Both transformational leadership and leader-member exchange leadership theories have been an issue of discussion for many scholars. The majority of authors agree that transformational leaders ‘have qualitatively different and quantitatively greater effects on their followers than the effects of exchange leaders’ (Gupta & Krishnan 2004, p.7). This essay builds on the existing literature about these two theories and will try to draw a parallel between LMX and transformational leadership, i.e. it will reveal the different and similar qualities of supervisor-subordinate relationships. Specifically, the essay focuses on the mechanism that each style of leadership uses in developing these relationships. That will actually help to find out some differences and similarities. This paper initially revisits the main aspects of transformational leadership and LMX leadership theories and then discusses them in relation to their capacity to develop differing qualities of supervisor-subordinate relationships.
In ‘Leader-Member Exchange, Transformational Leadership, and Value System’ Krishnan (2005) noted that according to Burns, ‘the result of transforming leadership is a relationship of mutual stimulation and elevation that converts followers into leaders and convert leaders into moral agent’, which means that both leaders and team members offer one another. In this case, leaders serve their followers, create conditions for their further development, and make them feel free and independent in their work. Burns also claimed that ‘leaders and followers raise one another to higher levels of morality and motivation’, i.e. the transformational leadership is possible because of both, the team members and leaders, become better and improve each other (Gupta & Krishnan 2004, p ...