Leading a postmodern workforce.
Green, Daryl D.
ABSTRACT
This paper explores contemporary leadership theory within a
postmodernism society in the public sector. The paper investigates
leadership theory by comparing and contrasting bureaucratic theory,
transactional leadership theory, and transformational leadership theory
in the ever changing workforce of federal employees. The study is
significant because there are government-wide human capital problems,
and this is highly relevant to anyone who must lead in the public
sector. The paper concludes with a set of five strategic implications
for researchers and practitioners. This effort contributes to further
exploration into understanding leadership and organizational culture in
the public sector.
INTRODUCTION
With sixty percent (60%) of the government's 1.6 million
employees eligible for retirement, the federal government finds itself
in a hostile environment. The changes in workforce demographics will
create leadership challenges in the future as Baby Boomer employees make
their massive exodus from the workforce. For complementary leaders,
there is a caution sign that reads, "Proceed cautiously, danger
ahead." Currently, the government has declared its human capital
practices as a "high risk" area of concern (Blunt, 2003).
Linda Springer, the Office of Personnel Management (OPM) Director, calls
this issue a retirement tsunami and feels managers need to start taking
this cultural shift seriously (Ziegler, 2006). In the past, corporate
culture has been able to stabilize such influences; corporate culture
gives employees a blueprint for understanding organizational values and
beliefs. What happens to an organization when the leader's values
are no longer aligned to the belief system of the employees? Reacting to
changing cultural influences and global threats abroad, the federal
government finds itself in a major transformation process (Blunt, 2003).
These situations are made more complicated due to the massive exodus of
its leaders. The leadership training for senior executives has been
sparse and inadequate in relationship to these culture changes.
The purpose of this article is to provide an exploratory insight
related to leadership theory and its application in the postmodern era.
This paper examines several aspects of leadership theory consisting of
bureaucratic theory, transactional leadership theory, and
transformational leadership theory in the public sector. The primary
objective is to identify the current values attributed to contemporary
leadership and compare varying leadership theories in the postmodern
period. The following discussion will be investigated: (a) the current
organizational changes, (b) the postmodern culture and its impact upon
the workforce, and (c) understanding leadership theory in the postmodern
period. These issues are significant because of the potential conflicts
that can exist between leaders and employees in organizations.
CONTEMPORARY LEADERSHIP THEORY
Leadership Theory provides researchers an opportunity to understand
leader-follower relationships in a cultural framework. Prewitt (2004)
noted that the current leadership theories are based on modernist
assumptions and are out of date with leading postmodern organizations.
Schmidt (2006) argued that leadership definitions reflect the viewpoint
of an industrial society, and a new era begat a new definition for
leadership. Nevertheless, this paper defines leadership as a contextual
influence that has an impact on subordinates' attitudes and
performance through effects on the subordinates' perceptions of
their job characteristics (Northouse, 2004). Therefore, leaders have the
capacity to influence the values needed in a changing organizational
environment (Ferguson, 2003).
POSTMODERN CULTURE
Postmodernism is a philosophical term with a cultural context.
Modernism places man at the center of reality by utilizing science to
explain the meaning of life. In contrast, postmodernism places no one at
the center of reality and has no core explanation of life (Kelm, 1999).
Ingraffia (1995) figuratively described modernism as an attempt to
elevate man into God's place while postmodernism seeks to destroy
the very place and attributes of God. Some of the key themes of
postmodernism include (a) Pluralism, which means the denial of any one
universal truth; (b) Non-objectivism, which conveys that all facts are
not hard facts and science has limited application; (c) Deconstruction,
which teaches that meaning is through the interpreter rather than the
text or object interpreted; (d) Cynicism/pessimism, which promotes the
absence of absolute truth, no universal purpose in life, and no
possibility of arriving at certain knowledge of anything; and (e)
Community, which advocates meaning and understanding determined through
a tribal or community setting (Kelm, 1999). Therefore, postmodernism
provides a conceptual threat to traditional organizations.
METHODOLOGY
This investigation provides exploratory data by utilizing an
extensive literary review of over 20 documents including scholarly
opinions and practitioner discussions. The contributions made by
well-known researchers in the fields of postmodernism and leadership
theory, such as Bass and Yukl, were investigated. The primary objective
of this review of literature is to increase depth of knowledge in this
field in order to make a relevant analysis of each theory. Electronic
databases such as EBSCO Host and the Internet were searched using key
words 'leadership theories,' bureaucracy,'
'transactional leadership,' 'transformational
leadership,' 'organizational values,' 'corporate
culture,' and 'postmodernism.' There was a significant
absence of literature related to leadership theories as it relates to
postmodernism. Through this process, there is an opportunity to discover
the gaps in research.
