Introduction
Many business
organizations today focus on promoting its position in the market by improving
the organizational performance through the improved performance of human
resources and this can be well managed through the proper application of the
different leadership styles and the right employing for each leadership style
in the different organizational business situations. Leadership helps business
organizations to be more profitable and productive as success levels depend on
how leaders apply different leadership styles in addition to the resultant
environment leaders create
Different leadership styles
Transactional leadership
Many
studies and researches that investigated the effect of leadership on employees'
performance showed that there are certain leadership styles that can cause
effective results with employees and raise or reduce the level of human
resources performance; Flood et al, (2008) referred to the transactional
leadership style and how it can improve the human resources performance as it
is based upon the exchange model which focuses mainly on rewarding the good
behaviors and actions of employees and punishing the wrong behaviors acted by
employees or the employees with poor performance; it also focuses on the
relational dimensions of the different leadership behaviors. Ling,
Jen and Wang, (2010) discussed how human resources management strategies can
identify the effect of leadership styles on the organizational performance and
how leaders can choose the suitable leadership style to suit different
organizational situations as charismatic leadership is that wise leadership
that can employ the different leadership styles each in its position.
Transformational leadership
According to Saleem, (2015);
transformational leadership is said to leave a great impact on attitudes of
employees within the organization and it is usually preferred in many job
situations rather than transactional leadership, it is associated with high employees'
performance due to the amount of freedom and communication it ensures for human
resources via leaders who are able to build a successful leader follower
relationship that ensures a deep understanding for employees' needs by their
leaders who are able to raise employees' morale and make them job satisfied.
Bass and Riggio, (2006) also discussed the positive impact transformational
leadership leaves on the performance of the company's human resources and
referred to the different techniques used by a transformational leader to raise
the employees morale in order to get better performance such as rewards,
recognition, engaging employees in decision making processes and ensuring their
rights in promotion and taking leadership roles. This was confirmed by Avolio
and Yammarino, (2013) who reported that many business organizations try to
apply transformational leadership to apply changes, reach competitive advantage
and push their human resources towards high working performance.
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