See the Answer is the explanation
Explanation:
Introduction
Leadership is a critical factor in shaping employee performance, motivation, and overall organizational success. In procurement, managers must adopt a leadership style that aligns with their team's capabilities, business objectives, and operational challenges. Two widely recognized leadership styles are Transformational Leadership and Transactional Leadership, each with distinct characteristics and effects on team performance.
This essay will discuss both leadership styles, outlining their advantages and disadvantages. It will then evaluate which approach is best suited for Mo, a procurement manager facing skill and confidence issues among his team members.
Understanding Transformational Leadership
Definition
Transformational leadership is a leadership style that focuses on inspiring, motivating, and developing employees to reach their full potential. Transformational leaders act as mentors and role models, encouraging innovation, professional growth, and long-term performance improvements.
Key Characteristics of Transformational Leadership
Inspiration and Motivation - The leader encourages employees to perform beyond expectations through a compelling vision.
Individualized Support - Focuses on mentoring and coaching employees to enhance their skills.
Encourages Innovation - Employees are empowered to think creatively and solve problems.
Develops Future Leaders - Focuses on long-term talent development rather than short-term task completion.
High Engagement and Emotional Intelligence - Builds strong relationships with employees and fosters a positive workplace culture.
Advantages of Transformational Leadership
✅ Encourages professional growth - Employees develop new skills and gain confidence.
✅ Increases motivation and job satisfaction - Employees feel valued and supported.
✅ Promotes innovation and continuous improvement - Encourages employees to think creatively.
✅ Builds long-term organizational success - Creates future leaders through mentoring and skill development.
Disadvantages of Transformational Leadership
❌ Time-consuming - Requires significant time and effort for mentoring and development.
❌ Not suitable for urgent performance issues - If immediate performance improvement is needed, transformational leadership may be too slow.
❌ Employees may resist change - Some employees may be unwilling to embrace coaching and new expectations.
Understanding Transactional Leadership
Definition
Transactional leadership is a leadership style based on a structured, performance-driven approach. It focuses on clear expectations, rewards for success, and consequences for underperformance. This style is best suited for improving task efficiency, enforcing compliance, and ensuring consistency.
Key Characteristics of Transactional Leadership
Clear Expectations and Rules - Employees have defined roles and responsibilities.
Performance-Based Rewards and Punishments - Good performance is rewarded, while poor performance is corrected through disciplinary actions.
Focus on Efficiency and Results - Emphasizes productivity and operational efficiency over employee growth.
Short-Term Performance Goals - Ensures immediate improvements in employee performance.
Hierarchy and Structure - Follows a strict chain of command.
Advantages of Transactional Leadership
✅ Ensures short-term efficiency and compliance - Clearly defines expectations, which leads to immediate improvements in performance.
✅ Effective for structured tasks - Employees know exactly what is expected, reducing uncertainty.
✅ Increases accountability - Employees are held responsible for meeting targets.
✅ Useful for crisis management - Provides a clear directive in high-pressure situations.
Disadvantages of Transactional Leadership
❌ Limited employee development - Focuses more on task completion rather than skill enhancement.
❌ Can reduce creativity and innovation - Employees may feel restricted by rigid expectations.
❌ May reduce motivation - Over-reliance on rules and punishments can create a negative work environment.
❌ Not ideal for building long-term talent - Employees may not develop leadership skills or confidence.
Which Leadership Style is Most Suitable for Mo?
Case Study Analysis: Mo's Leadership Challenge
Mo is a procurement manager leading a team of 5 procurement assistants.
The assistants are underperforming due to lack of skills and confidence.
Mo is concerned about their ability to complete procurement tenders accurately.
Evaluating the Best Leadership Approach for Mo

Based on the specific challenges Mo is facing, neither leadership style alone is perfect. Instead, a combined approach is most suitable:
Recommended Approach: A Blend of Transformational and Transactional Leadership Short-Term Approach: Transactional Leadership for Immediate Performance Improvement Mo should set clear expectations and enforce accountability to ensure the assistants improve their performance in procurement tenders.
Implement a structured training program with performance benchmarks.
Use performance-based incentives (e.g., bonuses, recognition for accurate work).
Provide constructive feedback on mistakes to encourage learning.
Long-Term Approach: Transformational Leadership for Skill Development and Confidence Mo should act as a mentor and coach, providing continuous learning opportunities.
Encourage assistants to develop confidence in procurement by assigning them progressively challenging tasks.
Inspire the team by highlighting the importance of procurement excellence in achieving organizational goals.
Implement peer learning and mentorship programs to create a supportive learning environment.
Conclusion
Both Transformational Leadership and Transactional Leadership offer valuable benefits, but in the case of Mo's underperforming team, a blended approach is the most effective strategy.
Transactional Leadership should be used in the short term to improve immediate performance, enforce accountability, and ensure accuracy in procurement tenders.
Transformational Leadership should be introduced gradually to develop skills, boost confidence, and foster long-term career growth among the procurement assistants.
By combining both approaches, Mo can quickly improve his team's performance while ensuring they gain the necessary skills and confidence to succeed in procurement. This balanced leadership approach ensures short-term efficiency and long-term growth, making it the most effective strategy for Mo's situation.