This paper will attempt to address the following four types of leadership styles: Transformational, charismatic, transactional, and instrumental. Transformational and charismatic are similar in many ways, these leadership styles are more people oriented. Transactional and instrumental are similar in many ways, these leadership styles are more task oriented. Transformational and charismatic leaders must be careful to keep their focus people oriented or they may be subject to fall in to narcissism. Transactional and instrumental leaders must not be so task focus that they become autocratic and lose their followers.
Transactional Leadership is defined as leadership that occurs when one person takes the initiative in making contact with others for the purpose of an exchange of valued things (Burns, Wern 1995) However, further research into this type of leadership according to Bass (1981) transactional leadership is based on the hypothesis that followers are motivated through a system of rewards and punishment.' While transactional leadership is based on a quid pro quo (something for something) relationship, transformational leadership is need based. Kark & Shamir (n.d., p.69) found that transactional leaders address the self –interest concerns of followers by exchanging rewards or recognitions for cooperation and compliance behaviors consistent with task requirements.
In the current economy, it is easy to state that both transformation and transactional leadership are widely used in organizations, however transactional leadership will rule out. This is because the employer (leader) now has the bargaining power for the follower (employee) to meet the leaders expectation for the follower to be rewarded, if the follower fails the punishment ensues. Many employees across the country have had to give up benefits, pay, and furlough days to keep their jobs. Given