This investigation examined the practices of transformational and transactional leadership in a management simulation game that spanned a 3-month period. Transformational and transactional leadership were measured by using Bass's (1985) Multifactor Leadership Questionnaire (Form 4). Participants were second-year, part- time and full-time MBA students who worked in teams, each composed of seven to nine members. Each team represented the senior management of a hypothetical manufacturing organization. Data were collected from 27 teams on the perceived leadership of team presidents and the financial performance of their respective teams. Financial performance was based on five traditional indicators of organi zational effectiveness,that is, market share, stock price, earnings per share, return on assets, and debt-to-equity ratio. Analyses of leadership data collected independently of financial performance demonstrated significant and positive relationships be tween active transactional leadership, transformational leadership, and organi zational effectiveness.
The extent to which transactional and transformational leadership practices are related to the attitudinal and rated performance outcomes of a performance appraisal process was examined in this study involving 256 managers in a large business organization. Results indicated that only aspects of transformational leadership were related to performance appraisal scores. However, the contingent reward factor of transactional leadership, as well as all factors of transformational leadership, were related to satisfaction with performance appraisal processes. Management‐by‐exception was associated with lower satisfaction. Conclusions were drawn regarding the need for active transactional and transformational leadership in the performance appraisal process.
PurposeThe purpose of this paper is to show how the Balanced Scorecard approach, a performance management system, could be implemented at a college of business.Design/methodology/approachThe authors' own college of business is used as an example, to present how a successful Balanced Scorecard would look.Practical implicationsA comprehensive guide for implementation of the Balanced Scorecard approach is presented, including presentation of specific objectives and measures appropriate for a college of business.Originality/valueThe paper points out that the Balanced Scorecard approach is well suited to a higher education situation and allows the alignment of a wide variety of measures with the unique mission and strategy of a college of business.
Transformational leadership theory is a relatively recent entrant into the realm of management thought. In fact, the majority of this literature has been published in the past 15 years. That being said, the ideas that are central to transformational leadership are not necessarily new. Many of these constructs can be found in the writings of earlier management theorists. The literature indicates that transformational leadership can positively impact on organizational outcomes and employee satisfaction. Without an understanding of its historical roots, however, transformational leadership risks becoming nothing more than the latest “buzzword” for enhancing organizational performance. To fully understand and appreciate the paradigm, one must trace the development of the transformational factors from a historical perspective.
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