Psychology – A Level specialist option – Organisational Psychology | e-Consult

Leadership style determines the climate in which individuals and groups operate, shaping motivation, communication, and performance.

• Transformational Leadership: Leaders inspire a shared vision, encouraging autonomy and creativity. This style often raises intrinsic motivation, leading to high‑performing, self‑directed teams. Example: A tech start‑up CEO who articulates a compelling future and empowers engineers to experiment, resulting in innovative product launches.
• Transactional Leadership: Emphasis on clear structures, rewards, and penalties. It can be effective for routine tasks where compliance is critical, but may limit empowerment. Example: A manufacturing floor manager who uses performance‑based bonuses to maintain output consistency.
• Situational/Contingency Leadership: Leaders adapt their approach based on task complexity and team maturity. By matching style to group readiness, they optimise both individual development and group efficiency. Example: A project manager who adopts a coaching style with a novice team but shifts to delegating once competence grows.

When leaders align their style with the needs of individuals and the collective, they foster environments where personal strengths are leveraged, group cohesion is enhanced, and organisational objectives are met more effectively. Misalignment, however, can cause disengagement, conflict, and reduced performance.