The document defines and compares three types of leaders: charismatic leaders who inspire through strong communication skills and personality; transactional leaders who focus on structure, rules and incentives; and transformational leaders who motivate employees to achieve more through vision, inspiration and autonomy. Examples are given of famous people who demonstrated each leadership style. The pros and cons of each style are also summarized.

1. B.Tanya (usc15019)

2. There are three different types of leader.
They are:
1. Charismatic leader
2. Transactional leader
3. Transformational leader

3. CHARISMATIC LEADER:
Charismatic leaders are the leader who
encourage certain behaviours in others via
force of personality, persuasion and
eloquent communication.
Charismatic leaders inspire their
followers to do things or to do things
better; this is done by conjuring up
enthusiasm in others for a stated vision or
goal.

4.  They are unconventional in nature
 They have a vision to aspire
 They are sensitive to followers’ need
 Charismatic leaders have extraordinary skills in
communication.
 charismatic leaders have maturity and character
 They are truly confident
 They are warm, open, and positive body language
 He knows how important it is to continually improve
himself

5.  Mother Teresa: Mother Teresa was a Roman Catholic nun best
known for her work with the poor. “Let us always meet each other
with smile, for the smile is the beginning of love.”
 Pope John Paul II: Pope John Paul II was instrumental in examining
the Roman Catholic Church’s role in the modern world. He travelled
to more than 100 countries and was a vocal advocate for human
rights. “Freedom consists not in doing what we like, but in
having the right to do what we ought.”
 Sir Winston Churchill: Although he is best known for being the
prime minister of England during World War ll, he honed his
communication skills as a war correspondent in World War l and
crafted legislation for Parliament as a member. He was a powerful
orator during Germany’s World War II bombing of England.
“Courage is what it takes to stand up and speak; courage is
also what it takes to sit down and listen.”

6.  Charismatic leadership pros
 Charismatic leaders inspire people to work together for a common
cause
 Organizations are committed to a central mission
 Management prioritizes learning from mistakes in an effort to
succeed in their mission
 Charismatic-led companies tend to be cohesive because their
workers have a clear purpose
Charismatic leadership cons
 Organizations can become dependent on charismatic leaders and
may suffer if he or she retires, leaves the company, or dies suddenly
 Charismatic leaders sometimes become unresponsive to their
subordinates or constituents
 These leaders may not learn from their mistakes, compounding them

7.  Transactional leadership, also known as managerial leadership,
focuses on supervision, organization, and performance
 Transactional leadership is a style of leadership in which leaders
promote compliance by followers through both rewards and
punishments.
 They believe in achieving results
 Very pragmatic in approach to resolve issues and problems
 It complements rigid organizational structure

8.  They focus on short-term goals
 They favour structured policies and procedures
 They thrive on following rules and doing things
correctly
 They tend to be inflexible
 They are opposed to change

9.  Bill Gates: Bill Gates was born in Seattle in 1955. In his early teens,
he met Paul Allen at the Lakeside School, where they both
developed computer programs as a hobby. When Gates went to
Harvard, Allen went to work as a programmer for Honeywell in
Boston. In 1975, they started Microsoft, and by 1978, the company
had grossed $2.5 million, when Gates was 23. In 1985,
Microsoft launched Windows. Bill Gates is now one of the richest
people in the world. As a transactional leader, he used to visit new
product teams and ask difficult questions until he was satisfied that
the teams were on track and understood the goal.
 “The first rule of any technology used in a business is that
automation applied to an efficient operation will magnify the
efficiency. The second is that automation applied to an inefficient
operation will magnify the inefficiency.”

10.  Howard Schultz: Schultz wanted to grow Starbucks, but the owners
wanted to stay small. Schultz left and opened his own company in
1985. With the help of investors in 1987, he bought Starbucks and
merged the two companies. By 2006, Schultz was ranked 394 on
Forbes magazine’s list of the 400 richest people in America. As a
transactional leader, he was responsible for the vision and
implementation of the Starbucks model.
 “Starbucks is not an advertiser; people think we are a great
marketing company, but in fact we spend very little money on
marketing and more money on training our people than advertising.”

11. Transactional leadership pros:
 Rewards those who are motivated by self-interest to follow
instructions
 Provides an unambiguous structure for large organizations, systems
requiring repetitive tasks and infinitely reproducible environments
 Achieves short-term goals quickly
 Rewards and penalties are clearly defined for workers
Transactional leadership cons:
 Rewards the worker on a practical level only, such as money or
perks
 Creativity is limited since the goals and objectives are already set
 Does not reward personal initiative

12.  Transformational leadership is a style of leadership
where a leader works with subordinates to identify
needed change, creating a vision to guide the change
through inspiration, and executing the change in tandem
with committed members of a group.
 They inspire employees to achieve great results
 They give autonomy to the workers to take decisions
 They are good in interpersonal relationship with
followers
 They are good as a motivator, communicates well and
conflict resolver

13.  Very well-organized and expect their followers to be
creative
 Team-oriented and expect that followers will work
together to create the best possible results
 Respected, and in turn respects followers
 Acts as coach of the team. He or she provides training
and motivation to reach the desired goals
 Responsible for their team, but also instils responsibility
into team members
 Engenders respect through rapport and a personal
influence

14.  ROSS PAROT: H. Ross Perot started his career as a salesman for
IBM. In the 1960s he started his own company, Electric Data
Systems (EDS), one of the first businesses that built and serviced
computer systems for other companies. In contrast to IBM, Perot
trained his workers to do whatever needed to be done for a customer
without waiting for approval. There was a strong bias toward action.
 MAHATMA GANDHI: India needed a change and Gandhi was the
one who was going to be the leader of that change. In our
commentary, it says that transformational leaders help their
followers achieve more than what is expected of them. He brought
an entire country (India) out from under the rule of another (Great
Britain).

15. Transformational leadership pros:
 Excellent at communicating new ideas
 Good at balancing short-term vision and long-term goals
 Experience building strong coalitions and establishing
mutual trust
 They have integrity and high emotional intelligence
(empathy with others)
Transformational leadership cons:
 Ineffective in initial stage or ad-hoc situations
 Require an existing structure to fix
 Bad fit in bureaucratic structures