Good leadership skill is necessary for enabling the implementation of organizational change to work efficiently. (Ch. 11. p. 240 – 241) In general, effective leadership skills can make a big difference in a business organization. Considering that it could enhance the business operations, a company could also reduce the unnecessary internal conflicts among the stakeholders which could hinder the success of the desired organizational change. In order to avoid wasting time, money, and effort in going through the consequences of organizational change failure, it is necessary to elaborate on the differences between transformational and transactional leadership styles.An effective leadership style contributes to increasing morale to both the leaders and his/her subordinates. Creating a peaceful working environment with the use of either one of these leadership styles could enhance the progress of implementing a specific organizational change. In general, the application of the Transformational leadership style is more beneficial in the implementation of a discontinued change process in a business organization rather than the use of a transactional leadership style. (Ch.9. pp. 201 – 203) On the other hand, the Transactional leadership style is more effective when applied for a continuous organizational change process.Particularly the Transformational leadership style has four components: charisma or idealized influence, inspirational motivation, intellectual stimulation, and individual consideration. (Ch. 11. p. 243) Once guided efficiently by the transformational leaders, the members of the team would instinctively adopt the organizational change on their own. Transformational leaders tend to go beyond what is happening around their environment since they have the ability to implement new ideas all the time. (Johannsen, 2004) Often times, these people are flexible with the changes that may occur within the business organization and could easily adapt to the implementation of a new strategic plan to improve the business situation.
Organization Change Theory and Practice