Leadership is very important for individuals and for businesses. Without leadership, the agency (and individual too) is like a boat without hiding. It will be goalless and will only follow the flow of the powerful forces in the company.
A leadership takes on different forms in the organization. One way to view it is by grouping between business and transformation leaders. Another is by looking at formal and informal leaders. Formal posture and power are important but influence. Impact is the raw power within an enterprise. Anyone who has an influence does not have the necessary authority to train the organization's affair with himself.
Leaders with formal power and leadership can simply use business relations for their subordinates and followers. This type of leadership works in certain circumstances. Especially if the leader is in transition and does not have to invest much time in the development of the people under him. Transactional leadership is not long-term. It's short-term. The password here is a transaction! The leader does not expect any "restoration company" with the people he is dealing with.
Transformational leadership, on the other hand, is a very different type of leadership. It takes into account the influence and condition of followers and subordinates. It rushes up people to repeat business and continuous reform!
As a leader, would you rather use short-term business relationships or long-term effects of transformers? Although I would advocate a transformative leadership out of hand, the best leadership style depends on your circumstances and organization goals and goals.
The important question that is asked is how to learn the organizational context to understand what kind of leadership is appropriate? Ask your people. Is there a good morale in the company? Or is it full of complaints and mistakes? Are people happy to be part of the company? Or do they simply wait for one payroll after another?
You also need to look at the company's performance. You can perform food or even internal audit of your business. This way you can assess the strengths and weaknesses of the organization. Based on it, you can make important decisions about style leadership suitable for the organization.
There is no right or wrong style of leadership used in an organization. What matters is how you use one style leadership to achieve your goals as a leader.