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The Importance of Transformational Leadership During a Company Crisis - Research Paper Example

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Abstract The present study aimed to determine the influence of transformational leadership among organizations in crisis, particularly within the context of Walmart. The SWOT analysis of the leadership of Walmart shows that it remains a challenge for many organizations to effectively implement transformational leadership through capable leaders; specifically, difficulties in carrying out leadership in the workplace may include creating considerable change and dealing with increased resistance from its members…
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The Importance of Transformational Leadership During a Company Crisis
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The Importance of Transformational Leadership During a Company Crisis

Download file to see previous pages... The Importance of Transformational Leadership during a Company Crisis: The Case of Wal-Mart Background of the Study A great deal of research on leadership has been carried out as such concept has been associated with a wide range of factors including the process of decision making, leader-follower interaction, and goal establishment and accomplishment, to name a few (Steane, Hua, and Teo, 2003). The notion that the concept of leadership can make significant contribution for research and development has been widely acknowledged by academicians and organizational leaders alike. Due to the rapid changes in globalization and technological trends, there has also been an increase in the need and attempt of companies to place more efforts in retaining a strong workforce while addressing the complex demands and preferences of their customers (Nielsen, Randall, Yarker, and Brenner, 2008). Because of these concerns, organizations have identified the need to effectively implement leadership, especially as it has been frequently linked to favorable outcomes such as an increase in performance, effectiveness, and commitment as well as improved organizational success. Hence, effective leadership becomes a crucial necessity for any company. Innovation and creativity alone may not be sufficient enough to address both internal and external pressures while the implementation of various policies and practices do not always necessarily take effect unless effective leaders are made. Leaders must possess the values and objectives that are necessary to instigate any needed change while retaining an empowered workforce to help achieve success (Jung and Sosik, 2002). The vision that they establish and the values that they live out and demonstrate to their followers plays a relevant role when such leaders make decisions that will impact the entire organization. Majority of leadership studies have indicated that transformational leadership can be the most effective form of leadership to bring about change in any group of individuals by positively inspiring these people to create the necessary change for their success (Conger, 1999). Leaders who take the transformational approach are generally capable of motivating their followers to embrace such changes, improve their performance, and be prepared to open up to new practices, all for the better of the organization (Avolio, Zhu, Kho, and Bhatia, 2004). Company Background and Description of the Crisis Sam Walton founded Wal-Mart Stores Inc. in 1962, with its first headquarters located in Bentonville, Arkansas. It was first known across the United States as the “largest grocery retailer” and has actually expanded to include a total of 8,500 in 15 countries, with the stores taking a different name. For instance, in the United Kingdom, the stores are known as Asda, while in Mexico, some stores are known as Walmex, while India has taken to the name Best Price (Buerkle, 1999). Among the crises plaguing Wal-Mart include a negative image with regards to how it pays its workers. According to an article published in Bloomberg Businessweek, Wal-Mart has been struggling to improve its reputation because of the low wages it has been known to ...Download file to see next pagesRead More
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