PHASE 1: TRANSACTIONAL LEADER
1. THE TRANSACTIONAL LEADERSHIP STYLE
Competitive value framework: internal process model – rule culture (internal focus and
stability and control)
Strong influence of Max Weber and Henri Fayol
Leaders need to pursue stability and continuity
Organisation operated according to three top-down and hierarchical principles of
the professional bureaucracy
Leaders had to be technical competent and reliable and were experts in designing,
coordinating and monitoring work
Leaders strived for optimal planning and division of labour by threatening their
employees fairly and equitably
McDonaldization: the process by which principles of fast food restaurant are coming to
dominate more and more sectors of society as well as the rest of the world.
Efficiency: perform a task in the fastest way
Calculability: the emphasis is on the quantitative by expressing everything in
figures
Predictability: uniformity and standards for service and production
Control: technology and machines control the simple and routine work of
employees
Danger: red tape: too much focus on rules and procedures, which blocks the
employees from working and innovating
Example of a typical transactional leader: Bill Gates (provides structure and communicate
clear expectations)
2. MECHANISM OF JUSTICE
The transactional leader can have an impact/effect on wellbeing and performance of
employees through mechanisms of justice.
Research shows that
Justice/fairness is linked to happiness (i.e. wages versus meaningful jobs)
Low fairness -> lower efficiency and productivity
Perception of fairness is also important (3 types of perceived fairness)
, o Procedural justice: The fairness of the processes that lead to outcome
(i.e. the way in which decisions are made).
o Distributive justice: The fairness associated with decision outcomes and
distribution of resources. The outcomes or resources distributed may be
tangible (e.g., pay) or intangible (e.g., praise).
Equity Theory of Adams: input-output ratio
input-output ratio (balans input energy/efforts and the result)
Employees compare themselves with their colleagues in
function of compensation/benefits and input balance
(example salary)
If the ratio is considered as unfair, they take conclusions and
action (working less, asking for increase in salary, or leaving
the organization)
o Interactional justice: The treatment that an individual receives as
decisions are made and can be promoted by providing explanations for
decisions and delivering the news with sensitivity and respect.
Informational justice: explain regulations and systems to
employees, need for information, availability of information
concerning rules and procedures
Interrelational/interpersonal justice: treat people respectful, equal,...
The Golden Rule: Treat others how you want to be treated
Procedural justice has strongest link with job performance.
Distributive and procedural justice have an average to strong link with job
satisfaction, commitment, and performance.
Interactional justice is linked with satisfaction with leader
o Employees are less satisfied if their job expectations are high compared to
those of their manager
Fair process effect: relevant to look at the interaction of the three forms of justice
o Unpopular outcomes (distributive) have advantage of a fair process
(procedural and interactional)
o Important that you communicate
3. RELEVANCE CLASSICAL BOSS IN 21STE CENTURY?
3.1. ATTENTION TO DIVERSITY
Study McKinsey & Co:
Top 25% companies on racial and ethnic diversity have 30% more chance to have
better financial results than the national average of their industry
More innovation, higher chance of attracting talented people (<-> war for talent)
Case: James Damore at Google
Gender gap:
Today: 32.0% average gender gap that remains to be closed
Political leadership: 18% of ministers and 24% of parliamentarians globally
are women.
Economic leadership: women hold just 34% of managerial positions.
1. THE TRANSACTIONAL LEADERSHIP STYLE
Competitive value framework: internal process model – rule culture (internal focus and
stability and control)
Strong influence of Max Weber and Henri Fayol
Leaders need to pursue stability and continuity
Organisation operated according to three top-down and hierarchical principles of
the professional bureaucracy
Leaders had to be technical competent and reliable and were experts in designing,
coordinating and monitoring work
Leaders strived for optimal planning and division of labour by threatening their
employees fairly and equitably
McDonaldization: the process by which principles of fast food restaurant are coming to
dominate more and more sectors of society as well as the rest of the world.
Efficiency: perform a task in the fastest way
Calculability: the emphasis is on the quantitative by expressing everything in
figures
Predictability: uniformity and standards for service and production
Control: technology and machines control the simple and routine work of
employees
Danger: red tape: too much focus on rules and procedures, which blocks the
employees from working and innovating
Example of a typical transactional leader: Bill Gates (provides structure and communicate
clear expectations)
2. MECHANISM OF JUSTICE
The transactional leader can have an impact/effect on wellbeing and performance of
employees through mechanisms of justice.
Research shows that
Justice/fairness is linked to happiness (i.e. wages versus meaningful jobs)
Low fairness -> lower efficiency and productivity
Perception of fairness is also important (3 types of perceived fairness)
, o Procedural justice: The fairness of the processes that lead to outcome
(i.e. the way in which decisions are made).
o Distributive justice: The fairness associated with decision outcomes and
distribution of resources. The outcomes or resources distributed may be
tangible (e.g., pay) or intangible (e.g., praise).
Equity Theory of Adams: input-output ratio
input-output ratio (balans input energy/efforts and the result)
Employees compare themselves with their colleagues in
function of compensation/benefits and input balance
(example salary)
If the ratio is considered as unfair, they take conclusions and
action (working less, asking for increase in salary, or leaving
the organization)
o Interactional justice: The treatment that an individual receives as
decisions are made and can be promoted by providing explanations for
decisions and delivering the news with sensitivity and respect.
Informational justice: explain regulations and systems to
employees, need for information, availability of information
concerning rules and procedures
Interrelational/interpersonal justice: treat people respectful, equal,...
The Golden Rule: Treat others how you want to be treated
Procedural justice has strongest link with job performance.
Distributive and procedural justice have an average to strong link with job
satisfaction, commitment, and performance.
Interactional justice is linked with satisfaction with leader
o Employees are less satisfied if their job expectations are high compared to
those of their manager
Fair process effect: relevant to look at the interaction of the three forms of justice
o Unpopular outcomes (distributive) have advantage of a fair process
(procedural and interactional)
o Important that you communicate
3. RELEVANCE CLASSICAL BOSS IN 21STE CENTURY?
3.1. ATTENTION TO DIVERSITY
Study McKinsey & Co:
Top 25% companies on racial and ethnic diversity have 30% more chance to have
better financial results than the national average of their industry
More innovation, higher chance of attracting talented people (<-> war for talent)
Case: James Damore at Google
Gender gap:
Today: 32.0% average gender gap that remains to be closed
Political leadership: 18% of ministers and 24% of parliamentarians globally
are women.
Economic leadership: women hold just 34% of managerial positions.
