The Evolution of Leadership, Transformational Leadership, and Transformational Leadership - Term Paper Example

1.0 Introduction The modern worker, also known as the Generation X, is multi-skilled, more aware and better educated, motivated for career enhancement, looks to upgrade himself and is willing to change and to cash on opportunities. The downturn in the economy has made him more amenable but wary. The current work environment is also very dynamic requiring a workforce that is willing to change according to demands of extreme competition from rival firms. The consumerist economy plus the recession has forced companies, both large and small, to re-think strategies. The times demand cost effectiveness and unfortunately companies see downsizing as the easiest way to cut costs. This is where enlightened Leadership comes into play. To survive the difficult times is the test of the strength of leadership. Change has always been a constant but the new requirements are different. In better times change meant a fresh outlook, greater market opportunities, business expansion and global reach; all of which meant that leadership focus was to increase workforce. Today the change requirements need an Inspirational Leadership that can retain the skilled worker, retrain him and make best possible use of this human capital. 2.0 The evolution of Leadership While the most valuable asset of a company is the employees; an equally important resource is the Leader who can use this asset by inspiration and innovation. Traditional leadership ruled by Diktat. Under it subordinates were rewarded for compliance with the leaders’ wishes. The leader preferred experience over training and promoted “Homosocial Reproduction” and hired and sponsored individuals who were similar to him (Ragins & Sundstrom, 1989). Obviously innovation and imagination took a backseat. Parallel to this was the Upper Echelon type of leadership that created a sense of elitism surrounding leadership positions. The top executives responded to situations based on their own interpretation values of the situation through a mixture of personal experiences, personality type and behavior (Hambrick & Mason, 1984). This involved their cognitive base, inadequate values, limited field of vision, selective perception, interpretation, managerial perception, and strategic choice (Hambrick, 2007). The result was a myopic view of employee outputs and inability to cope with external challenges. When these perspectives failed to respond to competition, a new leadership was born. They believed in empowering the workforce and in the power of Team Leadership (Gabrielsson et al2007). This became popularly known as the Servant Leadership and strongly believed that the leader was no the only force that shapes an organization (Greenleaf 1977). Consequently it was envisaged that the role of the servant leader is to empower one’s employees as opposed to using their power to control the workers (Yukl 2006). The outstanding qualities of such leadership were recognition of the importance of a positive leader-follower connection as it relates to a more productive work environment and contentment (Northouse 2007). This was developed by llistening to followers and showing empathy toward them; thereby creating a peaceful, healing environment, community building, and growth (Spears 2004). 3.0 Transformational Leadership People have always looked towards their leaders for inspiration, guidance and recognition. As early as 1960 McGregor had propounded in his human relations theory that all workers look to self actualization. This means that for them realization of their full potential is more satisfactory than the compensation earned for it. Similarly they also look for recognition of their work by their peers as well as their superiors. Transformational leaders Influence their sub-ordinate to do more than they were originally expected to do thereby they subtly gives them room to self actualize. Armstrong (2001) has described four main characteristics of a Transformational Leader and they are: Ethical behavior, Sharing of visions and goals, Improving performance through charismatic leadership and Leading by example. By setting high standards and by becoming a role model a transformational leader inspires confidence in his workers. Sharing of visions and goals enhance the feeling of ownership and encourages participation and performance exceeds the prescribed norms. Avolio et al (1991) state that this type of leaderships instils individualized consideration. The leader gives personal attention to others, making each person feel outstandingly valued. He offers individual consideration thereby providing Intellectual Stimulation. He provides a new look to old methods, inspiring creativity, encouraging others to look at problems and issues from a different angle. His leadership offers and ideal influence and creates inspirational motivation by increasing optimism and enthusiasm. His communication skills generate new possibilities and widens the spectrum; creating a vision and a meaningful role for each individual and thereby gets respect, trust, and confidence from followers. 