Leadership Running head: LEADERSHIP THEORIES Leadership Theories 1 Leadership 2 Abstract The concept of transformational leadership describes how leaders persuade followers to set aside selfish pursuits and work toward a collective purpose. Through a combination of vision, appealing group goals, high standards, intellectual stimulation, role modeling, and relationships, transformational leaders are believed to inspire and enhance the performance of their followers. Transformational leadership changes the way followers see themselves from isolated individuals to members of a larger group. Leadership 3 Introduction Nowadays, business environment have become increasingly challenging due to the forces of globalization creating a definitive impact on business practices. Thus, even the expectations of customers are continually changing along with the organizational capabilities and structures of revenue and costs. There is a rapid change and increased competition in the business arena due to a plethora of factors including globalization. This rapid change eventually has resulted in organizations demanding innovation and superior performance from its employees. The capability to improve and innovate continuously is something that very few organizations possess. With an unpredictable economy in existence currently, it is highly significant for leaders to make best use of their abilities and creativity levels and improve their performance and eventually motivate and influence of those that they lead. Indeed, research about transformational leadership is overwhelming giving emphasis on the ideal situation between leadership and management. Under this topic, attributes and principles of transformational leaders are highlighted including their relevance on tomorrow’s strategic environment. Leadership 4 Transformational Theories Transformational theories focuses on the connections formed between leaders and followers. According to Quick, (2008) transformational leaders motivate and inspire subordinates by assisting them to see the importance and higher good of the task. Quick, (2008) further stated that transformational leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards. As a scholar/practitioner the interest in this concept of leadership theory termed transformational leadership is mainly because it describes the ways in which leaders should persuade followers; leaders must encourage followers to set aside selfish pursuits and work toward a collective purpose (Quick, 2008). Through a combination of vision, appealing group goals, high standards, intellectual stimulation, role modeling, and relationships, transformational leaders are believed to inspire and enhance the performance of their followers (Quick, 2008). Transformational leadership changes the way followers see themselves from isolated individuals to members of a larger group. Transformational leaders emphasize the similarity of group members, and reinforce collective goals, shared values, and common interests (Quick, 2008). When followers see themselves as members of a collective group, they tend to endorse group values and goals, and this enhances their motivation to contribute to the greater good (vanDierendonck, 2011). Servant leadership is a relatively new field of research for leadership scholars. Times are changing and so are the views on leadership behavior. In view of the current demand for more ethical, people-centered management, leadership inspired by the ideas from servant leadership theory may very well be what organizations need now (Avolio, 2009). Variables like the productivity of the organization, high levels of job satisfaction, Leadership 5 minimum work stress in followers, and greater degree of commitment from both the organization and the teams are positively influence by transformational leadership and the same has been vindicated in many past research studies like the ones done by Avolio & Yammarino in 2002; Avolio in 2009; among others (Yammarino, 2002) & (Avolio, 2009). Thus, it is very obvious that transformational leadership skills are very vital and important for organizations to align themselves to the changing marketplace and these are crucial for the organization’s constant improvement and innovation (Crawford, 2005). Leadership is considered as the most vital and significant factor with regards to initiation and implementation of organizational transformation. According to research, the entire leadership paradigms are to be transformed if leaders want to engender a constructive influence on the entire organization and its personnel. There is a strong need for change-centered leaders for managing transformation processes in organizations as such leaders highlight the significance of developing a clear vision and motivate followers to follow the vision thus providing a strong motivational force for and bringing about change in the followers. According to Avolio, Gillespie, & Mann, at present innovation and employee well-being are given high priority and so leadership that is concerned with ethical and caring behavior becomes of great importance. Leadership recently has been suggested as a key factor for engaged employees and flourishing organizations; during the past few years, leadership studies have