Week 2- Theories in Action: Transactional vs Transformational ldsp

Due to the massive size of General Motors, it is very interesting to see how leadership is viewed at each level of the corporate hierarchy. At the very top is the CEO, Mary Barra, who is in every sense of the term, a transformational leader. Her followers describe her as innovative, charismatic, empathetic and visionary- all traits that we discussed in Theories and Models. Since the company’s rough patch in 2014, Barra has managed to transform not on the company’s reputation, but the spirit of its employees as well. People believe in her to the point where they will literally do whatever she says, almost like the hypnosis that Freud discusses. Barra is an incredible leader who puts herself at the same level as her employees, making them feel valued and as though their dedication truly matters to the company. At the lower levels of leadership, however, it seems that a more transactional approach is taken by team leaders. The size of the company allows for a great deal of competition among employees. This competition is not necessarily a bad thing, but more of a reality that forces people to work harder to move up in the rankings. At these lower levels of leadership, it seems as though people are not only working toward the common good of the company, but they are working to excel in their department and receive favorable reviews from their leader. The leader, in turn, provides these employees with more opportunities that will allow their resume to flourish  and give them a greater chance of moving up the corporate ladder. It is very interesting to see how the different styles of leadership can present such staunch differences in the way that employees act. In the case of Barra’s transformational leadership, employees are wholly devoted to the cause and mission of the leader. In the lower levels, employees are motivated by their hope to gain something from their leader.