ACCA Strategic Professional · Strategic Business Leader · Leadership and organisational culture
Brandt Retail's new chief executive has articulated an inspiring vision of becoming carbon neutral, challenges managers to question existing practices, and coaches individuals to develop their potential. In addition, she rewards staff only when agreed targets are met. Which pairing of leadership approaches does her behaviour best show?
Her behaviour shows transformational leadership with a transactional element. Setting an inspiring vision, challenging assumptions and developing individuals are transformational, while rewarding staff only when targets are met is contingent reward, which is transactional. It is therefore not purely transactional.
- ATransformational leadership with a transactional elementCorrect
- BPurely transactional leadership
- CLaissez-faire leadership with a charismatic element
- DAutocratic leadership with a transactional element
Explanation
Articulating a vision, intellectual challenge and individual coaching are hallmarks of transformational leadership. Rewarding staff for meeting agreed targets is contingent reward, which is transactional. So the behaviour is mainly transformational with a transactional element; it is not purely transactional because of the vision and development elements.
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