Issues of Transformational Leadership in the Organization - Research Paper Example

?RUNNING HEAD: Issues of Transformational Leadership Issues of Transformational Leadership in the Organization BY YOU YOUR SCHOOL INFO HERE HEREIssues of Transformational Leadership in the Organization Introduction There are many conceptual models related to the most effective style of leadership, from more rigorous and inflexible managers who utilize control tactics to gain employee motivation to more progressive leadership systems. However, each of these different leadership models is not effective in all environments depending on product, organizational structure or even the organizational culture that drives team loyalty. In today’s dynamic world of rapid change and increasing globalization, there should be a leadership format that is more streamlined and useful for all different types of organizations depending on their externalities or internal processes of managing people. This research report will focus on the alleged benefits of transformational leadership style as a potential tool for ensuring higher motivation, less resistance to change, the improvement of organizational culture, and generally gaining more employee commitment. The literature surrounding transformational leadership style seems to be gaining ground as an effective leadership model based on known employee behavior patterns that could effectively serve multiple business environments. It is hypothesized that transformational leadership style can bring significant value-added benefits to a diverse organization over that of other less-progressive styles. What is Transformational Leadership? To understand the potential implications of adopting a transformational leadership model, it is necessary to engage with its dimensions and understand how it applies to a contemporary, diversified organization. Transformational leadership is a progressive style, much like that of a mentor or coach, that inspires others through behavior, policy and attitude. This leadership design engages others to share goals and uses “inspirational appeals of authenticity to focus on the best in people: harmony, charity and good works” (Bass & Steidlmeier, 1999, p.188). In this context, the transformational leader refutes some of the fundamental concepts of management through control or even incentives usage and instead elicits charismatic leadership style that gains ground with creating affiliation and belonging while also raising the emotional intelligence of employees and other staff members. A transformational leader “opens new thinking for fresh possibilities, re-imagines purpose and vision, ignites growth for employees, gives decision-making power, and manages through commitment strategies” (Adams & Adams, 2009, p.17). This leader takes the responsibility for the role of champion toward change philosophy and also teaches others how to make fundamental shifts in their thinking that align the organization toward a unified culture and does this through modeling positive new behaviors (Adams & Adams). In essence, the transformational leader takes on a personal role much like that of a human resources manager with a soft HRM approach that builds confidence, autonomy, and motivation. “Employers consistently mention collaboration and teamwork as being a critical skill, essential in all working environments” (Tarricone & Luca, 2002, p.55). Many of the pre-existing models of leadership, both justified through research and also through practical experience, do not have the ability to gain motivation in employee groups and build a sense of cultural unity. Transformational leaders have a progressive methodology that influences others with persuasive techniques and also by promoting ethical behavior that is consistent for the sake of modeling by others in the organization. This makes the transformational leader considerably accountable for their actions when others in the environment are building concepts of trust and team-based philosophy. Thus, it should be said that the transformational leader is one that focuses on a sort of social inter-dependence in order to gain momentum toward attaining organizational goals. There are elements of human behavior that often act as deterrents when change methods are implemented and many times these resistances are formed by a lack of trust or integrity in their non-committed manager. Transformational style is more flexible and very supportive of employees and their needs and should be a style that promotes individual growth and total organizational participation. Literature Review – The Relevancy In a diverse organization, such as one operating in a multi-national environment with large-scale employee populations, development of a unified organizational culture is difficult, but also necessary in order to facilitate positive customer interactions and attain strategic goals as they have been lain out by executive leadership. For instance, in collectivist cultures, there is an emphasis on group loyalty and a large value of tradition (Blodgett, Bakir & Rose, 2008). Collectivists, such as those who hail from China or some Mid-East countries, have strong collectivist values and tend to place group needs far ahead of individual needs (Blodgett, et al.). In opposite accord, in countries such as the U.S. and the United Kingdom, there is much more individualist mentality in business with a high regard for self-expression and independence. In a culture with diverse employee populations hailing from collectivist and individualistic countries, developing a strong culture of unity is vital for both competitive edge and for overall staff performance. Many of these multi-national companies have a need for project teams that place foreign workers with domestic workers as a matter of practical on-the-job experience or specialized knowledge in a particular business area. The concept of the transformational leader is vital in this type of environment as