The Shift from Transactional to Transformational Leadership Style in Bangladeshi Companies

Abstract

For years, most Bangladeshi organizations have followed a rigid transactional leadership style. While transactional leadership style has its benefits, holding on to a rigid reward and punishment based leadership style is not appropriate for modern day workplaces, especially for organizations full of young professionals. High turnover rates, employee dissatisfaction, lack of motivation, and lack of growth within the organization are some of the issues that stem from this rigid leadership style in Bangladesh. A shift towards transformational leadership style may help deal with these problems in Bangladeshi organizations. In Bangladesh, transactional leadership style is more prevalent in the manufacturing and service industry, while the IT industry leans more towards the transformational leadership style. This is study has been conducted on these industries, and discussed how a transition might help with employee well-being and employee retention.