Transactional vs. Transformational Leadership

Based on class discussions and readings, transactional and transformational leadership are very different, yet it is extremely important to have both in a business. Transactional leadership, also known as managerial leadership, focuses on supervision, organization, and performance. It is a style of leadership in which leaders promote compliance by followers through both rewards and punishments. They are concerned about the status quo and day-to-day progress toward goals. Transformational leadership is a style of leadership where a leader works with subordinates to identify needed change(s), creates a vision to inspire and guide change, and executes the These types of leaders work to enhance the motivation and engagement of followers by directing their behavior toward a shared vision.

A great example of a transformational leader is Arne Sorenson, CEO of Marriott International. I believe he is a transformational leader for several reasons, but most importantly his ability to change for the better, and adapt his ways and company's to be the best there is. Since becoming CEO in 2012, Mr. Sorenson has been a part of some of the greatest acquisitions in the hospitality industry (Gaylord Hotels and Starwood Hotels & Resorts to name a few). The reason I bring these up is because he led the charge for the acquisitions. He created, shared, and inspired others through his vision for how these acquisitions could benefit the company positively. When Mr. Sorenson joined Marriott in 1996, and for the majority of his career with them, they were known as a "cookie cutter" company. This is not necessarily a bad thing, but in our current time of fast-paced change, sometimes those types of companies can fall behind. The acquisition of Starwood, in my opinion, is one of the greatest examples of Arne's transformational leadership style. Starwood, being known as a company willing to take risks, challenge the status quo, and upbeat is polar opposites to how Marriott used to be. With Arne leading the charge for the acquisition, he was able to share a vision that basically said Starwood may be different, may not be our typical style of business, but is something we need to take advantage of to stay on top in a industry that changes faster than anything else. As of now, this acquisition has only proven successful for their company all around.