Role of Transformational Leadership in Improving Employee Motivation - Essay Example

Role of Transformational Leadership in Improving Employee Motivation

Executive Summary

Building employee motivation is one of the core workplace challenges within any organization. The paper provides an overview of the use of transformational leadership as an effective leadership style to address the challenge of building employee motivation at the workplace. Two-Factor theory, which is also known as Herzberg’s motivation-hygiene theory, has been used to link the OB concepts with the issue discussed in the paper. Several scholarly sources along with internet sources have been used to support the literature included in the paper.

The review of the literature suggests that employee motivation is a serious workplace challenge because lack of motivation can make companies come across a number of problems, such as, poor employee performance, decreased income and profits, decreased level of employee commitment, poor customer service, increased employee absenteeism, and decreased organizational performance. Employee motivation not only improves overall employee performance but also consequently raises the level of organizational productivity. When employees’ level of motivation is high, they show more dedication and commitment to their jobs, which is the key towards increasing overall organizational performance. The concluding point is that use of transformational leadership within organizations can act as a valuable approach to build employee motivation that consequently reduces employee turnover and increased organizational productivity.

Introduction

As Williams (2010) states, “motivating people to do their best work, consistently, has been an enduring challenge for executives and managers”. This statement shows that building employee motivation is a critical workplace challenge being faced by almost every company and organization of the world. A rise in the level of employee motivation is necessary for managers in order to make employees achieve organizational goals. As Ellis-Christensen (2016) states, “When employee motivation is low, businesses can have a difficult time”. Therefore, it is essential to increase employee motivation because it is related directly with increase in the levels of employee performance and organizational productivity.

All over the world, managers give extreme attention towards increasing employee motivation. The reason is that employee motivation works as a central force that drives organizational performance in today’s market of intense competition. It is a challenge for managers because identifying the factors/needs that can motivate employees of any particular company and taking steps to address those needs is not an easy task. However, it is necessary to come up with a feasible and largely acceptable employee motivation building plan because it not only decreases the risk of high employee turnover but also reaps companies many significant benefits like increased employee commitment, organizational development, resource integration, and improved business processes.

Now the question is that how can employee motivation be improved so that it lasts forever and becomes a part of organizational culture instead of being a short-term improvement. The answer to this question lies in the use of an effective leadership style, such as, transformational leadership style that can inject an inner desire in employees to do their best for their companies. Employee motivation is the combination of three factors that include direction of behavior, level of effort, and level of persistence (Mosley Jr., Pietri, & Mosley Sr., 2011, p. 197). In this paper, the focus will be on finding the solution for the challenge of building employee motivation using transformational leadership style.

Analysis

The workplace challenge of building employee motivation needs to be handled because without employee motivation, companies can and do face many problems like poor employee performance, increased employee turnover, lack of experienced and trained staff, decrease in company’s profits and income, lack of employees’ interest in their responsibilities, poor customer service, and decrease in organizational productivity. All of these issues are directly associated with decreased employee motivation because employees are the main driving force for any organization and when employees are not satisfied with their jobs, their level of motivation goes down, which brings adverse effects on overall organizational performance. A feasible solution to overcome the issue of lack of employee motivation would be to make use of transformational leadership style within organizations because this is the style of leadership that inspires employees and all people associated with the organization to bring a positive change in their thoughts and work approach not only for their individual favors/benefits but also for the benefit of the organization as a whole. “Once you have the right transformational managers in place, you can begin to inspire and motivate your staff” (Root III, n.d.).

Recommendations

Theoretical Approach for Building Motivation

Organizational behavior concepts and theories can be used in association with transformational leadership to overcome the issue of decreased employee motivation. Organizational behavior studies help employees to become good managers, leaders, and entrepreneurs. To deal with the issue of building employee motivation, transformational leadership approach would need to be adopted by the managers because managers are the people with whom employees come in direct contact while fulfilling their job responsibilities.

The use of Two Factor theory plays a significant role in liking transformational leadership approach with the efforts to increase employee motivation. The main concept/theme behind the two factor theory is that certain factors playa decisive and invaluable role in building employee motivation and certain factors can act the other way. The theory can be used as the central theoretical approach to build employee motivation by working on the factors that make employees satisfied with their companies. For a leader or manager, it is vital to have a good knowledge of the needs and behaviors of employees because needs shape individual behaviors in many ways (Harris & Hartman 2002, p. 201). Without having such knowledge, it is very difficult for a leader to inject the sense of responsibility among employees and make their satisfied with their jobs.

