Tranformational and Authentic Leaders - Coursework Example

Transformational and Authentic Leaders Executive Summary Leadership skill is necessary in enabling a business organization to work efficiently. In order to avoid wasting time, money, and effort in going through the consequences of mismanagement, the study will discuss and elaborate the differences between transformational and authentic leadership style. Either the application of the Transformational leadership style or Authentic leadership style could be both beneficial to the business organization. The effectiveness of using these leadership styles could contribute to the increase the morale of both the leaders and his/her subordinates. Creating a peaceful working environment with the use of either one of these leadership styles could enhance the overall business performance of an organization. There is simply no ground or rules in choosing the best leadership style. To become an effective leader, one should be able to train and develop themselves with the search for the type of leadership skills that works best for them. Often times, choosing the best leadership style depends on one’s own personality, working environment and the members of the team as well as one’s personal choice. Table of Contents I. Executive Summary ……………………………………….. 2 II. Table of Contents ………………………………………….. 3 III. Introduction …………………………………………………. 4 IV. Background of Transformational Leadership Style …….. 5 a. Pros of Transformational Leadership ………… 6 b. Cons of Transformational Leadership ……….. 6 c. Leaders Classified as Transformational Leaders ………………………. 7 d. Ethical Consideration of Transformational Leadership …………………… 7 V. Background of Authentic Leadership Style ……………… 8 a. Pros of Authentic Leaders ………………………. 9 b. Cons of Authentic Leaders ……………………… 10 c. Leaders Classified as Authentic Leader ……… 10 e. Ethical Considerations of Authentic Leadership …………………………….. 11 VI. Conclusions …………………………………………………. 11 References ………………………………………………………… 13 - 15 Introduction The challenge of having outstanding leadership skill among the managers is on the rise due to the tight competition that exists within the domestic and international markets. A good managerial leadership is important since it contributes to the success and profitability of the company. Effective leadership skills can make a big difference within a business organization. Considering that it enhances the business operations, a company could reduce the unnecessary internal conflicts among the stakeholders. A good leadership skill in managers prevents mismanagement and other operational errors due to miscommunication and lack of a structured operational system. The savings that will be derived from establishing good leadership skills could result to increasing revenue generation for the company. Effective leadership plays a critical role in enabling the top management to retain the best talents within the business organization. Failure to have a good leadership within the business organization could result to a lot of dissatisfied employees. Losing these talents has a high price attached to it because of the additional costs of training and developing new employees. Over the years, philosophers have spent their time and effort in developing a lot of leadership theories to enable the managers to have the knowledge of the different types of leadership strategy. This study will focus on Transformational and Authentic leadership styles. In line with the two-leadership style, the author will discuss about its pros and cons, leaders classified as transformational or authentic leaders, and the ethical consideration of both. Background of Transformational Leadership Style Transformational leadership style has four components: charisma or idealized influence, inspirational motivation, intellectual stimulation, and individual consideration.1, 2, 3 Transformational leaders tend to go beyond what is happening around his environment since they have the ability to implement new ideas all the time.4 Often times, these people are flexible with the changes that may occur within the business organization and could easily adapt with the implementation of a new strategic plan to improve the business situation. Personal charisma, a form of a referent power, is an important characteristic of a good leader since it could attract his/her subordinates to cooperate well with the leader.5 According to Bass (1985), transformational leaders possesses not only charisma,6, 7 but also the ability to create vision for future development, insinuate intellectual stimulationi, or to be an inspiration to his/her subordinates.7 Political leaders that use transformational leadership style could use their authority and power to radically reshape the organization with the use of coercive means and destroying the old habits to create a new one. Burns (1978) stated that transformational leadership is about moral values.8 These types of leaders are more concerned about the end-values such as liberty, justice, equality and the overall collective well-being of each individuals.9 In fact, all leaders are actual or potential power holders; however, not all power holders are leaders.10 Pros of Transformational Leadership Transformational leaders are able to internalize a sense of commitment to their goals in such a way that these leaders could easily convert their followers to participate with the high level of commitment; at the same time these leaders could eventually convert the leaders into moral agents.11 The strong commitment coming both parties enable the team to work within the standards of business ethics particularly in doing what is right and avoid the wrong doings. Since transformational leaders are focused on terminal values such as integrity and fairness, the leaders becomes directly involve and are responsible in the development of the organization and its impact on the society.12 Today, a lot of business organizations prefer to use transformational leadership style because the leadership skill extended to the subordinates bring out their creative imagination and best efforts in making the organizational goal attainable.11 It