DISCUSSION AND ANALYSIS
Amoeba-like Organizational Change
The enormous demographic changes within the 21st century American
workforce are creating organizational growth pains. For the first time
in American history, there will be four generations co-existing in the
workplace (Hankin, 2005). With global competition, a tightening of
corporate budget, and threats of outsourcing core organizational
functions, leaders can not afford to manage in the traditional fashion.
Currently, there is considerable buzz among practitioners and academics
on the role of leadership theory and organizational culture in
organizational performance. Harding (2000) explained that a new
generation of workers will produce significant human resource problems
for traditional organizations. He described this new generation as the
Emergent Workforce, which crosses age groups, gender, race, and
geography (Harding, 2000). This new set of workers is driven by a new
set of values and job expectations. For example, Emergent employees are
viewed as job hoppers. In one study, Emergent employees (88%) believed
that loyalty was not related to employment length while Traditional
employees (94%) viewed loyalty as the willingness to stay with an
employer for the long term (Harding, 2000).
Another key value shift among generations is their priorities.
While Baby Boomer males and previous generations were more work-focused,
Generation X and Y employees are more family-focused. Younger
generations are also less accepting of traditional gender roles than
previous generations (Harding, 2000). This Emergent Workforce also seeks
a more spiritual workplace that emphasizes personal integrity and
accountability (Hankin, 2005). Clearly, these differences in value
systems create communication barriers and can result in an unproductive
organization (Washington, 2002). Thus, the Emergent Workforce becomes
more complicated to manage because its members are often motivated by
different leadership styles as shown in Table 1 (Hackman & Johnson,
2004).
A Clash of Cultural Values
As organizations continue to replace employees under this changing
environment, traditional organizational values will be challenged by
postmodern values. Economic, social, and political influences have
impacted the value system of today's workforce (Wren, 1994).
Organizations communicate their expectations both formally and
informally through their corporate culture. Scholars call this
environment organizational culture. In most businesses, organizational
culture has been a domain where institutions try to promote the values
of a more efficient and effective organization. Schultz (1992) argued,
however, that postmodernism challenges the very assumptions of the
merits of corporate culture. First, postmodernism questions the
assumption of the goodness of such corporate values. It transforms these
corporate icons into hollow rituals (Schultz, 1992). Second,
postmodernism questions corporate culture as an effective tool for
organizational identity. Postmodern advocates view corporate culture as
producing carbon copies of the same culture in different organizations;
this situation effaces the last remains of the organizational
originality (Schultz, 1992). Lastly, postmodernism rejects the premise
that corporate values can regulate employee behaviors through meaningful
events and internalized knowledge. It replaces this organization
assumption with the seductiveness of corporate culture to act through
aesthetics, renewal, and modern illusions (Schultz, 1992).
These postmodernism premises attack the heart of traditional
organizations and thus, provide an avenue for organizational conflict
between leaders and followers. Malphurs (2004) explained that
organizational values co-exist on two levels, personal and corporate. On
a personal level, individuals in general have a set of core values that
dictate how they respond to a situation. At the corporate level, every
organization has a set of core values that guides the organization while
it does business. Organizational values are a key component of its
character and signal to followers the organization's bottom-line
(Malphurs, 2004). Conversely, an individual's value system will
help determine a person's involvement in an organization or a
cause. A well-informed employee who understands his own value should
align himself with a similar minded organization (Malphurs, 2004).
However, the problem arises when the employee's values do not align
with the organization. Hackman and Johnson (2004) explained that leaders
and followers are also interrelated. For example, Admiral Gunn has very
liberal opinions on social issues more than his fellow officers.
However, Admiral Gunn must promote the organizational values of the Navy
with which he may personally disagree. How does Admiral Gunn promote
corporate values to his followers in which he does not believe?
At this moment in time, an organizational conflict is brewing.
Today, many organizations operate under a modern cultural cloud while
the vast majority of new employees operate in a postmodern culture.
