Leadership, the process by which leader motivate followers to perform well is a critical element in ensuring the sustainability of an organization.

Effective leadership always plays an important role in the growth and better performance of the organization Research in the field of leadership has never saturated with theoretical and conceptual quests for leadership styles that work with any situation and followers condition. Regardless of the type of organization, leadership is discerned to play a vital role in establishing high performing teams. Therefore, the purpose of this essay was to extend do certain leadership styles bring benefits to their followers and organization? Which is the best leadership styles should be used in organizations? Contemporary literature on leadership mainly focuses on the two main dimensions of leadership i.e. transactional and transformational leadership Transactional leadership is grounded by an exchange relationship and refers to a situation where leaders provide rewards to followers who achieve good performance and, on the contrary put on punishment to those who are not. Transformational leadership, on the other hand increases followers motivation to achieve higher performance, commitment and trust to the organization (Bass 1985). Thus, while rules and regulations dominate the transactional organization, adaptability forms the important characteristics stressed that transformational leadership is strengthened by accrued benefits while transactional leadership is solely based on the economics exchange. (1997) Many research has been conducted to determine the impact of transformational and transactional leadership style in organizations. Research attempted to examine the effects of leadership style on the organization commitment and job satisfaction of customer contact personnel in two services. The subjects were 77 branch managers from three regional banking organizations and 47 store managers from one national food chain. Emery et. al (2007) found that the effect of transformational factors of charisma, intellectual stimulation, and individual consideration are more highly correlated with job satisfaction and organizational commitment than the transactional factors of contingency reward and management-by-exception. These findings seem to support Basss (1985) model that suggests that transformational leadership is more predictive of individual and group performance.

Transformational leaders tend to build creativity inducing environments through intellectual stimulation (Bass, 1985). According to Sosik et. al (1998), intellectual stimulations is a key characteristic of transformational leadership which is likely to promote creativity by encouraging followers to think out of the box and by enhancing generative and exploratory thinking. Transformational leaders stimulate their followers to think about old problems in new ways (Bass, 1985; Hater & Bass, 1988). Followers are encouraged to question their own values, traditions, and beliefs, as well as the leaders beliefs and assumptions. For example, when a group of subordinates engages in a brainstorming task to generate innovative and creative approaches to solve their problems, the transformational leaders intellectually stimulating behaviours, statements and attitudes can not only help followers append more time on generating unconventional ideas, but also help them reduce the potential effect of evaluation apprehension, thus enhancing creativity in groups (Diehl and Stroebe, 1991). In contrast transactional leadership tends to give followers rewards in exchange for achieving certain levels of performance. (Waldman et. al, 1990). As such, followers are not expected to go beyond their intial expectations nor are they motivated to try out creative solutions to change the status quo. Often-times their performance is closely monitored based on a preassigned standard. There are no active and intentional efforts mabe by the transactional lader to enhance followers creativity. Followers are extrinsically motivated to perform their job under the transactional leader, which may hold creativity at the minimal level (Amabile, 1998) Transformational leadership and empowerment also can reduce the degree of perceived intention of customer contact service employees to leave the hospitality organization. Research was done by surveying a sample of restaurant services employees from India. Gill et. al (2011) found significant negative relationship between transformational leadership and employee intention to quit. Hospitality industry workers, like other workers, are subjected to a dynamic, multinational, multi-lingual, and many times to unplanned or unforeseen peaks in their working environments, all contributing to higher levels of work related frustration, which in turn, leads employee intention to quit. Transformational leadership clarifies mission, goals, and objectives to followers.

Clarification of mission, goals, and objectives of the organization reduces the tension of workers related to their daily task and thus reduces employee intention to quit. Therefore, it is theorized that transformational leadership reduces employee intention to quit in the hospitality industry. One of the researched has been conducted to determine the impact of transformational and transactional leadership style on job success and career satisfaction from various private organizations working in Pakistan. The study of Riaz and Haider (2010) found that in the private sector, transactional leadership style positively and significantly related to job success as compared to transformational leadership style, which pertains to the provision of either positive rewards in case of meeting established goals or negative rewards when the performer fails to achieve the desired objective. This builds a strong relationship with concrete success in terms of career growth, compensation and supervisors satisfaction. The analysis further gives the positive and relatively higher value of transformational leadership style which reveals that partial or full transformational leadership approach has also been applied, which is about a visionary manager with cohesive group norms and establishing innovative thinking within group. While study of Lowe et. al (1996) found that transformational leadership was associated more strongly with subjective performance indicators in public organization (for example, government agencies). Research by Rowold and Rohmann (2009) was to provide information about the effectiveness of transformational and transactional leadership style in the domain of German nonprofits orchestra. They identified and contacted thirty randomly sampled nonprofit orchestra located in a variety of cities in Germany. The research shows that transformational leaders will foster performance, partially because they prevent negative emotions on their followers side. A high level of satisfaction among members is especially important in nonprofit organization such as recreational orchestra. Preventing negative emotions seems to be crucial, especially in nonprofit organizations where members are free to join or leave. Transformational leadership also was positively related to positive emotions because leaders induce joy, pride, admiration, and enthusiasm in the followers. The research also shows that, transactional leadership was

positively related to positive emotions. The simple lower-order (contingent reward) relationship and conductors active search for error and mistakes (active management by exception) yielded positive emotions on the followers side. Transactional and transformational leadership behaviors provided varying results in different scenarios. In some situation, transformational leadership behavior was found significantly affecting predicting variable and in some cases transactional leadership behavior. The next school of thought originated in the form of situational theories, which assumed that appropriate leaders behavior varies from one situation to another. The best course of action or leadership behavior is required in accordance with the situational variable (Griffin, 1999). Additionally, Bass and Avolio (1994) argued that although the transformational and transactional leadership are different paradigms, they are not mutually exclusive. No uniform leadership style is the best rather various variables like the leadership style, qualities of the followers and aspects of the situation play significant role in overall success (Hick and Gullett, 1987; Griffin, 1999)