NAME: PAMEILA REENA ARUMUGAM SID NB: 1742083 MOD001120: ORGANIZATIONAL BEHAVIOUR TITLE: Leadership Behaviour And How It Influence Motivation Of Individuals In An Organization 1.0 INTRODUCTION Leadership styles and individual motivation are the two most important factors that influences the outcome of performances by any individual of a particular organization. Many existing theories explains the way an individual should work and what is required to emerge as outstanding employee or employer. Motivation determines the success of an organization as it guarantees allegiance and dedication by employees to their employers. A competent leader has the ability to motivate the employees from the time the employee is hired till he/she leaves the organization. (Lussier 2013). The bond between a managers with employees is a powerful tool to create a positive and professional environment among peers. Job satisfaction depends on the leadership style practiced. These influences can be naturally obtained or consciously incorporated from the environment (Gary 1996). The motive of this paper is to elaborate the noteworthiness on how leadership influences the motivation of individuals. 2.0 INFLUENTIAL LEADERSHIP AND MOTIVATION High levels of individual and organizational performance are usually related to transformational and transactional (Kark & Dijk 2007). A competent leader is capable of motivating his/her subordinates to move forward in reaching the goals by identifying and using styles which best suits the nature of the follower and type of organization. Just like in any other relationship, incompatible practices and opinions will give rise to failure. Wrong styles of leadership demotivates the employee. Entrusting a newly untrained employee with responsibilities without supervision or motivation frustrates both employer and employee. Before accusing an employee for lack of motivation, a leader should always think whether he/she is the root cause of the problem. In transformational leadership which is a type of participative style, whereby the prime concerns of employees are taken into consideration by employers. This motivates employers to perform better than required (Yuki, 1999). In this type of leadership, employees are inspired to give their best beyond their own interests for the well-being of the establishment (Yuki, 1999). This style speculates that followers behaves exactly as their leader and accepts the merits exhibited by the pioneer (Jung & Avolio, 2000). Achievement of a leader is attained by motivating the staff to be more enthusiastic in accepting challenges unlike the transactional leaders (Bass & Avolio, 1994). In transformational leadership, a leader is transparent to the followers regarding the problems in the organization and what is expected out of them (Lussier, 2013). An eloquent leader is skilful enough to improvise an ailing organization by sharing the new vision. In order to build faith leaders use emotional participation (Jung and Avolio, 2000). On the other hand, transactional leadership is more like a barter trade between the employer and the subordinates. Rewards and punishments are used to motivate as it has a direct link with the desires of the follower (Judge& Piccolo, 2004). Management by exception – passive has a negative effect with motivation (Judge& Piccolo, 2004) whereas management by exception – active and passive are linked negatively as rewards are provided to motivate. Active management is seen as either effective or ineffective form of transactional leadership. Rewards and punishments have positive relation with motivation. Management by exception – passive relates negatively. Employees who work only to be rewarded or to escape punishment, works just for temporary gains. There is no room for improvement to climb the ladder of success. When a leader is seen to be materialistic, the subordinates follows suit. No importance is given to the gains of the organization as personal gains is the sole reason of employment. Creation and involvement is focused by a transformational leader who builds confidence among the workers to motivate. It not only strengthens the bond of employers with employees but also among peers and collegues. Cognitive stimulation and personality development needs to be the focal point in order to increase the motivation level among subordinates (Webb, 2007). It can be deduced that element of transformational leadership-style will have a constructive connection with motivation. To conclude, by-product of transformational leadership will have favourable tie-up with motivation (Judge& Piccolo, 2004). Transformational leadership focuses on leaders with extraordinary impacts on the staff and system itself by sacrificing personal gains (Shamir, House and Arthur, 1993). Leaders who are selfless are viewed as heroes and ends up setting examples for the subordinates. An exceptional leader not only progresses in his own career pathway but also encourages the followers to achieve their goals. 3.0 CONCLUSION Two styles of leaderships and their distinct features were identified that is transformational and transactional leadership. Transactional leadership is used as a barter exchange by the employers and employees where recognition and penalty is used in return for commitment to an organization. Transformational leadership on the other hand is more worried with the fate and requirements of the organisation. At the same time, looks into the needs and expectations of the subordinates. 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