Report On Leadership And Organization

Transformational Leadership in Business

Describe about the  Report on Leadership and Organization?

Introduction:

The report aims at critically evaluating the evidences that transformational leadership impacts positively upon employee motivation and organizational culture and thereby influences the success of the business. From various literatures it is identified that transformational leadership style is much more effective for the longer term. Thus, this report discusses the major impacts of this leadership style along with major evidences from the business environment.

As per several researches, transformational leadership in business may result in some excellent changes towards desired direction. An instance can be a new chief executive officer who revitalizes a firm as well as returns to profitability (Al-Mailam, 2004). The concept of transformational leadership refers to the leadership approach which results in change in individuals as well as social systems. Ideally, the leadership style creates valuable as well as positive change within the followers along with the ultimate goal of transforming followers into leaders. This leadership style increases the morale, motivation, and overall performances of the followers with the aid of varied mechanisms (Ali Shurbagi, 2014). The process includes linking the sense of identity of the followers to the overall mission of the organization, acting as role models for the followers to inspire them, motivating them to take up the ownership, and aligning tasks to followers after proper understanding of the strengths as well as weaknesses of those followers to maximize their performances (Simpson, Green and Scott, 2011).

The responsibility of every organizational manager within the workplace is to exhibit leadership qualities. It is often a mistake in the assumption of the managers that since they are the managers they are even the leaders and hence their subordinates would automatically follow them. However in reality, organizational position denotes title only and not leadership. Among the various available leadership styles exhibited by leaders, transformational leadership approach enables managers to be exceptional leaders (Chapparamani and Jyothi, 2011). To apply transformational leadership approach within the workplace, it is important for every individual to understand the exact concept of this leadership style. To define simply, transformational leadership refers to the process which changes as well as transforms every individual. This leadership style incorporates changes within individuals so as to improve and lead. The style involves assessment of the motives of the associates, satisfaction of their needs, and rendering value to them (Chen and Silverthorne, 2005). So, in an organization, transformational leaders can render increased success to the organization by giving value to the members.

An instance that can be referred to here is that of Sam Walton, the founder of Wal-Mart. He often visited the stores of Wal-Mart across the nation to meet with every organizational employee and deliver them appreciation for their contribution towards the company (Chiu, 2010). Four different factors exist in transformational leadership, namely inspirational motivation, idealized influence, individual consideration, and intellectual stimulation.

• Inspiration motivation refers to managers who encourage members to commit towards organizational vision. Managers having inspirational motivation are said to encourage team spirit for achieving goals of enhanced profit and market growth for the organization.
• Idealized influence refers to the managers who act as influential role models for the members. Such managers can be highly trusted and respected by the organizational members to make effective organizational decisions (Chreim, 2014).
• Individual consideration refers to the managers who are like advisors to the team members. They motivate members for achieving objectives that are beneficial for both members and that of organizations.
• Intellectual stimulation refers to the managers who seek innovation as well as creativity by challenging the usual beliefs of the team members. These managers encourage critical thinking as well as problem solving within workplace (Clarke, 2011).

Effective style of transformational leadership leads to performances which exceed all expectations of the organization. All the four factors of transformational leadership as mentioned above result in performance beyond expectation. When managers act as strong role models, innovators, motivators, and advisors, they are said to utilize all the above factors to enable transformation of their associates into increasingly successful members (Tan et al., 2013).

Transformational leadership may be contrasted with other leadership styles like transactional style as well as autocratic style. It emphasizes upon the responsibilities of organization, supervision and group contribution. Here, the leader encourages his members by means of rewards as well as penalties. It has a negative impact in a way that when leaders punish members for undesirable performances, it leads to adverse mental influences, and often leads to negative outcomes. On the other hand, autocratic leadership refers to the dictating policies of leader who decides upon goals to be achieved, including to that of controlling as well as directing activities without effective participation of employees. This reflects dictatorship of a leader which is strictly undesirable. Another style that may be focused is democratic leadership style that comprises of leader who share abilities of decision-making along with team members by encouraging interests of all members with practice of social equality. In contrast to these styles, transformational leadership style is far more effective and inspiring for organizational members.

Since the concept of transformational leadership encompasses wider aspects in leadership, no particular steps exist to be followed by a manager. Thus being an effective transformational leader is a dedicated process. So it needs enormous and careful efforts to be a transformational leader (Fisher and Robbins, 2014). Transformational leaders must possess the following attributes:

• The managers empower members to do what is best suited for the organization
• They are potential role models with high values
• They listen to every perspective for developing the spirit of cooperation
• The managers create vision with the help of the organizational people (Holly and Igwee, 2011)
• The managers act as change agent to set example in initiating and implementing changes
• Transformational managers support the organization by helping members

From the business world, instances can be cited that reflect upon the most desired or practices form of leadership style. Bill Gates is regarded most in the world of business and ranks one of the top ten business leaders of the globe. He was known to be highly demanding as well as bit abrasive as a boss and promoted creativity as well as innovation. He recognized individual as well as team achievement (Iszatt-White, 2009). Bill gates exhibited more than one type of leadership, most transformational and authoritarian. Authoritarian leaders prefer keeping the control. He demanded so much of control that he even signed off the expense of Steve Ballmer who stood second in command. Authoritarian leadership is effective in cases of emergencies where quick decisions are required. Hence, major success of Bill Gates can be attributed to the quick-decision making quality (Pinnington, 2011).

