Introduction
Transformational and transactional leaders can have a positive impact on corporate culture. Employee satisfaction is sought by transactional leaders through bargaining, or “bartering,” for desired behaviors. Transformational leaders inspire others by instilling a sense of purpose, encouraging new thinking, and improving and creating learning opportunities. Through a shared vision and similar learning experience, transformational leaders also try to promote activities and behavior. In contrast, transactional leaders focus on ensuring required conduct and procedures are implemented.
Leadership Characteristics of Stan and David
Stan practiced “transactional leadership,” he expected his team members to follow his orders in exchange for large bonuses. Transactional leaders expect their teams to follow their orders and to be able to discipline if the work does not meet the leader’s standards. David’s leadership characteristics are in line with a “Transformational Leadership” approach. He earned the respect and support of Emper Corp. manufacturing workers through his sensitivity and caring approach, ensuring high productivity. Like other transformational leaders, David exhibits high levels of honesty and empathy, as well as emotional intelligence.
Does David Have Any Alternatives Other than Implementing Stan’s Orders?
In my opinion, no, David has no choice but to carry out Stan’s instruction because the order came from the company’s corporate top management, and he is obligated to do so even if it annoys him and his employees. Therefore, he can describe the changes occurring and educate as many employees as possible to reintegrate into the plants once the automation is complete. This will be advantageous in this case because some employees will be retained.
Consequences of Stan’s Decision That Might Harm the Company
Even if automation increases productivity, it will harm the company’s reputation and goodwill in the community in the long run. Employees may lose faith in the company, resulting in significant attrition in the future. Despite having read Jane’s analysis, Stan says top management has already made a decision. As a result, Jane will have to adjust her accounting analysis to comply with Stan’s directive. David must inform his employees to retain faith in his leadership and ensure that they receive training to keep some after the automation installation.