promoting concepts such as harmony and charity, as identified in this model, are necessary for conflict reduction and generalized communication between diverse staff members. Some in a diversified group will value rewards for their own achievements while others feel group successes should be highlighted and recognized when the group has met organizational or project goals. The role of the transformational leader is to align the organization and model behaviors. There is a valid theory in psychology known as the social learning theory that deals with gaining commitment through behavior modeling. This theory suggests that people learn through observation of various role models on whether or not a behavior is rewarded or punished (Neubert, Carlson, Kacmar, Roberts & Chonko, 2009). For example, a transformational leader working in a diverse project team will generally hold a high status as a mediator and facilitator of communication between group members. This gives them a power and status standing, something necessary to be considered a credible role model under social learning theory (Neubert, et al.). “The visibility and legitimacy of these roles and responsibilities provide managers with positional power and status that increases the likelihood that their behavior is readily observed and reproduced” (Neubert, et al., 2009, p.159). A transformational leader maintains the characteristics of harmony and charity and thus behaves accordingly so that diverse team members can learn similar behaviors effectively when they take a visible role in the project team. With the assistance of executives who supervise the leader or others that understand the transformational model and the human tendency to model behaviors, actions of the transformational leader can be publicly rewarded so that positive staff learning occurs. “Working in business team environments demands much more from employees than the traditional combination of industry-specific knowledge and skills” (Tarricone & Luca, p.57). The authors further point out that in order to maintain competitive edge and gain ground toward reaching strategic goals, problem-solving, communication, interpersonal skills development, and even social skills are necessary to achieve (Tarricone & Luca). By design, the transformational leader maintains all of these skills especially surrounding the social dimensions of collaboration and promoting good works; a form of emotional intelligence production in others. This is why transformational leadership is important in a diverse organization where multiple skills are required in order to find success. Employees and managers are expected to be adept in both their professional function and in more human behavioral-related elements in order to truly develop a collaborative team. A manager that utilizes control methodologies will gain commitment through fear or anxiety production over job security, but will lack interpersonal skills development and other important social skills. The transformational leader takes the role of social moderator seriously, models these behaviors, and thus builds commitment in important areas associated with the social and cultural environment first and foremost. The primary dimension of transformational leadership is the concern of the welfare of others “believing that every individual has dignity and moral standing” (Mutlucan, 2011, p.99). It is a value-based system of leadership where authenticity socially supersedes their need for power and control and instead offers personal characteristics of virtue and morality as a fair and balanced leader (Mutlucan). The complex needs associated with multi-national environments such as collaboration and social skills development are complementary to the transformational leader where power is horizontal rather than top-down and commitment gained through authentic, genuinely-likeable personality development in the leader. Coupled with elements of social learning theory, as identified by the literature, this manager would appear to be a quality fit in virtually any organization that requires team methodology, collaboration, and excess socialization in order to achieve goals. In relation to morality, it is one of the most fundamental behaviors that is elicited by the transformational leader. It is about speaking openly about ethical issues and also developing a sense of empowerment with others to seek justice and fairness (Toor & Ofori, 2009). The moral-based manager utilizes ethical messaging in most of their conversations with employee followers as a means of reinforcing concepts such as customer integrity and loyalty toward the organization. Having the presence of a moral manager helps make others accountable for their actions and also reinforces organizational justice, something required of employees to have a fair and balanced system of reward and punishment to gain their motivation and commitment. By design, the transformational leader maintains all of these attitudes and behaviors associated with ethics and morality. Thus, it maintains the ability to create a positive sense of justice, charity and harmony if modeled properly and consistently. Under the concept of being ethical and fair, transformational leadership is crucial as it relates to creating a sense of belonging within the organization. For instance, under Abraham Maslow’s Hierarchy of Needs, one of the most fundamental needs of individuals is to have an environment where they feel a sense of affiliation and recognition for their accomplishments (Weiten & Lloyd, 2005). In order to get higher performance-related growth such as self-esteem development, it is vital to have a culture of inclusion for employees to be completely motivated and experience self-induced growth in career or skills development. Other existing management models do not reinforce the importance of building a sense of affiliation prior to gaining self-confidence and self-esteem growth in individuals, thus these managers or leaders