“Fueled by Ambition”: A Case Study of Transformational vs. Transactional Leadership in Action

Jeremy J. O’Connor; Tracy R. Blasdel

Jeremy J. O’Connor and Tracy R. Blasdel

Rockhurst University, USA

Volume 15: 2022, pp. 17-28; ABSTRACT

The purpose of this case is to facilitate the learning, reflection, and discussion of the characteristics of Transformational and Transactional Leadership in the context of two significant and real leadership scenarios. More specifically, this case describes the leadership styles and decisions made by two CEOs in the automotive industry, Mary Barra of General Motors, and Martin Winterkorn of Volkswagen. Both leaders with ambition and a vision for the future of their companies, the case provides details not only on the different strategic directions provided by Mary Barra and Martin Winterkorn, but also describes how their leadership styles and decisions guided their organizations to very different outcomes. Both seeking to position their automotive company as a global leader, Mary Barra pursued a strategy focused on electric vehicles, while Martin Winterkorn’s strategy was based in diesel technology. However, the key analytical difference in the case lies not in technology, but in the leadership approach. Using these examples, the reader can learn, analyse and discuss the characteristics of Transformational and Transactional Leadership in the context of specific and real leadership scenarios and better understand how they can work with a variety of leaders with varying leadership styles.