Mis-using, under-using, or over-using a particular style of leadership can lead to ineffectiveness of leadership. Leadership is influenced by its standard, responsibility, flexibility, commitment, and clarity; the existing complex environment requires effective style of leadership. According to Tsai, Tsai, and Wang, (2011, p. 5320), an individual with high emotional intelligence is in a position to understand, manage, embrace his emotions as well as those of others; he can also curb emotional disturbances. These traits lead to increased productivity and performance in the organization. Needless to say, emotional intelligence can be fostered through learning; for instance, a leader with high emotional intelligence is likely to perform better compared to another with only high IQ.
Therefore, a high degree of emotional intelligence, which can assist in managing and transforming, is required in any leadership style. The preferred leadership style is as a result of a leader’s thinking. The ability of an organization to succeed solely depends on its leaders and their leadership styles. The use of appropriate leadership styles can impact on employee’s satisfaction, productivity, and commitment. Generally, transactional leadership involves a process in which leaders offer subordinates incentives for their services, and therefore, it is an exchange process (Tsai, Tsai, and Wang, 2011, p. 5321).
Therefore, reward mechanisms are involved in transactional style of leadership, which aim at motivating employees to improve on their performance; therefore, the rewards symbolize inspiration. Transformational leadership style involves the process of providing employees with confidence, which aids in increasing their performance beyond expectations. Transformational leaders inspire and motivate their employees to reach their potential and improve their performance levels (Modassir and Singh, 2008, p. 4). Moreover, transformational leadership style consists of four dimensions, namely, individualized influence, intellectual stimulation, individual consideration, and inspirational motivation (Modassir and Singh, 2008, p. 4).
Individualized influence occurs when leaders earn the trust of their employees; this occurs when leaders do the right thing, hence becoming role models. As a result, they contribute to change in their employees. Intellectual stimulation promotes intelligence and abilities to solve problems, and as a result, employees develop abilities to find solutions. Individual consideration involves a leaders’ compassion, responsive and appreciative traits.
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