ACCA Applied Knowledge · Business and Technology · Leadership, management and supervision
Which statement best describes transformational leadership, as distinct from transactional leadership?
Transformational leadership means inspiring followers with a compelling vision so they look beyond self-interest and support change. Transactional leaders instead exchange rewards for performance, and laissez-faire leaders give freedom without guidance, so those descriptions do not define transformational leadership.
- AThe leader inspires followers with a vision to go beyond self-interest and drive changeCorrect
- BThe leader rewards followers for meeting agreed targets and penalises failure
- CThe leader relies on formal position and rules to maintain the existing system
- DThe leader allows followers complete freedom to decide without guidance
Explanation
Transformational leaders use vision, charisma and inspiration to change attitudes and achieve change. Rewarding targets and punishing failure describes transactional leadership, rule reliance is bureaucratic maintenance, and total freedom is laissez-faire.
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