clearly moved away from a strong focus on transformational leadership toward a stronger emphasis the interaction between leader and follower as key elements (Avolio, 2009). It is argued that leaders who combine their motivation to lead with a need to serve display servant leadership. According to vanDierendonck, (2011) servant leadership is demonstrated by empowering and developing people; by expressing humility, authenticity, interpersonal Leadership 6 acceptance, and stewardship; and by providing direction. Transformational Leadership in the Era of Globalization In order to clearly understand what transformational leadership means, it is necessary for one to understand the roles and responsibilities of a transformational leader. Transformation leaders are essentially value shapers, highly creative, and pathfinders. They interpret the purpose of the organization and creatively mold the culture of the organization in such a manner that organizations mark an innovative impact in the business arena. Transformational leaders are determined and consistent and they possess a vision which is so gripping that they are cognizant of their expectations from each and every step, they are convinced and confident about the kinds of culture that the organization needs to possess in order accomplish the purpose and vision of the organization. The culture that the transformational leaders tend to imbibe within the organization is based on the beliefs and values of the organization. Transformational leadership goes beyond legendary practices of transactional leadership which predominantly stress upon aspects like remedial action, mutual exchanges and rewards only in case the expectations of the performance are attained. Transformational leadership is basically about the trust between the leaders and the followers. These types of leaders allow the necessary space and freedom to their followers in order for them to perform and grow. Precisely stated, transformational leadership is more of a developmental and constructive leadership style for both the organization and each of its personnel on a whole (Crawford, 2005). Generally, transformational leadership can be defined as a process of inducing followers to represent specific business’ values and act on certain objectives (Avolio, 2009). In the era of globalization, transformational leaders need to be highly appealing and worthwhile to the values of followers. At all times, it is necessary for them to have the greatest impact in order to fully Leadership 7 motivate followers to perform productively and satisfy the expectation of the business. Through this process, transformational leadership can be considered as important element in raising the level of ethical aspirations and human conduct (Mitchell & Boyle, 2009). In fact, leaders could only influence followers effectively if they could reach shared sense of priority and know the things that are worth doing well. In the field of business, transformational leadership could result to greater profit and market domination. Transformational leadership is a theory trait that modern leaders should have in order to gain an appealing agreement based on the values of followers. Under this leadership, every time the leaders see themselves in win-lose agreement they always try to convert it into win-win situation. Transformational Leadership Transformational Leadership has essentially evolved from preceding forms of leadership and comprises of elements like charisma, situational and transactional forms of leadership. Precisely, according to Parolini et al (2009) there are 4 I’s that constitute the theory of transformational leadership. The first I is Idealized Influence, the second I is Inspirational Motivation, Intellectual Stimulation is the third I and Individualized consideration is the last one. In the following paragraphs, each of these components is explained in little detail. Idealized influence is the extent to which the transformational leader behaves in way that is admired and identified by the followers. Leaders with this trait exhibit conviction stand up for their cause and when necessary and appeal to their followers more at an emotional level. This trait is predominantly about leaders possessing a clear set of values and more about them displaying those values in each and every action of theirs, thereby becoming more of a role model for their followers. This trait calls for an unpretentious trust to be present between the leader and the followers and such a genuine trust gets instituted upon high levels of social and Leadership 8 moral basis. Inspirational motivation is the extent to which the leader expresses a clear vision to his followers in an engaging and motivating manner. Leaders who possess this trait challenge followers with extraordinary standards, communicate positivity about future organizational objectives, and offer meaning for each task to be performed. Followers of this type of leaders are expected to have a strong sense of determination if they are to be inspired and motivated to perform. It is also very vital that this visionary trait of leadership is reinforced by communication skills which essentially permit the leader to articulate the vision with meticulousness and authority