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2.2 Transformational Leadership
2.2 Transformational Leadership
1 Transformational Leadership
Growth and change are inevitable in the 21 st century, but transformational leadership can
inspire workers to embrace change by fostering a company culture of accountability,
ownership and workplace autonomy.
This concept was initially introduced by leadership expert and presidential biographer James
MacGregor Burns. According to Burns, transformational leadership can be seen when
"leaders and followers make each other to advance to a higher level of moral and
motivation."
Later, researcher Bernard M. Bass expanded upon Burns's original ideas to develop what is
today referred to as Bass’s Transformational Leadership Theory. According to Bass,
transformational leadership can be defined based on the impact that it has on followers.
Transformational leaders, Bass suggested, garner trust, respect, and admiration from their
followers.
Transformational leadership, focuses on the needs of others, rather than the needs of the
leader. Similar to servant leadership, but differs because in each style the leader has a
different focus.
The transformational leader’s focus is “directed towards the organisation, and his or her
behaviour builds follower commitment toward organisational objectives. On the other hand,
servant leader’s focus is on the followers, and the achievement of organisational objectives
is a subordinate outcome.”
Broadly speaking, it has its roots in the idea of charisma. Charisma is, of course, an old
concept. However, there has been renewed interest in charisma in the past 40 years.
Underpinned by the idea that employees have been “overmanaged but underled.”
Transformational leadership has a much greater focus on leading, rather than managing.
So, Bass suggested that there were four different components of transformational
leadership.
First, Intellectual Stimulation: Transformational leaders not only challenge the status quo;
they also encourage creativity among followers. The leader encourages followers to explore
new ways of doing things and new opportunities to learn.
Third, Inspirational Motivation: Transformational leaders have a clear vision that they are
able to articulate to followers. These leaders are also able to help followers experience the
same passion and motivation to fulfill these goals.
Fourth, Idealized Influence: The transformational leader serve as a role model for followers.
Because followers trust and respect the leader, they emulate this individual and internalize
his or her ideals.
So what are some typical signs of a transformational leader? Groups led by this type of
leader tend to be both successful and loyal. They give a lot to the team and care deeply
about the group's ability to accomplish its goals. Turnover tends to be quite low as
transformational leaders are able to inspire a great deal of commitment in their followers.
Transformational leaders excel in a variety of sectors. Here are notable business leaders
who used the transformational style.
After the war ended, the U.S. Department of the Army sent Deming to Japan to study
agricultural production and related problems. He convinced Japanese officials of the
potential for industrial uses of statistical methods. Deming's goal was to have Japan become
a world industrial power in five years. Japan did it in four. Deming was asked to do the same
thing for U.S. manufacturing firms, but his methods did not take root until the 1980s.
Peter Drucker
Peter Drucker was a professor and management consultant among other things. He
predicted some of the 20th-century's biggest changes, such as the Japanese rise to a world
economic power, the age where people would need to learn in order to keep their jobs or
get ahead, and the importance of marketing and innovation. He coined the term
"knowledge worker."
Drucker continually called for balanced management, which called for a balance between
short-term needs and long-term plans, as well as profitability and other elements of
business. He was very interested in how to mesh innovation and entrepreneurship.
He felt that entrepreneurship was a vehicle of innovation. Entrepreneurship was not just
high technology, but high tech was a vehicle for change, in attitude, values, and behavior.
The entrepreneur systematically looked for change, responded to them and took advantage
of opportunities as they present themselves.
Ross Perot
H. Ross Perot started his career as a salesman for IBM. In the 1960s he started his own
company, Electric Data Systems (EDS), one of the first businesses that built and serviced
computer systems for other companies. In contrast to IBM, Perot trained his workers to do
whatever needed to be done for a customer without waiting for approval. There was a
strong bias toward action.In the beginning, Perot shunned strategic planning. Over the next
few years, however, he hired military officers who could take orders and give orders. Perot's
slogan was "Go, do."