Leaders exert a great amount of influence in guiding their followers
although followers are more involved in implementing the organizational
objectives. A leader's behavior is also influenced by cultural
values and tradition (Yukl, 2002). Organ and Bateman (1991) suggested
that the existence of a hierarchy, competition, and constraints on
behavior guarantee that frustration will be frequent in an organization.
Malphurs (2004) maintained that congruent values are the answer to these
value conflicts. In mixing modern and postmodern values in
organizations, incongruent values are generated (Malphurs, 2004).
Therefore, there will be conflicting values held by the modern
organization and the competing values espoused by the Emergent Workforce
in the postmodern period. This creates chaos (Malphurs, 2004). For
example, postmodernism is multicultural and promotes social tolerance.
The media heavily bombards today's workforce with these
impressions. The casual observer may not observe anything from these
media influences; however, organizational leaders can not afford to
underestimate these culture changes. Postmodern influences are clearly
seen in urban subculture where its followers are characterized by (a)
questioning everything, (b) viewing truth as relative, (c)valuing
relationships over institutions, (d) valuing the ability of
storytelling, and (e) demonstrating of emotion and experience (Smith
& Jackson, 2005). Therefore, organizational leaders will need to be
real, relevant, and respectful to gain credibility with this subculture
(Smith & Jackson, 2005).
Analyzing Leadership Theory in a Culture Quagmire
Applying varying leadership theories in a postmodern workplace
could produce a cultural quagmire for organizations. Malphurs (2004)
argued that a leader's values influence his followers greatly even
though leadership is an amoral process. He further noted that leaders
often mirror the organizational values and shape employee values by
modeling the way (Malphurs, 2004). Kouzes and Posner (1995) argued that
leaders make visions and values meaningful to followers by modeling the
way. Much of the assumption about the leader's values is that it is
a constant; however, leaders as well as organizations go through a
process of value formulation, which may cause a state of flux (Malphurs,
2004). Postmodernism also influences leaders as well as employees,
organizations and leaders take longer for these changes to take place;
therefore, leaders and organizations are relatively fixed (Malphurs,
2004). Hackman and Johnson (2004) argued that leaders find themselves as
negotiators when incompatible interest comes into play and forces
leaders to seek a cooperative climate where both parties can agree.
However, the competing interest of a modern organization and a
postmodern workplace makes this difficult for leaders. Therefore, a new
leadership paradigm in organizations needs to be analyzed under
continual postmodern influences. Schmidt (2006) advocated a new type of
leader in the postmodern age. He describes a leader who understands that
many things can not be analyzed away by science. Schmidt also insisted
that this leader needs principles based on character and integrity where
postmodernism creates a world without rules (Schmidt, 2006, pg.2).
According to Prewitt (2004), current leadership in large bureaucratic
organizations is invalid for a postindustrial society. It is invalid
because it assumes a rational workplace where a bureaucratic structure
is sustainable (Prewitt, 2004). However, in the postmodern age,
organizations are often complex, networked, emotional, and chaotic.
Understanding leadership theory in postmodernism is vital because
leaders are responsible for discovering and articulating the
organization's primary values (Malphurs, 2004). Yukl (2002)
explained that most leadership theories are focused on processes at only
one level because it is difficult to develop a multilevel theory for all
situations. Vickrey (n.d.) argued that communications is critical for
effective leaders and can explain why some leaders are better than their
peers with similar followers. There are concerns, however, about the
power of leaders in organizations to influence the values of followers.
Yukl (2002) explained that scholars worry about the misuse of power and
control over information to bias follower perceptions which could be
perceived as attempting to change the underlying values and beliefs of
followers. Likewise, the Emergent Workforce requires more collaboration,
social intelligence, and worker participation in order to maintain
sustainability. Thus, this investigation analyzes three current
leadership theories that may be found in public organizations and
forecast the impacts of postmodernism influences.
Each theory has it own unique characteristics as shown in Table 2
and 3. First, the leadership theories are Bureaucratic Theory,
Transactional Leadership Theory, and Transformational Leadership Theory.
In the 1900s, Max Weber postulated that a manager's authority in an
organization should be based not on tradition or charisma but on the
position held by managers in the organization hierarchy (Wren, 1994).
Weber's ideas formed the basis of what is known today as
Bureaucracy Theory. In a bureaucratic structure, large organizations
such as governments and religious institutions can control employees by
giving leader legitimate power and standardizing work processes. The
federal government is a form of bureaucracy.
