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Managing Organisations

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1. Would you describe Jim Steiner’s approach as a Transactional, Charismatic or Transformational style of leadership?
Styles of Leadership can play and important role in organisational development. To explain this it is best to analyse the meaning of each style. The three most common styles are Transactional, Transformational and Charismatic.
Transactional: This style is common amongst many companies. It is based on reward and punishment as a means of motivation. This type of leader has all the power to make staff do what they are told. He/she has complete control over staff. The Staff are given an assignment and must do it in accordance with the requirements of the leader. The reward is in the form of money or any award for compliance or effort. The punishment for not complying could be dismissal, loss of bonuses, et cetera. The Transactional Leader makes it clear at the onset what is expected of the staff, what results are to be achieved, what orders are to be followed, when the task is to be completed. The results will determine whether the employee is rewarded or punished.
This style is for people who lack ambition, who are happy with the wages they receive. People who like to be led, the type of people that come to work, do what they are expected to do, and then go home.
I would not place Jim Steiner in this category. From what is written, if he was this type of Leader he would have followed corporate managements request and gotten rid of the existing management team, no questions asked. However, his thoughts of the situation was different as he did not believe that was the answer to the company’s problem, instead he took it upon himself to change their ways of thinking by involving them realise their potential and, maybe, self evaluation.
(Aronson 2001), (Burns 1978), (Clegg & Kornberger & Pitsis 2008), (Kanungo 2001), (Kurnik 2010).
Transformational:

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