in a convincing and cogent manner. Intellectual Stimulation is the third I and one of the four important components of Transformational leadership. This trait is defined as the extent to which the leader experiments with assumptions, and readiness to take risk through soliciting ideas from the followers. Leaders possessing this trait are believed to inspire and boost creativity in their followers. The vision of these leaders offers the necessary structure to the followers for them to understand their association with the leader, the organization, their team members and the organizational goal that is to be accomplished ultimately. Once the followers are clear of the structure and are endowed with the necessary freedom, their creativity would become apparent in their performance. The last component of the transformational leadership is individualized consideration which can be explained as the extent to which the leader takes care of the needs and expectations of each of his followers and takes the role of a mentor and coach by carefully listening to the follower’s needs and concerns. This trait also embraces the necessity for the leader to respect and appreciate individual contributions and achievements of all the members of the team as this would not only educates the future leaders, but also satisfies the individual self-actualization and Leadership 9 self-fulfillment needs (Kaiser et al, 2008). Ultimately, all these would certainly drive the followers to perform better and helps them in growing and achieving more in the organization. This initiative could bring more tangible outcomes in the business such as organizational excellence and exemplary performances. In order to establish transformational leadership, leaders and followers need to maintain an idealized influence or genuine trust among each other (Krishnan 2004). There must be charisma and trust for both leader and follower that is built on ethical foundation and solid moral; another attributes is inspirational motivation whereas leaders need to know how to provide challenges with their followers for greater shared undertaking and goal. Intellectual stimulation assists the followers to generate more efficient and practical solutions to any existing problem (Kark et al, 2003). The vision of a leader should work as a framework to all followers providing big picture on how both of them could effectively overcome any problems along the way. Finally, leaders must have individual consideration especially in treating each follower as individual such as in term of mentoring and coaching. This approach helps new generation leaders to fulfill the individual needs of their followers for selffulfillment, self-actualization, and self-worth. Normally, these attributes encourage followers to have further growth and achievement. Strengths and Weaknesses of Transformational Leadership The end result of effective transformational leadership is performances outdo the organizational expectations. As with any concept or notion to leadership or any other field for that matter, strengths and weaknesses come without question. According to Konorti, (2004) the following are strengths and weaknesses of the transformational leadership. Strengths: This theory is widely researched with reference to famous and renowned leaders. This particular leadership is believed to influence associates at all levels of the organization very Leadership 10 effectively and besides it is known to be strongly highlighting the needs and values of the associates at each and every level. Weakness: The main weakness of this theory of leadership is that it includes too many components that are broad in nature and which in essence perceive leadership to be a personality trait rather than view it as a learnable skill. Conclusion Transformational leadership is not necessarily a personality trait or skill that is possessed by just a few fortunate individuals. Managers can be trained to become transformational leaders with the help of significant positive suggestions for their organization. Managers can be trained to become transformational leaders through individual coaching sessions and also offering them workshops. Great leaders have always known to have clear vision and a sense of right direction for their organization. Being futuristic is very important in order to institute trust in the followers. In any given circumstance, it is very apparent that leaders are honest and if the followers or any single member of the team fails to have trust and confidence in his leader, then such individual(s) or followers fail to get inspired and motivated towards accomplishing the vision and goal of their leader. Leaders need to act steadily with their values and vision and also make their followers cognizant of the same. Wang & Howell (2010) contend that there is a rapid and increasing interest in the field of transformational leadership globally as organizations are realizing the benefits that their organization can gain by using this technique. The need for leaders to completely recognize and appraise the competencies required to become a successful transformational leader is gaining rapid and high importance these days as a result of the rapid changes in the global marketplace in terms of