to identify the time when an employee reaches a point when it is necessary to increase their responsibility and input in the decision making process in order to maintain an high level of motivation.The final aspect of Chemers’ categorizations is transactional exchange. Despite whether the leader knows or cares, his or her demeanor has a drastic effect on the workplace. Therefore, it is based on this that the leader plays a huge role in determining what kind of atmosphere the workplace maintains. This is where the leader derives some of his or her authority, as transactional exchange is what determines how the subordinates see their leader. The third and final function is resource utilization. As the name implies, resource utilization simply refers to the leader’s capability to effectively organize and make use of the qualities of self and others in attempting to achieve the common goal. “Leaders must mobilize and deploy the collective resources of self and team to the organizational mission by matching operational strategy to the characteristics of the environment” (1997: 173). Following the trend of the previous functions, Chemers covers what he refers to as leader – subordinate transactions, or “… reciprocal exchanges in which leaders and followers create a transaction that allows for mutual satisfaction of goals and needs” (1997:61). These transactions truly lay out how their followers judge a leader, and how the leader looks at the followers, as well. Chemers put it simply when he stated “…leadership influence rests ultimately on the follower’s perceptions of the legitimacy of authority” (1997: 77). Leadership depends on both internal and external factors equally, as an effective leader must possess the ability to take into account all variables from all sources, and mold their form of leadership to best fit the given situation. Leadership is not ...
