Transformational Leadership

Transformational Leadership

6/8/2018

Leadership

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Business

Although each leadership style possesses distinctive advantages, the Transformational Leadership framework has risen in popularity. [1]

Transformational leaders, who are able to motivate their subordinates to achieve positive results, [2] emphasise teamwork and cooperation in their organisation. [3] According to a study by Odumeru and Ifeany (2013), studies show that transformational leaders possess both industrial and interpersonal expertise.

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Transformational Leadership

1. Results of Transformational Leadership

Transformational leadership may lead to:

• Lower turnover rates;
• Higher productivity levels;
• Higher ratings of employee satisfaction;
• Evidence of creative aptitude within a workforce; and
• The achievement of organisational milestones. [4]

 
2. Factors of Transformational Leadership
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Transformational leadership improves employees’ motivation, morale and performance when leaders:

• Align their subordinates’ sense of self to the project’s core objectives, and the organisation’s collective identity;
• Are inspiring role models for their subordinates;
• Challenge their followers to assume responsibility for their work;
• Acknowledge their subordinates’ strengths and weaknesses; and
• Increase overall productivity by assigning followers with tasks that align with their competencies. [5]

Characteristics of Transformational Leaders

Recent studies indicate that transformational leaders possess these key competencies: [6]

1. Charismatic

Transformational leaders behave admirably, display conviction, and assume responsibility for their actions. As a result, their followers respect their values, and regard them as role models.

For instance, Aetna’s Mark Bertolini influences organisational culture and growth by conveying key aspects of the organisation’s vision to key constituencies and stakeholders. Through the use of engaging, dynamic storytelling, Bertolini conveys how Aetna would allow its customers to make better health choices. He describes how its new business model of value-based care would change the nature of health insurance, and how it may eventually replace the traditional fee-for-service reimbursement model.

2. Inspirational

Transformational leaders are able to convey a relatable, motivational vision. They generate optimism about their organisation’s goals, and instil a sense of purpose amongst their subordinates.

For example, Satya Nadella, CEO of Microsoft, has fostered a sense of risk-taking and exploration within his organisation. As a result, Microsoft’s products possess multiple features and improvements, which gives them a competitive edge in their expanding industry.

3. Intelligent

Transformational leaders challenge assumptions, and inspires their subordinates to devise creative solutions to organisational problems. For instance, organisational leaders must address disruptive trends by redesigning their corporate strategy.

According to Scott Anthony and Evan I. Schwartz, many disrupted organisations — such as Blockbuster, to Borders, to Blackberry, to Kodak — did not develop transformational strategies before the emergence of disruptive competition affected their industrial performance. In contrast, leaders such as Reed Hastings of Netflix are vigilant for potentially disruptive trends, and implement effective strategies to address these occurrences.

4. Interpersonal

Transformational leaders attend to their subordinates’ needs and acknowledge their individual contributions. They provide their subordinates with a sense of purpose, which allows their team to achieve higher levels of productivity and growth.

Scott Anthony and Evan I. Schwartz claims that Microsoft’s Nadella is an effective listener who inspires his subordinates through experimental projects, such as company-wide hackathons, and empowers them to develop projects that they are passionate about.

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references

​[1] Tannenbaum, R., & Schmidt, W. H. (1973). How to Choose a Leadership Pattern. Harvard Business Review, 51. pp.162-180.
[2] Robbins S., DeCenzo D., Coulter M., and Woods M. (2016). Management The Essentials. 3rd Edition. London, U.K. Published by Pearson Education. pp. 95.
[3] Warrilow, S. (2012). Transformational Leadership Theory - The 4 Key Components in Leading Change & Managing Change. Retrieved from http://EzineArticles.com/?expert=Stephen_Warrilow
[4] Odumeru, J.A. Ifeanyi, G.O. (2013). Transformational vs. Transactional Leadership Theories: Evidence in Literature. Vol. 2. Issue 2. Nigeria. Published by the International Review of Management and Business Research.
[5] Odumeru, J.A. Ifeanyi, G.O. (2013). Transformational vs. Transactional Leadership Theories: Evidence in Literature. Vol. 2. Issue 2. Nigeria. Published by the International Review of Management and Business Research.
[6] Anthony, S. Schwartz, E.I. (2017). What the Best Transformational Leaders Do. Retrieved from https://hbr.org/2017/05/what-the-best-transformational-leaders-do