Therefore, many outsiders view organizational leaders as
bureaucrats. This title is not viewed as a positive attribute in
society. The elements of a bureaucracy include: (a) authority and
responsibility clearly identified and legitimatized, (b) hierarchy of
authority producing a chain of command, (c) leaders selected by
technical competency, training, or education, (d) leaders appointed, not
elected, (e) administrative officials work for fixed salaries and have
no ownership of process or organization, (f) Administrators subject to
strict rules for control (Wren, 1994). Although Weber viewed these
attributes as positives during his time, societal changes and economic
pressures have shifted public opinion on the merits of bureaucratic
theory in a postmodern culture. Bureaucratic leaders influence employees
primarily on their legality of authority and the right to issue commands
(Bass, 1990). Clearly, these assumptions maintained by bureaucratic
leaders will create a value crisis for members in a postmodern
workforce.
The process of bureaucracy is often viewed as a cold and heartless process to postmodern employees. For example, a government office
manager may work in an environment where she is not respected or valued
because of her pay grade. She is never given special assignments or
career development activities. She soon grows tired of asking to be
treated fairly and becomes a robot in her job. This is a tragic
situation because this office manager is special. In her private life,
she serves as the chairperson for her local nonprofit organization and
is highly respected in her community because of her leadership
abilities. Unfortunately, the employee's worth is seen through the
len of an impersonal process. Some of the problems with a bureaucracy
include the impersonal rules, absoluteness of leadership in authority,
and the enforcement of standardization and conformity on individualism
(RevisionNotes.Co.Uk, 2001). Organizational leaders need to analyze the
ramification of bringing these postmodern employees into a non-flexible
bureaucracy.
Second, many effective managers still utilize Transactional
Leadership Theory in order to obtain organizational objectives.
Transactional leadership along with transformational leadership was
advocated by Burns, a political sociologist, in order to link the
relationship between leader and follower (Northouse, 2004). In the
Transactional Leadership Theory, leadership involves the exchange of
benefits. While the leader provides a benefit to followers, in exchange
followers comply by achieving the leader's desired outcomes (Jin,
n.d.). The leader-follower relationship is submerged in self-interest.
The followers enjoy the benefit of extrinsic and intrinsic rewards while
the leader obtains status, the privileges of authority, influence,
prestige, or other management benefits (Bass, 1990). Critics argue that
transactional leaders are most concerned with satisfying the physical
needs of the employees and do not want to disrupt the status quo (Hackman & Johnson, 2004). For example, Bill is a survivor of
massive downsizing in his company. Because of this fact, his managers
give Bill plenty of overtime to get the job down. However, Bill is
unhappy because he is doing the work of several people. Bill never does
anything extra from the organization because he feels the company does
not care.
Transactional leadership also depends upon management by exception
and negative feedback; it is an advantage as long as the employee is a
rational and economic being (McAulay, 2003). Therefore, these values do
not align themselves well to the needs of postmodern employees who are
searching for a meaningful existence. Finally, the Transformational
Theory also provides an effective method of exchange between leader and
followers. In contrast to Transactional Leadership Theory,
Transformational Leadership Theory speaks to the higher needs of
employees. Whereas transactional leaders work within the framework of
the self interest of his or her employees, transformational leaders seek
to change the framework (Bass, 1990). A transformational leader will
request employees to transcend their own self interests for the good of
organization and focus on long-term benefits rather than short-term gain
(Bass, 1990). Unlike transactional leadership, transformational
leadership attempts to develop employees in such a manner to reach for
high performance without the carrot of reward or reprimand. Bass argues
that transformational leaders, however, augment some of the attributes
of transactional leaders on the efforts, satisfaction, and effectiveness
of employees (Bass, 1990). Transformational leaders attempt to raise the
consciousness of his followers (Bass, 1990). These attributes work well
with postmodern employees. In spite of this positive outlook,
transformational leadership has its problem with postmodernism. First,
transformational leaders in the federal government still operate in a
bureaucratic system that is highly inflexible. Second, transformational
leaders are social architects of their organizations so that they
promote organizational values and norms to employees (Northouse, 2004).
Some postmodernists would consider this negative since these leaders
often influence and shape employee attitudes for the organization's
benefit. Other scholars argue that transformational leadership is
elitist and antidemocratic (Northouse, 2004). Similar to other theories,
Transformational Leadership Theory has its drawback when applying
postmodern concept. For example, Kelly, a federal executive, created a
charged workplace environment for his employees. The workforce loved his
charismatic ways. However, his fellow managers demonstrate unethical
conduct. While Kelly encourages his employees to have high ethical
behavior, he is silent on his peers. By supporting this corporate
culture, Kelly loses the trust of his postmodern workforce.
