Leadership Styles and Type of Organization

The role of leadership is well-known for its potentially beneficial effects on the functioning of an organization. Although there are various theories that describe different types of leadership styles, there are also differences in the structure of organizations that may complement or hamper the effectiveness of leadership. This paper will explore the relationship between two leadership styles -transactional and transformational leadership- and how these styles relate to two broadly defined organizational structures -vertical and horizontal structure. As will be clarified, the transformational leadership style tends to be superior for an organization and works better within a horizontal structure, but this style requires significantly more effort on the part of a leader than does the more common transactional style.