Transformational Leadership
Leadership is a process of putting up a system for people to throw in their efforts to make something happen. The kind of a leader that an organization has will determine the direction it will take in terms of development (Gronn, 2002, 423).
Even though the terms charismatic and transformational leadership are normally used interchangeably, some studies have tried to differentiate them, with charismatic leadership being a subset of transformational one (Judge et al., 2002, p. 765).
According to Bratton & Gold (2007, p. 13), transformational leadership has four aspects, namely, charismatic influence, personal consideration, rousing motivation, and intellectual stimulation.
As an inspiration of change, transformational leaders bring out performance beyond expectancy by inculcating pride, facilitating creativity, offering inspiration, and communicating individual respect (Judge et al., 2002, p. 765). Using charismatic influence, transformational leaders help their followers see what is really important and convey a sense of mission.
Through personal consideration, transformational leaders focus on the followers’ developmental needs and delegate duties in a way that encourages learning experience.
Through inspirational motivation, they use symbols and emotional appeal to direct followers’ efforts, thereby guiding them to achieve beyond expectation. Lastly, through intellectual stimulation, transformational leaders encourage their followers to adopt new ways of thinking and develop problem solving skills and logical reasoning before taking any action (Bratton& Gold, 2007, p. 13).
Examples of transformational leaders include IBM President and CEO, Samuel J. Palmisano, and Walt Disney Company’s CEO, Bob Iger. According to IBM President, company employees must ensure that their actions are driven by the following values: commitment to client success, innovation that is useful for the company and the world at large, trust, and individual responsibility in all forms of relationship.
Samuel J. Palmisano was in the forefront to ensure that these values were adhered to (Palmisano, 2007). Bob Iger is among the global leaders who lead by example in advocating for excellence and high integrity in the workplace (The Walt Disney Company, 2007).
Leadership Approaches for Today’s Employees
The most prominent styles for today’s employees are transformational and transactional leaderships. Transactional leadership entails a series of bargains between the leader and the employees (Judge et al., 2002, p. 766).
On the other hand, transformational style is when leaders empower employees to attain set objectives and vision of the organization. Transformational leadership is highly correlated with productivity, work satisfaction, employee commitment, and minimal level of work stress (Judge & Piccolo, 2004, p. 757).
Transactional leadership can further be classified into contingent reward leadership and management-by-exception. The latter involves transacting with employees by only intervening when employees deviate from the expectations or fail to meet targets. The former entails rewarding efforts on a contractual basis and punishing undesired actions (Judge et al., 2002, p. 767).
Based on the timing of intervention, management-by-exception can be classified as an active and passive management-by-exception. Passive management-by-exception leaders only intercede after failure to meet standards, while active management-by-exception leaders often expect challenges or problems. Transactional and transformational leadership cannot work as well as be applied in all the situations or time.
This is where situational leadership comes in. This type of leadership approach is based on the philosophy that a leader ought to be flexible enough to adjust to changing times and situations. Therefore, this approach blends transactional and transformational leadership techniques (Judge & Piccolo, 2004, p. 757).
Other leadership approaches used for today’s employees are found in Tannenbaum and Schmidt’s leadership continuum. They include consultative and democratic leadership approaches. Consultative leadership approach involves extensive consultation and participation of all the members in decision making process.
However, the final decision is made by the leader. On the other hand, democratic leadership method characteristically gives the subordinates freedom to come up with the final decision through discussion. The leader only acts as a conference leader during the discussion (Judge et al., 2002, p. 770).
Transformational leadership is the most effective in the case where the leader and the employees share the same values and vision. However, transformational leadership approach normally proves to be ineffective in the cases where employees do not have faith and trust in their leader or the system. Transactional leadership works best among employees who are motivated by rewards.
However, this approach is ineffective for imaginative/innovative employees since it does not allow people to think beyond the box (Judge & Piccolo, 2004, p. 757). Democratic or consultative leadership approach works best with vibrant, satisfied and committed employees. Employees who are less satisfied and non-committed are less likely to take part in the discussion or consultation (Gronn, 2002, p. 439).
The Leader as a communicator
The active participation and loyalty of the labour force are the major components that enable an organization to attain world class status and implement operations management strategies.