Finally, Schmidt (2006) explained that the postmodern leader should
have the following characteristics: (a) adaptable, (b) spiritual-focus,
(c) tolerance for ambiguity in life, (d) entrepreneurial in his
approach, (e) service-oriented, (f) accountable for action, (g)
life-long learners, (h) upgrading performance, and (i) participatory.
Although there are many positive attributes of contemporary leadership
theories, organizational leaders should be cautious with implementing
them in a postmodern framework.
CONCLUSION
Organizational leaders in the public sector will find new
challenges as they begin to replace their present workforce in this
Postmodern Era. The paper demonstrated that there is an impending public
crisis as postmodernism makes its impacts on this traditional framework.
Influences of postmodernism make the Emergent Workforce more cynical and
pessimistic about life. Postmodernism has employees debating on what is
morally right. Therefore, organizational leaders must operate against a
backdrop of postmodernism where followers are untrusting of corporate
culture. Organizational leaders, who ignore or dismiss the impact of
these cultural changes, may find themselves managing a chaotic
situation.
Through this investigation, an analysis was conducted comparing
aspects of leadership theories to postmodernism. The paper argues that
each of the leadership theories have some flaws when applied to
postmodernism. Further empirical research needs to be conducted on the
influence of postmodernism on leaders, the workforce, and organizational
performance. The insight gained through this research may lead to better
management strategies for handling a transitional workforce in the
public sector. This effort contributes to further exploration into
understanding leadership and organizational culture in the public
sector.
STRATEGIC IMPLICATIONS
The following strategic implications emerged as a resulted of this
investigation and are offered to assist organizations with transitioning
an Emergent Workforce into their organizations:
1 Communicate formally and informally the organizational values to
employees on a routine basis. Hackman and Johnson (2004) explained that
leaders exert a great degree of influence in an organization; therefore,
leaders must have more responsibility for the overall direction of the
organization.
2 Demand that managers model those corporate values to followers in
the organization. Kouzes and Posner (1995) explained that leaders must
lead by example so that employees can see they are committed.
3 Discuss organizational values with recruits in the early stage of
interviewing to determine if their values align themselves with
organizational values.
4 Train current managers so that they understand the needs of this
Emergent Workforce. Linda Springer, the OPM Director, feels that
managers need to be aware of generational traits because differences in
work attitude and style can pose challenges (Ziegler, 2006).
5 Establish an intern program at your workplace where new employees
can connect to the organization. Encourage interns to seek out mentors.
Discuss the various leadership styles and allow workers to get a sample
of each from current leadership.
REFERENCES
Bass, B. (1999). Bass & Stogdill's handbook of leadership.
New York: The Free Press.
Blunt, R. (2003). Leaders growing leaders: preparing the next
generation of public service executives. Human Capital Management
Series.
Ferguson, C. (2003). Whose vision? whose values? on leading
information services in an era of persistent change. Retrieved on March
7, 2006, from http://www.clir.org/pubs/reports/pub123/ferguson.html.
Hackman, M. & Johnson, C. (2000). Leadership: A communication
perspective. Long Grove, IL: Waveland Press.
Hankin, H. (2005). Can we recognize our future employees. Workspan,
48(9), 12-13.
Harding, K. (2000). Understanding emerging workforce trends.
Retrieved on January 6, 2006, from
http://www.dinet/article.php?article_id=129.
Ingraffia, B. (1995). Postmodern theory and biblical theology.
About Postmodernism. Retrieved on March 7, 2006, from
http://www.freewaybr.com/pomoessay.htm.
Jin, D. (n.d.). Leadership and followership. Retrieved on March 8,
2006, from http://www.dickinson.edu/~jin/Leadership.html.
Kelm, P. (1999). Understanding and addressing a postmodern culture.
Presented to the Board for Parish Services.
Kouzes, J. & Posner, B. (1995). The leadership challenge. San
Francisco: Jossey-Bass Publishers.
Malphurs, A. (2004). Values-driven leadership. Grand Rapids, MI:
Bakerbooks.
McAulay, L. (2003). Transformational leadership: a response to
limitations in conventional information systems evaluation. Electronic
Journal of Information Systems Evaluation.
