Transformational Leadership

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Transformational leaders have a clear collective vision and most importantly they manage to communicate it effectively to all employees. By acting as role models, they inspire employees to put the good of the whole organization above self-interest. These leaders also stimulate the workforce to be more innovative, and they themselves take personal risks and are not afraid to use unconventional (but always ethical) methods in order to achieve the collective vision.

This form of leadership goes beyond traditional forms of transactional leadership that emphasized corrective action, mutual exchanges and rewards only when performance expectations were met. Transactional leadership relies mainly on centralized control were managers controlled most activities, telling each person what, when and how to do each task Transformational leaders, on the other hand, trust their subordinates and leave them space to breathe and grow. It is a more developmental and constructive form of leadership for both individual employees and the organisation as a whole.

COMPONENTS OF TRANSFORMATIONAL LEADERSHIP

Transformational leadership contains four components

1. Charisma or idealized influence

. Inspirational motivation

. Intellectual stimulation

4. Individual consideration

In addition transformational leaders transform or change their followers in three important ways that together lead to those same followers trusting their leader, performing behaviours that contribute to the achievement or organisational goals, and being motivated to perform at high levels and standards

1. Transformational leaders increase subordinates awareness of the importance of their tasks and the importance of performing them well.

. Transformational leaders make subordinates aware of their needs for personal growth, development and accomplishment.

. Transformational leaders motivate their subordinates to work for the good of the organisation rather than exclusively for their own personal gain or benefit.

Transformational leaders can also be considered as charismatic leaders, where they have a vision of how good things could be in an organisation that contrasts with how things currently are. The clearly communicate this vision to their followers and, through their own excitement and enthusiasm, induce their followers to enthusiastically support his vision. They tend to have high levels of self-confidence and self-esteem, which further encourage their followers to respect and admire them.

Such leaders influence their followers by intellectually stimulating them to become aware of problems in their groups and organisation and view their problems from a new perspective, one consistent with the leader's vision. A transformational leader causes followers to view problems differently and feel some degree of responsibility for helping to solve them.

TRANSFORMATIONAL LEADERSHIP AND ORGANISATIONAL DEVELOPMENT

Numerous studies have shown that transformational leadership

• significantly increases organisational performance;

• is positively linked with long term market share and customer satisfaction;

• generates higher commitment to the organisation from their employees;

• increases employee trust in management and organisational citizenship behaviours (i.e., extra-role work-related behaviours such as conscientiousness, altruism and sportsmanship that are discretionary, not related to the formal reward system of the organization);

• enhances employee satisfaction with both their job and the leader; and

• reduces employee stress and increases wellbeing.

When things go wrong in an organisation, blame is most often laid at the leaders door. In addition to being held responsible for the success or failure of whole organisation, leaders are also held responsible for the performance of the individuals and groups within an organisation. Similarly the high sales performance of another group may be attributed to the exceptional leadership provided by the groups manager. The common belief that leaders 'make a difference' and can have a major impact on individuals, groups and whole organisations has promoted organisational behaviour researchers to devote considerable effort to understanding leadership.

Researchers have focused primarily on two leadership issues

1. Why some members of an organisation become leaders while others do not and

. Why some leaders are more effective or successful than others.

In general, research confirms the popular belief that leadership is indeed an important ingredient of individual, group and organisational effectiveness. Good leaders incite individuals, groups and whole organisations to perform at a high level and achieve their goals. Conversely, a lack of effective leadership is often a contributing factor to dull performance.

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