also makes the stakeholder(s) satisfied with their jobs. Cons of Transformational Leadership Transformational leadership style is applicable to limited organizational situations. It is not effective within environment that needs a strict authority to get the subordinates to follow the leader(s). Sometimes, it is still best to mixed the use of other leadership style such as the transactional leadership in order to achieve the best result. For instance, it is best to use transactional style of leadership when punishing any of the team members for work undone or not meeting the pre-determined standard a certain project.14 Leaders Classified as Transformational Leaders Leaders that are classified as transformational leaders are the ones that do not practice positional authority. Instead, these people are committed to train the subordinates to become a leader in their own way by being able to work under less supervision and express themselves freely within the business organization. Thus, effective subordinates are the ones that are capable of self-management, with a strong commitment and courage to meet the organizational goal.12 Kelly (1995) states that the leaders and followers under this type of leadership are equal except for the fact that each of them has a different set of activities played within the organizational group.15 In line with this type of leadership, the team works interdependently with each other as they remain focus towards achieving a unified goal – the business organizational goal. Ethical Consideration of Transformational Leadership Transformational leadership is moral in the sense that it increases the level of human conduct by encouraging the subordinates to do what is ethically right and avoid what is evil as well as ethical aspiration on the part of the leader and his/her subordinates. Transformational leader has to be morally uplifting.16 The positive transforming effect on both parties enables the business organization to achieve the best business performance possible. It morally justifies the leaders’ effort in achieving a value-congruence between the leaders and his/her subordinates. In the process, both are more satisfied emotionally by the end of the day.17 Background of Authentic Leadership Style Authentic leadership style is a positive leadership that is being practiced by genuine, trustworthy, reliable, and believable individuals.18, 19, 20 The practice of authentic leadership style started during the early 2000s coming from the business sector18, 19 and positive organizational psychology21. Among the psychological qualities that authentic leaders should have includes – confidence, hope, optimism, and resiliency that are needed in developing a much greater self-awareness and self-regulated positive behavior among the leaders and his/her subordinates.19 This type of leaders generally possess five distinguish characteristics – purpose, values, heart, relationships, and self-discipline.18, 20 In general, authentic leaders are able to recognize and value the personality, purpose, and potential of each individual.22 These leaders are able to communicate their recognition in such a way that his/her subordinates would feel valued as a unique and special part of the group. This can be done by naturally inspiring, motivating, valuing, and allowing his/her subordinates to grow intellectually by going through a regular communication with the leaders. According to Bill George (2004), leaders that practices authentic leadership must be able to understand one’s purpose, practice solid values, able to lead with heart, establish connected relationship with other people, and able to demonstrate self-discipline.23 In fact, the real essence of authentic leadership is to focus on what is right for employees and at the same time build-up their individual strength. Pros of Authentic Leaders The outcome of authentic type of leadership empowers the whole team within a business organization. Since this type of leadership enables each individual to go through the process of self-reflection and self-awareness, each team members will be able to learn to express themselves and inspires other people along the process.24 Authentic leaders demonstrate ethical behaviors despite living and practicing in a society full of negative media interventions about the lapses in ethical leadership. These leaders demonstrate transparency and speak not only but the truth. This character makes them truly believable and trustworthy. Authentic leadership is contagious, cascading from the very top level of an organization all the way out to the front lines. These leaders lead with a combination of heart and compassion. They care not only for themselves but also to their subordinates. The close personal relationship between the leaders and his/her subordinates improves the outcome of their collective performance since this type of relationship could lessen chronic stress and burnout in the workplace.25 Thus, enabling the business organization to become successful in terms of its business performance. Cons of Authentic Leaders The practice of pure authentic leadership may not be able effective in controlling all the employees within the business or other organization. There is always the possibility that other type of leadership would work better and more effective just like in the case of the military, army, or navy. Leaders Classified as Authentic Leader Leaders classified as authentic leaders are normally those that practice self-discipline by being able to balance their personal and professional lives well.26 The ability to balance one’s own time contributes to a personal resilience and are normally able to sustain a more desirable work performance. Self-discipline makes the authentic leaders more predictable, act consistently, and independently regardless of the working environment or situation they are into. They value relationship building or human connections by establishing a good inter-connection with other people around them. It is easy for them to share their life stories and develop trust and intimacy with their subordinates since these people lead the group with care for themselves as well as