4.0 Attributes of a successful Leader The level of performance of employees is not just a result of their skills but also the result of motivation each person exhibits. This calls for a determined and encouraging leadership that values the workers as human capital and give it the same respect as given to the financial capital of the organization. In fact this human factor is more important as the core competency of the firm evolves and improves with the active help of this capital. Just as the financial capital is exploited with diligence and care the human capital is utilized through motivation. Motivation is the outcome of internal factors like self satisfaction or the pleasure of satisfactory performance (Hagedoorn and Van Yperen 2003). When leaders are able to offer conditions for this self actualization, performance exceeds expectations and benefits the individual as well as the organization. This affinity is greater than any other loyalty programme. A successful business is about collaboration and stakeholder interests have to be shared, they must be working for the same purpose, otherwise business will come to an end and new collaborations will be formed (Venkataraman 2002). Effectively this means that when leadership share the vision and goals with subordinates and encourage them to participate in them as a team, the outcome is a bond that brings out the best from everyone. The result is all round growth for the individual, the team and the organization. Most leaders bring about changes in the organization and its culture in order to achieve transformation from a dormant, status-quo type to a more dynamic and vibrant organization. This is their objective and they work on it through persuasion (Perloff 2003) and transformational leadership. But this is not easy as there are barriers to the effort exercised through powerful individuals and groups who resist change. There is also a negative perception of change that has to be removed through effective communications. Power politics of vested interests needs to be identified and either manipulated or eliminated for change to proceed smoothly. The balance of power has to be redistributed amongst the constituents to facilitate change. At the end of the day most people are not motivated by being pushed. The motivation comes out of the desire to meet their own needs, to achieve something that holds value for them, to be in control, to be recognized, to have self esteem and the satisfaction of having achieved their personal objectives. A successful leader connects with these human values and excites people with his vision that will help them achieve their personal objectives through his visionary strategies. This involvement must be real and for this the leader has to formulate a vision that takes these aspirations into account. The results of this vision come out in the shape of recognition and reward for all his subordinates. 5.0 Conclusions Amongst the outstanding qualities Leaders must have is a firm conviction of their belief. But this does not make them arrogant. Their flexibility is not a show of weakness and their ability to accept opinions of smarter people is a fine example of their humbleness. They are capable of overriding the opposition while they have the guts to admit their mistake and to make remedies. He will encourage the employees to take pride of ownership of the result of their efforts to sustain their motivation. He aspires to build an organisation that offers hope, love, service, freedom, communication, fun, and trust. He believes that these are the fundamentals to build great and sustainable organizations. He is steadfast in his belief that this is the way to attract the best talent for his company. Leadership is a process that changes the economic equilibrium by disturbing a set of accepted processes through innovative practices. It is a dynamic progression that changes the rules of the game and often creates new events. The ingredients of successful business are coordination, commitment and competencies. Coordination is the key to improving the organization. Commitment is the key to concerted effort to achieve the vision that magnifies the desired improvement. Competencies are the skills that are required to bring about the change. A transformational leader is able to use his influence and charisma to promote these elements and the followers and subordinates respond by raising their standards to new levels. It symbolizes change and a departure from tradition. It challenges and tests conventions and commences upon new variations. It thrives on devising a new future for consumers which they may not even be aware of at that moment in time. Finally the leader enables his workers and subordinates to accomplish these goals. 7.0 Bibliography Armstrong, S. (2001). Are you a "transformational" coach? Journal of Physical Education, Recreation and Dance, 72(3), 44-47. Avolio, B. J., Waldman, D. A., & Yammarino, F. J. (1991). Leading in the 1990s: The four Is of transformational leadership. Journal of European Industrial Training, 15(4), 9-16. Gabrielsson, J., Huse, M., & Minichilli, A. (2007). Understanding the leadership role of the board chairperson through a team production approach. The International Journal of Leadership Studies, 3(1), 22-39. Greenleaf, R. K. (1977). Servant leadership a journey into the nature of legitimate power and greatness. Mahwah, NJ: Paulist Press. Hagedoom, M. & Van Yperen, N. (2003). Do high job demands increase intrinsic motivation or fatigue or both? The role of job control and job social support. Academy of Management Journal, 46(3), 339-349 Hambrick, D. (2007). Upper echelon theory: revisited. Academy of Management Review, 32(2), -343. Hambrick, D., Mason, P. (1984). Upper echelons: the organization as a reflection of its top managers. Academy of Management Review, 9(2), 193-206. Northouse, P.G. (2007). Leadership theory and practice. Thousand Oaks, CA: Sage Publications Perloff, R. M. (2003). The Dynamics of Persuasion: Communication and Attitudes in the 21st Century. Mahwah, NJ: Lawrence Erlbaum Associate Ragins, B.R., & Sundstrom, E. (1989). Gender and power in organizations: A longitudinal perspective. Psychological Bulletin, 105, 51-88. Spears, L. (2004). Practicing servant leadership. Leader to Leader, Fall, 7-11. Venkataraman, S. (2002) Stakeholder value equilibration and the entrepreneurial process Yukl, G. (2006). Leadership in organizations. Upper Saddle River, NJ: Prentice Hall. Read More