EIRP Proceedings, Vol 7 (2012)

Abstract

The issue concerning leadership is a very complex one, that is why taking into the account the plurity of styles already existant many times it was asked the questions: „What type of leadership is necessary?”. By asking  this question, we are thinking of a person responsible with organizing or coordinating work or the ones hired to do this, to think of what people want, to solve the management problems in group.This study is intended as a comparison of the two types of leadership (transformational vs. transactional) in terms of employee performance in public and private organizations. To measure performance and chose two indicators: satisfaction and productivity.This study falls into the category of research studies the type of driving through subordinates (Bass and Yamario, 1990, Nielsen and Campbell, 1993) with both theoretical and practical implications.The efficiency of this type of leadership has been demonstrated by studies especially in the political and military (Bass, 1989; House, 1977 Burns, 1978) and very few studies have been made ​​in industrial (Giordo, 1998, Maher, 1997). Type of transformational leadership is better than transactional perceived as transformational leaders are closer to the needs of employees and continuously investigate these necessities. This paper presents a practical validity as advising managers to develop a transformational type of leadership, both public and private organizations, leads to better performance.  Also open new avenues of research, among which we can mention:  study the impact of organizational culture on the adoption of transformational type vs transactional type; decision-making mechanisms in the type of transformational leadership;  initiate training programs to develop a transformational type of leadership.