Use of Transformational Leadership

Transformation leadership can play a useful role in building employee motivation. It is a leadership style which inspires and motivates employees to work together to cause a positive change in the organization’s system. The four main components of transformational leadership include inspirational motivation, charisma or idealized influence, individualized consideration, and intellectual stimulation. Some key individual characteristics of a transformational leader include commitment and dedication, passion to help others, giving priority to individual benefits, life-long learning ability, and showing enthusiasm towards achievement of individual and organizational goals. Transformational leaders can inspire the employees and can raise their level of self-belief, which is the key for an employee to identify his/her hidden skills and capabilities.

Some of the main areas where transformational leaders are at their best include identifying the needs and concerns of employees, motivating and preparing employees for organizational change, respecting the opinions of employees, and providing them with an appropriate strategy to work on. Myler (2010) states, “Transformational leaders operate on a principle of perpetuating change, so they value progress over stability”. Transformational leaders can convince the top managers and leadership to bring such changes in the employee management system that can help the companies in reducing employee turnover and increase organizational productivity.

Motivation by Compensation

Transformational leaders can support employees’ desire of implementation of employee benefits and compensation system within organization. The reason is that they know that use of a well-structured compensation system is an appropriate way to increase employee motivation. Employees feel satisfied with the companies that provide them with rewards and bonuses upon achievement of goals. Leaders can work in collaboration with managers to design an effective compensation plan, which can help in building employee motivation while considering the limitations of the budget. Employees like their efforts to be praised not only in terms of good remarks but also in the form of rewards and benefits. Through implementation of task-based rewards schemes, employees become competitive, motivated, and passionate to do their best for their companies.

Motivation through Proper Guidance

Johannsen (2004) states, “Transformational leadership is about implementing new ideas; these individuals continually change themselves; they stay flexible and adaptable; and continually improve those around them”. Transformational leaders can guide employees and motivate them to struggle in the right direction. They give value to the interests and concerns of their subordinates and promote a culture of acceptance within the organization.

Nayab (2010) states, “transformational leader treats each follower as a ‘whole’ individual rather than as an employee”. Some of the main individual considerations of transformational leadership include listening to individual’s concerns, ensuring equal workload distribution among the employees, appreciating individual’s efforts for increasing the organization’s effectiveness, congratulating the employees to increase their self-confidence, and undertaking career-counseling programs to help employees’ progress in their careers. It is due to the employee-oriented approach of transformational leaders that employees start feeling satisfied with their jobs, which not only results in improving their individual job performances but also increases the level of organization’s effectiveness.

Motivation through Recognition

An effective leadership is one that not only motivates employees to achieve their personal and organizational goals but also advocates for the rights of employees. When managers/leaders recognize the needs of their employees by introducing and implementing a comprehensive incentives scheme within the company and link it with the individual performances, employees start taking interest in completion of their job tasks, which improves employee efficiency and motivation, as well as reduces absenteeism. “Rewards and recognition should be given as soon as possible after the desired behavior” (Sanow, 2009). Effective leaders can promote a culture of endurance, respect, recognition, and appreciation all of which are needed to ensure the formation of a proper collaborative and motivating working atmosphere within organizations.

No Discrimination

Discrimination is also an issue that leads to poor job performances, decreased motivation among employees, and high employee turnover. Discrimination is a negative factor that leads to decreased employee productivity, decreased employee satisfaction with job and company, and reduced motivation among employees. Transformational leaders can promote the culture of social equity by taking steps to eradicate discrimination of all types within the organization. This would not only make employees satisfied with their jobs but also would set the foundations for an equal opportunity workplace environment.

Conclusion

Summing it up, it is extremely important for the managers of any organization to increase employee motivation in order for the organization to experience improved levels of productivity and profits. Poor employee motivation leads to various problems for organizations, such as, employee absenteeism, high employee turnover, and increased employee dissatisfaction with jobs. Managers need to give the due attention to increasing employee motivation not only to improve employee performance but also to increase overall organizational productivity. Through transformational leadership style, managers can inject a sense of respect, responsibility, and satisfaction among employees, which results in building the level of motivation among employees. Transformational leadership can play a primary role in making employees satisfied with their jobs, which in turn results in increasing the organization’s effectiveness.