Two companies, Roland Media and Go! Corp, are both headed by transformational leaders
However, Roland Media showed much greater profitability over a 5-year time period than did Go! Corp Which of the following best explains why Roland Media performed better than Go! Corp under transformational leadership?
A) Roland Media's leader goes through a complex bureaucratic structure, whereas Go! Corp.'s leader regularly interacts with the company's workforce to make decisions.
B) Unlike Go! Corp.'s employees, Roland Media's employees don't readily give up decision-making authority.
C) Roland Media is a small, privately held firm, whereas Go! Corp. is a large, complex public company.
D) Roland Media is headquartered in a low power distance region, whereas Go! Corp. is headquartered in a country that is high in power distance.
E) Roland Media's employees tend to be more highly individualistic than do Go! Corp.'s employees.
C
Explanation: C) Transformational leadership is most effective in small, privately held companies. It is less effective in complex organizations. Transformational leaders are more effective in improving group potency in teams higher in power distance and collectivism. They are less effective when leaders must deal with bureaucratic structures, when employees are highly individualistic, and when employees don't easily give up decision-making authority.
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