innovation and long-term success. Transformational leadership is a very crucial role to Leadership 11 be played by effective managers because it is the leadership effectiveness which will determine the success of the organization. Overall, transformational leadership gives an impression that participative decision making is based on the agreement between leader and follower. They cannot afford to get into debates since transformational style of leadership offers good model for various cases of solving problems. It is acceptable to all concerned since it provides true consensus in aligning organizational and individual interests (Avolio, 2009). Through transformational leadership, there is greater awareness on what is important and good in elevating followers’ needs for selfactualization and achievement. Indeed, it has capacity to move followers to go beyond their personal self-interests just to deliver what is good for the organization or group. When this leadership is achieved, both leaders and followers will be more satisfied emotionally about their jobs. Furthermore, transformational leaders usually have strong connection with their followers and both of their energies are focused in achieving maximum results with less oversight. Leadership 12 References Avolio, B. J., Walumbwa, F. O., & Weber, T. J. (2009). Leadership: Current theories, research, and future directions. Annual Review of Psychology, 60: 421-449. Boehnke, K., Bontis, N., DiStefano, J. J., & DiStefano, A. C. (2003). Transformational leadership: An examination of cross-national differences and similarities. Leadership & Organization Development Journal, 24(1), 5-15. Retrieved from http://search.proquest.com/docview/226925722?accountid=27965 Bono, J. E., & Judge, T. A. (2004). Personality and Transformational and Transactional Leadership: A Meta-Analysis. Journal of Applied Psychology, 89(5), 901-910. doi:10.1037/0021-9010.89.5.901. Bruch, H., & Walter, F. (2007). Leadership in context: Investigating hierarchical impacts on transformational leadership. Leadership & Organization Development Journal, 28(8), 710-726. doi:10.1108/01437730710835452 Crawford, C. B. (2005). Effects of transformational leadership and organizational position on knowledge management. Journal of Knowledge Management, 9(6), 6-16. Retrieved from http://search.proquest.com/docview/230331145?accountid=27965 Dionne, S. D., Yammarino, F. J., Atwater, L. E., & Spangler, W. D. (2004). Transformational leadership and team performance. Journal of Organizational Change Management, 17(2), 177-193. Retrieved from http://search.proquest.com/docview/197608780?accountid=27965 Gillespie, N. A., & Mann, L. (2004). Transformational leadership and shared values: The building blocks of trust. Journal of Managerial Psychology, 19(6), 588-607. Retrieved from http://search.proquest.com/docview/215868010?accountid=27965 Leadership 13 Kaiser, R. B., Hogan, R., & Craig, S. (2008). Leadership and the fate of organizations. American Psychologist, 63(2), 96-110. doi:10.1037/0003-66X.63.2.96 Kark, R., Shamir, B., & Chen, G. (2003). The two faces of transformational leadership: Empowerment and dependency. Journal of Applied Psychology, 88(2), 246-255. doi:10.1037/0021-9010.88.2.246 Kent, T. W., Crotts, J. C., & Azziz, A. (2001). Four factors of transformational leadership behavior. Leadership & Organization Development Journal, 22(5), 221-229. Retrieved from http://search.proquest.com/docview/226922119?accountid=27965 Kirkbride, P. (2006). Developing transformational leaders: The full range leadership model in action. Industrial and Commercial Training, 38(1), 23-32. Retrieved from http://search.proquest.com/docview/214105353?accountid=27965 Konorti, E. (2008). The 3D transformational leadership model. Journal of American Academy of Business, Cambridge, 14(1), 10-20. Retrieved from http://search.proquest.com/docview/222866477?accountid=27965 Krishnan, V. R. (2004). Impact of transformational leadership on followers influence strategies. Leadership & Organization Development Journal, 25(1), 58-72. Retrieved from http://search.proquest.com/docview/226926066?accountid=27965 Mitchell, R. J., & Boyle, B. (2009). A theoretical model of transformational leaderships role in diverse teams. Leadership & Organization Development Journal, 30(5), 455-474. doi:10.1108/01437730910968714 Parolini, J., Patterson, K., & Winston, B. (2009). Distinguishing between transformational and servant leadership. Leadership & Organization Development Journal, 30(3), 274-291. doi:10.1108/01437730910949544 vanDierendonck, D. Servant Leadership: A Review and Synthesis. Journal of Management July Leadership 2011 vol. 37 no. 4 1228-1261 Quick, J.C., Cooper, C.L., Gavin, J.H., & Quick, J.D. (2008). Managing Executive Health. Cambridge, UK: Cambridge University Press. Smith, B. N., Montagno, R. V., & Kuzmenko, T. N. (2004). Transformational and servant leadership: Content and contextual comparisons. Journal of Leadership & Organizational Studies, 10(4), 80-91. Retrieved from http://search.proquest.com/docview/203138839?accountid=27965 Wang, X., & Howell, J. M. (2010). Exploring the dual-level effects of transformational leadership on followers. Journal Of Applied Psychology, 95(6), 1134-1144. doi:10.1037/a0020754 14