with their subordinates. In fact, authentic leaders always act with the good of others in view.27 Authentic leaders are able to function well under all circumstances since they value their beliefs all the time. This belief(s) are rounded on good business ethics. The fact that they demonstrate transparency and speak the truth all the time makes them the best model employee to their subordinates. Ethical Considerations of Authentic Leadership The ethic of authenticity requires the leader(s) to focus on building individual and collective capacity by going developing their subordinates professionally.28 It also requires the leaders to examine the working capacity of their subordinates. Authentic leaders are moral since these people are consistent with their beliefs and values regardless of the challenges they may be facing in the future. The actions that are taken by the authentic leaders are normally based on doing what is right for their team members. Conclusions Both Transactional and Authentic style of leadership has its own benefits to the organization. The similarity between the two types of leadership lies behind the fact that both do not practice strict authoritarian type of leadership. Since both type of leadership enables the leaders’ subordinates to become independent in their working profession, it is likely for us to expect that the adaptation of these practices could contribute a lot in enabling a business organization to experience a more positive working environment which could contribute to the success of the organization’s business performance. There is simply no rule that applies with the type of leadership that will provide the best outcome for the business organization. In fact, leaders should train and develop themselves with the search for the type of leadership skills that works best for them. Often times, choosing the best leadership style depends on one’s own personality, working environment and the members of the team as well as one’s personal choice. In my case, I would prefer to use the combination of both the transformational and the authentic leadership style. The use of these types of leadership highly depends on the situation and working environment I am currently situated. Personally, I believe that enabling my subordinate to become self-sufficient or as a leader in his own way is more effective than using purely transactional or authentic style of leadership. *** End *** References 1 Bass, B.M. (1985) ‘Leadership and Performance Beyond Expectations’ New York: Free Press 2 Bass, B.M. (1998) ‘Transformational Leadership: Industrial, Military, and Educational Impact’ Mahwah, NJ: Lawrence Erlbaum and Associates. 3 Bass, B.M. and Avolio, B.J. (1993) ‘Transformational Leadership: A Response to Critiques’ in Chemers, M.M. and Ayman, R. (Eds.) ‘Leadership Theory and Research: Perspectives and Directions. New York: Free Press. 4 Johannsen, M. (2004) ‘A Short Guide to Transformational Leadership Development’ Retrieved: June 19, 2007 < http://www.legacee.com/ > 5 Posakoff, P.M. and Schriesheim, C.A. (1985) ‘Field Studies of French and Raven’s Bases of Power: Critique, Re-analysis, and Suggestions of Future Research’ Psychological Bulletin. 97: 387 – 411. 6 Weber, M. (1947) ‘Model of Transactional and Transformational Leaders’ Retrieved: June 19, 2007 < http://cbae.nmsu.edu/ > 7 Bass, B.M. (1985) ‘Model of Transactional and Transformational Leaders’ in Johannsen, M. (2004) ‘A Short Guide to Transformational Leadership Development’ Retrieved: June 19, 2007 < http://www.legacee.com/ > 8 Burns, J.M. (1978) ‘Model of Transactional and Transformational Leaders’ p. 20. 9 Burns, J.M. (1978) ‘Model of Transactional and Transformational Leaders’ p. 426. 10 Burns, J.M. (1978) ‘Model of Transactional and Transformational Leaders’ p. 18. 11 Burns, J.M. (1978) ‘Model of Transactional and Transformational Leaders’ p. 4. 12 Homrig, C.M.A. (2001) ‘ Transformational Leadership’ Retrieved: June 19, 2007 < http://leadership.au.af.mil/ > 13 Walsman, Bass, and Yammarino, (1990) in Homrig, C.M.A. (2001) ‘ Transformational Leadership’ Retrieved: June 19, 2007 < http://leadership.au.af.mil/ > 14 Mind Tools (2007) ‘Leadership Styles: Using the Right One for Your Situation’ Retrieved: June 20, 2007 < http://www.mindtools.com/ > path: article 15 Kelley, R.E. (1995) ‘The Power of Followership’ New York: Doubleday, 1992. 16 Burns, J.M. (1978) ‘Leadership’ New York: Harper and Row. 17 Meglino B.M., Ravlin E.C., and Adkins C.L. (1989) ‘A Work Values Approach to Corporate Culture: A Field Test of the Value Congruence Process and its Relationship to Individual Outcomes’ Journal of Applied Psychology, 74, 424 – 432. 18 George, B. (2003) ‘Authentic Leadership: Rediscovering the Secrets to Creating Lasting Value’ San Francisco: Jossey-Bass. 19 Luthans, F. and Avolio, B. (2003) ‘Authentic Leadership Development’ in Cameron K.S., Dutton J.E., and Quinn R.E. (Eds.) ‘Positive Organizational Scholarship’ San Francisco: Berrett-Koehler. Pp. 241 – 258. 20 Shirley, M.R. (2006) ‘Authentic Leaders Creating Healthy Work Environments for Nursing Practice’ American Journal of Critical Care, 15(3), 256 – 267. 21 Seligman, M.E.P. and Csikszentmihalayi, M. (2000) ‘Positive Psychology: An Introduction’ American Psychologist, 55(1), 5 – 14. 22 The Leadership Trust® (2007) ‘Communication Skills’ Retrieved: June 20, 2007 < http://www.leadershiptrust.org/ > 23 George, B. (2004) ‘The Journey to Authenticity’ Leader to Leader, 31, 1 – 5. 24 Covey, S.R. (2004) ‘The 8th Habit: From Effectiveness to Greatness’ New York: Free Press. 25 Maslach C., Schaufeli W.B., and Leiter M.P. (2001) ‘Job Burnout’ Annual Reviews in Psychology, 52, 397 – 422. 26 Shirley, M. (2006) ‘Authentic Leadership: Foundation of a Healthy Environment’ Retrieved: June 20, 2007 < http://www.nursingsociety.org/ > 27 Strarrat, R.J. (2004) ‘Ethical Leadership’ San Francisco:Jossey-Bass. p. 71. 28 Bredeson, P.V. (2005) ‘Building Capacity in Schools: Some Ethical Considerations for Authentic Leadership and Learning’ Values and Ethics in Educational Administration. Fall, 2005. Vol. 4, No. 1. pp. 1 – 8. Retrieved: June 20, 2007 < http://www.ed.psu.edu/ > Read More