Leadership research is pervasive in the organizational literature, and studies in mental health services suggest that leadership is essential for both the organizational process and consumer satisfaction and outcomes. Glisson and Durick found that higher levels of positive leadership in human service organizations were associated with higher levels of organizational commitment. Higher levels of positive leadership were associated with a more positive organizational climate, which was, in turn associated with higher positive management ratings of the working alliance. Thus there are links between leadership, organizational and consumer satisfaction, and outcomes.
Transformational and transactional leadership are two well-studied leadership styles that have been assessed by the Multifactor Leadership Questionnaire (MLQ). Numerous studies have assessed and validated that transformational and transactional leadership span cultural and organizational boundaries. Leadership studies with the MLQ have also been conducted in mental health and other public-sector organizations, healthcare settings, and service settings. A given leader may exhibit varying degrees of both transformational and transactional leadership. The styles are not mutually exclusive, and some combination of both may enhance effective leadership.
Transformational leadership is akin to charismatic or visionary leadership. Transformational leaders inspire and motivate followers in ways that go beyond exchanges and rewards. Transformational leadership operates exceptionally well in close supervisory relationships, compared with more distant relationships, and closer supervision is often more typical in mental health settings. This close relationship may be typical of a supervisor-supervisee relationship and is also captured in the notion of “first-level leaders,” who are considered necessary because of their functional proximity to supervisees in an organizational setting. Transformational leadership is thought to increase the follower’s intrinsic motivation by expressing the value and importance of the leader’s goals.
In contrast, transactional leadership is based more on “exchanges” between the leader and follower, in which followers are rewarded for meeting specific goals or performance criteria. Rewards and positive reinforcement are provided or mediated by the leader. Thus transactional leadership is more practical because of its emphasis on meeting specific targets or objectives. An effective transactional leader can recognize and reward followers’ accomplishments promptly. However, subordinates of transactional leaders are not necessarily expected to think innovatively and may be monitored on the basis of predetermined criteria. Poor transactional leaders may be less likely to anticipate problems and intervene before problems come to the fore, whereas more effective transactional leaders take appropriate action in a timely manner.
