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The purpose of the study is to examine conceptual similarities of transformational and servant leadership theories and analyze the contribution both theories make to the understanding of leadership. The paper examines the extent the domains of the two theories overlap, and looks at the motivation of managers to create organizational cultures using one or the other perspectives. It is suggested that servant leadership leads to a spiritual generative culture, while transformational leadership leads to an empowered dynamic culture. The paper also addresses contextual factors which might make one or the other models more appropriate for organizational objectives. It is suggested that high change environments require the empowered dynamic culture of transformational leadership, while more static environments are better served by the servant leadership culture.
For the last twenty years, the topic of leadership has become popular among scholars. Considerable research on this topic has appeared in the literature (Avolio & Yammarino, 2002; Dansereau & Yammarino, 1998). However, there is still no comprehensive understanding of what leadership is, nor is there an agreement among different theorists on what good or effective leadership should be. The most popular leadership theories currently being discussed by researchers include charismatic, transactional, transformational and servant leadership.
Charismatic leadership is based on extraordinary characteristics of a leader who inspires and directs followers by building their commitment to a shared vision and values (Hellriegel, Slocum, Woodman, 2001; Conger & Kanungo, 1998). Many current theories of leadership attempt to address some components of the charismatic construct.
Transactional leadership is a process of social exchange between followers and leaders that involves a number of reward-based transactions. The transactional leader clarifies performance expectations, goals, and a path that will link achievement of the goals to rewards. The leader also monitors followers' performance and takes corrective actions when necessary (Burns, 1978; Graen & Cashman, 1975; Graen & Scandura, 1987; Hollander, 1993; Yukl, 1994; Bass, 1996).
Transformational leadership occurs when a leader inspires followers to share a vision, empowering them to achieve the vision, and provides the resource necessary for developing their personal potential. Transformational leaders serve as role models, support optimism and mobilize commitment, as well as focus on the followers' needs for growth (Bass, 1996; Bass & Avolio, 1988, 1994a, 1994b).
Servant leadership views a...