There have been several transformational changes within the technology, and also more to be expected in the future. The innovative development of computing technology by IBM, Apple, Intel Microsoft and others signified a transformational event. The co-founder of Apple, Steve Jobs and others had transformed several business processes by means of software application as well as high-speed microprocessors (Kennedy, 2008). During 1990s technologically another transformation had occurred in form of development of roadmaps by Yahoo and Google through search engines, eBay, and Amazon ecommerce. On the other hand Apple continued to rule the world of technology with mobile services.

In the sector of financial services, the transformational leader include founder Edward Johnson as well as star portfolio manager Peter Lynch, a leader in mutual funds. Another pioneer of index funds is John Bogle (Khany and Ghoreishi, 2014). Index funds are in fact mutual funds which track key indexes. The funds have eventually transformed the manner people invest since they offer diversification as well as professional money handling at lower cost. The revolution of the internet has increasingly affected the financial sector. Investors have taken effective charge of their investments by means of opening accounts with discount brokerages online. Investors now are own financial planners.

Application of Transformational Leadership

Diversified businesses function within several industries. It is Warren Buffett who actually transformed the clothing manufacturer, Berkshire Hathaway, to a great company which outperformed consistently all its competitors (Muchtar and Qamariah, 2014). Again, Jack Welch had joined General Electric as the chief executive officer, and had transformed the organization into an agile powerhouse. His enormous motivation has encouraged his managers to respond most effectively (Lind and Stevens, 2004). To cite other examples of transformational business alteration include total quality control as well as outsourcing. Outsourcing has rendered increased efficiencies in the business processes. This also led to the generation of numerous jobs in all impoverished areas of the globe.

Transformation leadership style initiates with awareness, specifically in terms of feelings, thoughts, how these impact upon the actions and also others’ states. Transformational leadership motivates the wholeness of being; hence personal thoughts, actions, and feelings are thoroughly consistent (Martinez-Campillo, 2014). It solely means to lead with integrity as well as authenticity which resonates along with others, and also motivates them. The style not only encourages others to follow but to act as leaders themselves. Transformational leadership refers to an effective role of managers who seek success since leader effectiveness dictates the level of success towards the organization.

Conclusion:

From the above study, it can be perceived that although no specific leadership style is perfect for all organizations, the most preferred form of leadership style is transformational style that has been practiced by major successful companies (Moors, 2012). One worth mentioning is that as per the researches it has been identified that Bill Gates who is most respected in the world of business is a transformational leader. He believed in the idea of innovation as well as creativity, along with thorough motivation of his fellow team members. He encouraged them at a great level and ensured that his organization was directed as per the strategic objectives that were determined by him.

From the assignment report on leadership style, I feel I have acquired ample amount of knowledge regarding the subject area. From the study I opine that an effective leader usually satisfies two key areas: potential personality as well as knowledgeable or experienced. I learn that a business firm may adopt any leadership style at any point of time depending upon the situational demands. No single leadership style is perfect for every organization. So, in future I would never judge a leader as per his leadership style; rather I would consider the business environment he works around. It is quite clear to me that a true test of leadership as well as that of a leader is their capability to attain their followers. Leaders may provide vision to followers but the need to convince others rather than just telling is much more important and essential. The concept of followership did highlight to me that I may possess best ideas, charisma and determination, but these would not help me if I lack followership. While undertaking the assignment on leadership style in organizations, I came across various important and essential information and knowledge about leadership style. I learnt that transformational leadership cannot take place in absence of positive followership as well as a transformational leader thoroughly motivates his followers to execute more than is expected to do. The key aspects that resonated with me all throughout are ethics, authentic and transformational leadership, and followership. It is quite clear to me that a leader who emphasizes on these aspects would be able to bring about significant changes and also be an effective, respected and creative leader within the organization. I totally agree to the knowledge that innovative leadership requires to embody authenticity whereby values are expressed as well as embraced by their followers and ethical decisions are completely based on the creative thinking, autonomy and consequences, rather than solutions that are short-term. I learn that organizational structure and culture play crucial role in the determination of leadership style to be incorporated by any firm. When business firms are analyzed, it is identified that all major successful firms practice transformational leadership style as evidenced by the most famous entrepreneur, Bill Gates. Reflection upon the practices of this great leader, it taught me that it is not just enough to possess best ideas and creativity. It is also important to acquire and manage followers in the best way possible. This would enhance the role and controlling power of a leader. I have learnt that with my personal experiences, I need to gain authenticity. When I lead my own role, I would focus on staying true to my own values. All the learning and information that I acquired from the study would be of immense help to me in future if I utilize the information in my own practical field. When such situations would arise where I need to exhibit my leadership qualities, I would make sure that I pay enough attention to the need to develop followers before practicing any of the leadership styles. I would encourage my team members to undertake tasks that are aligned to the strategic objectives as laid in favor of the organizational environment.

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