|||| Home ||| McNerney's Leadership||| Transactional Leadership ||| Transformational Leadership ||| Both Leaderships||| Future Thoughts/Profits ||| Work Sited ||||
What is transactional leadership?
Transactional leadership is of the leadership style that is often used by many companies. Transactional leadership consists of focusing on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance. This leadership assumes that the leader provide reward to subordinates when they complete their job effectively or look at their accomplishments to reward.
How McNerney implies transactional leadership with 3M?
Sometimes, he rewards them even though they are done a little part of the project, but it means a lot to the employees. His leadership’s style expects and inspires employees and asks them to take the value that are important to their life and bring it to work. Moreover, he continues pushing people to grow and keep succeed, because it feels good if someone success and it feels great to work with people who are improve and achieve. According to Mike Trigg, a columnist for the Motley Fool (www.fool.com) said that McNerney not only “know how to run a diversified business, but also how to cut costs and increase efficiencies”(Miller, William H.). McNerney did consists of cutting cost and restructuring 3M by reduce about 7 percent of the company’ workforce. These cuts bring 3M save $300 million annually in mid 2002. Besides, McNerney did put into operation includes global sourcing by cutting number of supplier by concentrate on particular purchasing; indirect cost reduction that tighten up on travel between workers and outside service. McNerney has ability to view what is really happening in his workplace and with his competition, knowing what his employees are really good at and what is not good at. Then, he would spotlight on them. That is what he did at the company. “If there’s such a thing as star quality in a CEO, McNerney has it” (Miller, William H.)
How transactional leadership effect others?