If an employee took credit for someone else's work, they were out the door. The motto of
Perot's company at one point was "We bring order to chaos."
John D. Rockefeller
John D. Rockefeller was the founder of Standard Oil. It started as a single oil refinery and
grew to a huge company. Much of the company's growth came through acquisitions. But,
Rockefeller also spent a considerable amount of time streamlining the organization as it
grew.
Rockefeller built his company's early reputation by guaranteeing the quality of Standard's
kerosene. He was known for his organizational tactics and for using disciplined strategies.
One of the reasons for Rockefeller's success was he could align his company with one simple
vision, then he held everyone accountable for their part in making that vision happen.
Jeff Bezos, Amazon: Harvard Business Review attribute’s Bezos’ “insider, outsider” status as
part of what makes him a great transformational leader. As someone who jumped from the
finance world, he brought a fresh perspective to e-commerce through years of experience in
a different industry.
Reed Hastings, Netflix: Hastings tied for first alongside Bezos, and for similar reasons. Hailing
from the software industry, he wasn’t rooted in pre-established process and procedure in
the television industry.
Jeff Boyd and Glenn Fogel, Priceline: Boyd and Fogel reinvented travel reservations by
charging lower commission fees on reservations, but focused on smaller niche markets
(inns, B&Bs and apartments), eventually spawning Booking.com.
Steve Jobs and Tim Cook, Apple: HBR points to Apple as an example of “dual
transformation”: Jobs innovated on original Microsoft products while also building a
software ecosystem. Cook has extended on Jobs’ vision, maintaining a focus on innovation,
software and brand loyalty.
Mark Bertolini, Aetna: Bertolini is known for his realistic management approach in the
healthcare industry. He says his goal is to build strategies around a realistic vision of the
future.
Kent Thiry, DaVita: Thiry managed to take a bankrupt company and turn it into a thriving
business through firm core values that included “service excellence, teamwork,
accountability and fun,” according to Harvard Business Review.
Satya Nadella, Microsoft: Nadella started at Microsoft in 1992 and worked his way up the
corporate ladder, eventually running the business’ cloud computing efforts, which landed
him the executive position.
Emmanuel Faber, Danone: Faber started out as an architect for Danone and earned the CEO
job after he helped develop the company’s vision to turn the company into a sustainable
health and nutrition company.
Martin Luther King, Jr. exemplifies a transformational leader because he built follower
confidence, challenged taken-for-granted assumptions, developed follower needs and
upheld high moral values.
Oprah Winfrey is also classified as a transformational leader by the authors due to her vision
and ability to transform any venture she embarks upon.
Transformational leadership may sound admirable, but it has some disadvantages. It can be
ineffectual at some stages of business growth and may not take root in a bureaucratic
environment. If there is no management structure already in place, transformational
leadership is not equipped to create one.
So, they are Very well-organized and expect their followers to be creative
They are Team-oriented and expect that followers will work together to create the best
possible results
They are respected, and in turn respects followers
They act as coach of the team. He or she provides training and motivation to reach the
desired goals
They Responsible for their team, but also instills responsibility into team members
They command respect through rapport and a personal influence
So there are Five major personality traits have been identified as factors contributing to the
likelihood of an individual displaying the characteristics of a transformational leader.
They are Extraversion, Neuroticism, Openness to experience, Agreeableness and
Conscientiousness. Let us understand these in detail.
Neuroticism
Neuroticism generally gives an individual an anxiety related to productivity which, in a group
setting can be debilitating to a degree where they are unlikely to position themselves in a
role of transformational leadership due to lower self-esteem and a tendency to shirk from
leadership responsibilities.
Openness to experience
Creative expression and emotional responsiveness have been linked to a general tendency
of openness to experience. This trait is also seen as a component of transformational
leadership as it relates to the ability to give big-picture visionary leadership for an
organization.