This participation can only be achieved and maintained through effective communication between the leaders and subordinates. Effective communication motivates employees to attain the goals of the company and relate with their leaders productively (Business Studies, 2008, p. 4).
The key communication competencies needed in the leaders today include presentation and listening skills, facilitation and problem solving, coaching and mentoring skills, and carrying out high impact conversations, among others (Business Studies, 2008, p. 5).
At their best, a team can provide the best solution or results that an individual can bring. Therefore, group communication is even more important than individual communication. In addition, individual communication normally arouses suspicion among employees.
Some may feel that a leader is more incline to certain individuals. Moreover, more information is normally available in a group than with individuals. However, individual communication is equally important in an organization. An excellent rapport between the leader and employees ensures efficient flow of information and consideration (Business Studies, 2008, p. 5).
There are a number of ways for leaders to improve their communication skills. Leaders can enhance verbal communication by being assertive and as professional as possible during the conversation. Assertiveness refers to being in control and responding effectively to employees; it does not mean aggressiveness (Business Studies, 2008, p. 6).
Leaders can enhance their non-verbal communication by seeking out cues, asking for clarification, analyzing their understanding of non-verbal cues, and verifying their perception, among others.
They can improve their listening skills by sending positive non-verbal cues, taking notes, avoiding arguments, listening for concepts, and exhibiting willingness to listen. Lastly, building strong relationship with the employees involves making them feel special, aware of their culture, and understand their needs or requirements (Business Studies, 2008, p. 8).
Developing a climate of trust
Trust is defined as a confident and positive belief among people in a group, society, or organization. Trust is normally evident in healthy and strong relationships. There is a direct relationship between trust and increased productivity in organizations (Hoffman et al., 1994, p. 486). High trust environment with occupied and committed staff is much better for self-regulation and team policing.
In addition, the success of any organization during the difficult time depends on the team spirit within the company and the environment of trust among the employees. Therefore, high trust environment ensures increased productivity, better service delivery, low employee turnover, effective communication, better engagement, and innovativeness (Hoffman et al., 1994, p. 486).
Lack of trust is linked to increased stress, low satisfaction and commitment, and low performance. It also results in internal fighting and atrocious silo wall effect which impacts negatively on the production or service delivery. Therefore, it is the responsibility of the leaders to guide their organization towards recognizing and improving trust deficiencies (Hoffman et al., 1994, p. 488).
There are numerous ways through which a leader can develop an atmosphere of trust. The main concern should be fostering integrity on employees to increase flow of communication, efficiency, and overall performance. This can be achieved through open and honest leadership. This entails willingness to share information in effective ways and listening with open mind without instilling fear among the juniors.
High trust environment can also be achieved through establishment of clear expectations. Clearly outlined and well defined expectation minimizes conflicts between the leader and the employees. Other ways of building trust in an organization include fair and equal treatment of employees, and maintenance of high integrity (Hoffman et al., 1994, p. 489).
Can leaders motivate employees?
The main task of a leader is to ensure work is done with efficiency and great performance by employees. In order to accomplish this goal, he/she is required to stimulate the workforce. Motivation can be defined as a driving force for employees to accomplish the objectives (Muller, 2011, p. 4).
Many business organizations are successfully achieving employees’ satisfaction and motivation through the technique of empowerment. Empowerment is the process of giving the employees authority to become more relevant to the business organization by participating in the decision making process (Muller, 2011, p. 5).
There are two major ways through which leaders can motivate their employees, namely, creating a favorable work environment, and rewarding productive employees. The latter includes better salaries and wages, allowances, promotion, and other fringe benefits. Favorable working environment entails minimal regulation, workers’ freedom, and increased participation, among others.
Many business leaders have been striving to establish and maintain an atmosphere that is more favorable to the performance of individual employees who are working together in groups to attain pre-determined goals (Muller, 2011, p. 6).
According to Furnham et al. (2002, p. 1326), in order to create and sustain a motivating environment that will also help retain talents, two primary needs of the employees must be met; these are motivation and hygiene. Hygiene factors are the needs that can be satisfied if the particular conditions, such as regulation, interpersonal relations, appropriate working conditions, remunerations, among others, are followed.
However, motivation and provision of hygiene needs do not necessarily translate to full satisfaction. It only minimizes the level of dissatisfaction. Therefore, motivational efforts can only reduce the employee turnover rate and guarantee permanent loyalty. Motivation and hygiene factors also enhance work commitment and job satisfaction among employees (Furnham et al., 2002, p. 1326).