Northouse, P. (2004). Leadership theory and practice. Thousand
Oaks, CA: Sage Publications.
Organ, D. & Bateman, T. (1991). Organizational behavior.
Homewood, IL: Irwin.
Prewitt, V. (2004). Integral leadership for the 21st century. World
Futures, 60, 327-333.
Revision-notes.co.uk. (2001). Characteristics of bureaucracy.
Received on March 8, 2006 from http://www.revisionnotes.
co.uk/revision/1019.html.
Schmidt, H. (2006). Leadership in a postmodern world. Retrieved on
March 7, 2006, from http://www.mbseminary.edu/current/images/article/schmidt1.htm.
Schultz, M. (1992). Postmodern picture of culture. Int. Studies of
Mgt. & Org., 22(2), 15-35. Smith, E. & Jackson, P. (2005). The
hip hop church. Downers Grove, IL: IVP Press.
Vickrey, J. (n.d.). Symbolic leadership: The symbolic nature of
leadership. Received on March 7, 2006 from
http://www.au.af.mil/au/awc/awcgate/au-24/vickrey.pdf#search='article %2C%20symbolic%20leadership%2C%20jim%20vickrey.
Washington, G. (2002). Staffing the postmodern army. Combined Arms Center Military Review, 1-7.
Yukl, G. (2002). Leadership in organizations. Delhi, India: Pearson
Education, Inc.
Ziegler, M. (March, 6, 2006). OPM chief urges new vision to recruit
younger feds. Federal Times, 6.
Daryl D. Green, Regent University
Table 1, Characteristics of the Emergent Workforce
Generation Leadership Preference
The Matures As a follower -Thrive under a directive
(1927- 1945) leadership style
As a leader -Lead others by taking charge and
making decisions alone
Baby Boomers As a follower -Thrive under a participatory
(1946-1964) leadership style
As a leader -Lead in a collegial and consensual
fashion with a general concern of others
Source: Leadership: A Communication Perspective by
Hackman & Johnson
Generation X As a follower -Does not thrive under authority
(1965 -1976) leadership style
As a leader -Lead others by being adaptable to
change, fair, competent,
participatory, and diversity-sensitive
Generation Y As a follower - Does not thrive under authority
(1977 - leadership style
present) As a leader -Lead with a tolerance of others,
value-centered, rule-oriented, and
culturally sensitive
Source: Leadership: A Communication Perspective by
Hackman & Johnson
Table 2, Comparison Model of Leadership Theory
Postmodern Theory Bureaucratic Theory
Advantages Advantages
Worldview Formalized
Aesthetics Chain of command
Rhizomatic (thinking Division of labor
outside the box)
Flexibility Legitimate leaders
Commitment to small Fixed compensations
groups for meaning
Duties of leaders and
employees clear
Transactional Theory Transformational Theory
Advantages Advantages
Feedback to employees Visionary
Rewards employees for Seek to change the framework
performance
Communication Raise employees'
exchange consciousness
Demand for higher employee
Adherence and performance
Maintenance of existing Empowerment
goals and norms Inspirational
Higher level of motivation
and morality
Consideration of employees
as
individuals as well as value of
team
High communications
Promote innovative thinking
Trust building
Source: Yukl, Hackman Source: Yukl, Hackman &
& Johnson, Bass, & Johnson, Bass, & Northouse
Northouse
Table 3, Comparison Model of Leadership Theory
Postmodern Theory Bureaucratic Theory
Disadvantage Disadvantages
No single truth Impersonal rules
Historical and cultural process Impersonal guidelines
over reason
Disappearance of authority, Discharge of authority
unity, continuity, purpose, and based on rules without
commitment regard for persons
Emergence of complexity, Norm of impersonality
multiplicity, fragmentation, govern interpersonal
resistance, negation, rupture, relations
and irreverence for any
specific goals
Against institutionalism People are considered parts
of a group instead of an
individual
Inflexible and slow to
cultural changes
Source: Ingraffia, Schmidt, & Source: Revision-
Schultz notes.co.uk
Transactional Theory Transformational Theory
Disadvantages Disadvantages
Appeal to the "economic Social architect
man"
Status quo
Based on rewards and Aligned to organizational
consequences values and norms
Inflexible in a bureaucracy
Elitist
Antidemocratic
Source: Yukl, Hackman & Source: Yukl, Hackman &
Johnson, Bass, & Johnson, Bass, & Northouse
Northouse