Agreeableness
Although not a trait which specifically points to transformational leadership, leaders in
general possess an agreeable nature stemming from a natural concern for others and high
levels of individual consideration.] Productivity and idealized influence is a classic ability of
individuals who possess agreeability.
Conscientiousness
Strong sense of direction and the ability to put large amounts of productive work into tasks
is the by-product of conscientious leaders. This trait is more linked to a transactional form of
leadership given the management-based abilities of such individuals and the detail oriented
nature of their personality. Results suggest that transformational leaders might give greater
importance to values pertaining to others than to values concerning only themselves.
1.5 Traits
So by now You might think you know what a "transformational leader" is. But it's entirely
possible you've never even met one. Let us look at the essential qualities of this type of
leader, to help you determine how to apply the concept to your own life and leadership
experience.
Among other talents, the world's best leaders — in any context — excel in challenging
people's preconceived notions. They don't need the world's most robust vocabulary, but
they do need the oratory skills to help people ask old questions in new ways, or ask entirely
new kinds of questions about the work they do and the world in which they do it.
An excellent piece of advice from the academic community is to solicit ideas from your team
beforehand. You can name the theme or general objective of the next meeting or get-
together, and encourage team members to draw up some thoughts on the subject. They
could even submit anonymously using an online form. Then, come meeting time, you won't
be broaching a brand-new topic, and your colleagues will already have spent some time
ruminating on it. The conversation — and the valuable ideas — should come much more
easily.
Leadership at Apple inspires its followers not just by introducing new products, but also by
touting the opportunities technology unlocks in the creative, educational and medical
communities. The public sector, too, needs leaders who can generate real enthusiasm: not
more reactionary politicking, but instead a cohesive vision for a more inclusive social fabric.
Leaders need to tell "big stories" — no matter who they are.
Even if not everybody pictures a "great leader" precisely the same way everybody else does,
we all have a similar idea of what integrity looks like. If transformational leaders are in the
business of changing minds, there's a slim chance they're going to succeed if they don't
represent somebody worth emulating.
In word, deed and appearance, transformational leaders must exude confidence, kindness,
openness and rationality in equal measure.
1.7 Disadvantages
Adolf Hitler may be the most extreme example of a negative transformational leader. He
offered a vision, appealed to the values of his people, and was quite charismatic. The
outcome he eventually achieved, however, led his people away from moral betterment.
The top advantages and disadvantages of transformational leadership show us that leaders
using this method can take teams to new heights or bigger lows. There must be a certain
morality in place to pursue a shared vision for everyone if this leadership style is to succeed.
If that vision is not shared, or if followers lose their faith in the leader, then there cannot be
success.
By boldly speaking shared purpose and goals, leaders are committing to do things differently
and prioritising organisational growth and functional capability. They are poised to sustain
excellent performance to ensure that their companies survive and thrive and adapt to the
changes in the market and business trends.
While the context of leadership and management changes, the organizational objectives
and missions do not change. They serve as the foundation of high-performance companies.
Utilizing the appropriate approach to keep the team engaged, motivated, and productive is
the only way to fuel deep commitment. Skills training and continuous learning are necessary
to ensure valuable outputs.
Fourth, by Leading by example- they respond, they recover and they thrive
To become influential leaders of tomorrow, it is essential to understand that any crisis has
three characteristics- it demands a response. It brings unprecedented impact, and it tends
to unfold in a surprising, unordered fashion.
Transformational leaders display the skills to address the situations and sustain continuity.
They learn the trades and review all the circumstances, using previous learnings and
benefits of leadership training as they navigate through this VUCA world. They quickly
recover from the surprising events of the new normal and emerge stronger. Lastly, they are
more prepared to thrive and shape the “new normal” work culture.
1.9 Conclusion
So, we can see that one of the best uses of this leadership style is in an organization that is
outdated and requires serious retooling. It is also a perfect match for a small company that
has big dreams and wants to change and adapt to get there. In both of these examples, the
board of directors can bring in a transformational leader who will change the structure of
the organization and also motivate the current workers to buy into the new direction.