership; initiate
training programs to develop a transformational type of leadership.
Keywords: leadership; transformational; performance; productivity; organization
JEL Classification: L2; L21; L23; L25; M1; M12
1 Introduction
Quality management in office by managers at any hierarchical level is an important measure of
business success. It is estimated that the stake or measure quality of performance of this function lies
in determining common and effective action of the employees in the objectives of the organization.
Low, Kroeck and Sivasubramaniam (1996) showed in their study that there is a strong positive
correlation between transformational leader behaviors and objective measures of performance. In
research conducted in the military (Gal, 1987) showed that involvement is the main concept in military
motivation and there is a strong transformational leadership on all levels, more obedience is attributed
to the punishment that correlates with the transactional style. Individual consideration, for example, as
part of the transformational style, existing leadership at all levels, causes an increase in involvement.
Eden and Shani (1982) in their study highlight the link between self-esteem of employees and
transformational leaders. Thus, self-esteem of employees is high and reinforced by an implicit
transformational leadership leads to obtain high performance. In contrast, transactional leadership
induces stress and benefit the employee does not satisfy their interests. Joesteling & Joesteling (1972)
presents the role model status on self-esteem high.
In terms of effort was a strong positive correlation between the type of transformational leadership and
extra effort of subordinates (Mater & Bass, 1988, Howell & Avolio, 1993). Shamir, House & Arthur
Senior Lecturer, PhD, “Ovidius” University of Constanta, Address: Universitatii Alley no 1, Constanta, Romania, tel:
+40241694330, Corresponding author:

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