Leading by example
Currently, in my company, the greatest investment is made not in the products, but in the employees. The best way to enhance productivity is to assist employees to maintain innovative and focused mindset and enhance their working environment. The best way to achieve this is to lead by example.
It is very unlikely to find employees complaining and lazing around when the leader is working tirelessly hard and satisfied with his/her work. Our managers and supervisors are very approachable and closer to the employees. Most of them are always very concerned about the wellbeing of their employees.
The managers and supervisors are always on the fore front in managing change in the organization and in determining the direction that the company takes in terms of development. Over the recent past, the organizations have experienced remarkable changes, including downsizing, leaner structures, and parallel approach to the flow of information.
These changes, on the one hand, are attributed to speedy development in technology, increased competition in the global market, and the evolution in the nature of workforce. These changes are prompted by interventions, for instance, total quality management and restructuring of business processes. The managers and supervisors should be in the fore front during the initiation and implementation of these changes.
Therefore, most of the company managers and supervisors are change-centered and always act promoting inspiration to the general employees. They have also maintained high integrity, excellence, accountability and trust among the staff. There has never been a case of corruption or misappropriation of funds among the senior staff that I have heard of.
Leadership competencies needed in 2020
The world is becoming more and more interconnected as business operations are carried beyond borders. Companies become increasingly more diverse in terms of culture and ethnic composition. Therefore, in order to be successful in the future, the managers must learn how to attain results across diverse cultures, borders, and generations.
Nowadays, most of the companies lack the diversity to tackle inter-cultural challenges (Galbraith, 2000, p. 20). According to Goldsmith (2003), in order to be successful in the future, a leader must have a global mindset. He defines global mindset as the quality that enables leaders to influence people, organizations and systems that are different from theirs.
Another key competency is intellectual capital which is defined as global business knowledge, cognitive complexity and multi-ethnic stance. Psychological capital will also be required as it entails passion for diversity, pursuit for adventure and self-confidence.
Lastly, 2020 leadership will require inter-cultural compassion, inter personal influence and diplomacy. All these will be prompted by increased globalization, cross-cultural interactions, increased technology, and complex business environment (Goldsmith, 2003, p. 7).
Increased globalization means increased investment and expansion of local companies beyond national borders as a result of deregulation and improved information and communication technologies. Increased globalization will also result in the growing number of employees coming from different cultural backgrounds but working in the same organization.
Employees’ interactions will be either actual or virtual (through computers or video conferencing). Intellectual capital will be necessary due to increased technology and complex business environment (Galbraith, 2000, p. 22).
References
Bratton, J., & Gold, J. (2007). Human Resource Management: theory and practice. Basingstoke: Palgrave Macmillan.
Business Studies. (2008). Effective Communication in the Workplace. Web.
Furnham, A., Petrides, K.V., Jackson, C.J., & Cotter, T. (2002). Do personality factors predict job satisfaction? Personality and Individual Differences, 33, 1325-42.
Galbraith, J.R. (2000). Designing the Global Corporation. San Francisco: Jossey-Bass.
Goldsmith, M. (2003). Global Leadership: The Next Generation. London: FT Prentice Hall.
Gronn, P. (2002). Distributed leadership as a unit of analysis. The Leadership Quarterly, 13(4), 423-451.
Hoffman, J., Sabo, D., Bliss, J., & Hoy, W.K. (1994). Building a culture of trust, Journal of School Leadership, 4, 484-501.
Judge, T. A., Bono, J. E., Ilies, R., & Gerhardt, M. W. (2002). Personality and leadership: A qualitative and quantitative review. Journal of Applied Psychology, 87(4), 765-780.
Judge, T.A., & Piccolo, R.F. (2004). Transformational and transactional leadership: a meta-analytic test of their relative validity, Journal of Applied Psychology, 89, 755-68.
Muller, C. (2011). Employee Motivation and Incentives at Apple Inc: Incentives Really Help to Motivate Employees? New York: GRIN.
Palmisano, S. (2007). Our Values at Work on Being an IBMer.
Walt Disney Company. (2007). Corporate Responsibility. Retrieved from https://www.thewaltdisneycompany.com/about/