are missing out on the some of the most primary human behavioral needs. By design, again, the transformational leader maintains harmonious concepts of good works and shared goals, thus establishing the foundation for affiliation in order to gain long-term commitment and a step forward in self-esteem development. Self-esteem development is important for businesses where there is a great deal of customer interaction and team-based needs for special projects or ongoing improvement programs where socialization is commonplace and the norm. Thus, in any environment where affiliation is expected and predicted to be a need for competitive success, the transformational design would seem to be the most effective as it targets cognitive and emotional needs for growth. Growth was already identified as a key concept of transformational leadership design and growth is not just about individual improvement and skills development. Growth can also be a change process that occurs throughout the organization. Consider technology as an example. “The nature of business in today’s marketplace demands firms to interact with their customers and business partners using technology to provide services instantaneously across international borders” (Aziz & Yasin, 2004, p.3). This creates some environments where change is constant in relation to technology where new implementations or systems redesigns to include social networking, cloud computing, or new enterprise resource planning software. Each time these improvements or processes change, there is often resistance to training on these software packages or those who simply value tradition (such as the collectivist) who make the process of building a harmonious effort at transformation difficult and time-consuming. Most of the time, this resistance comes in the form of psychologically-based resistance. In this particular business case, the transformational leader model would seem to be ideal since it already champions change and builds a foundation of trust through behavior and attitude modeling. Inspiring a new vision, an identified role of transformational leader, is working to convince others of the importance of a new change process and showing authentic excitement and compliance as a means of gaining modeled behaviors from followers. As a champion of the long-term vision, reinforcement tactics and an attitude of conformity motivates others and helps them to adopt the vision. In an environment with a great deal of change, several experts in change management identify the complexity and dismay that can occur when resistance is high. Change champions are labeled “undeserving victims of the irrational and dysfunctional responses of change recipients” (Ford, Ford & D’Amelio, 2008, p.362). When employees do not have a leader that is trusted and there is ambiguity about the importance of a new change initiative, the likely result is individualized, psychologically-based resistance that slows progress and can create too high of a cost in training for those who resist. The transformational leader, however, works constantly as a change champion, avoiding ambiguous statements about the vision of a new project and its long-term benefits. They create new thinking to get others to embrace fresh ideas, something necessary to avoid irrational change resistance. Under this concept, it would seem, then, that transformational leadership maintains the ability to assist in removing some of the stained and costly elements of change resistance. Bouckenooghe, Devos & van den Broeck (2009) identify that resistance to change is usually lower in organizations with high participation and high support as well as trust acting as a precondition for building a desire to accept a new change policy or process. Again, the transformational leadership style already considers the elements of trust-building and has this secured as a short- and long-term philosophy. Autonomous working environments builds support and the transformational leader works consistently to build harmony and belonging, thus a supportive leadership model. In all dimensions associated with avoiding change resistance that can legitimately harm budgets across the organization, the transformational leader would seem to be an ideal model in an environment where change is frequent. There is another model in leadership known as the transactional leader, one who gets performance increases through promise of reward. This manager believes in performance-based merits and utilizes the incentive as a marketing tactic, at the micro-level, for ensure they get the job completed (Den Hartog, House, Hanges & Ruiz-Quintanilla, 1999). This leader promotes autonomy only when it has been earned and will even rely on the pay-for-performance model of management in order to gain commitment. However, this type of leadership structure relies too heavily on reward and oftentimes misses the mark on gaining authentic motivation. The organization flatly depends on employee loyalty in order to be successful (Vandekerckhove & Commers, 2004). There is no guarantee that all employees with diverse emotional backgrounds or cultural backgrounds are going to, at the macro-level, be engaged with incentives for authentic and genuine motivation. Again, the transformational leader seems the most appropriate rather than the transactional leadership style since followers are given ongoing opportunities for flexibility rather than being subject to a single set of performance criteria and then waiting for reward as recognition. The transactional leader is often referred to as management by exception, where corrective actions based on leader-follower interventions usually provide the most long-term performance increases (Judge & Piccolo, 2004). However, the key is genuine loyalty that is a dependency for organizational success, something that only the transformational leadership style seems to maintain the ability to produce because of its progressive style and diverse focus on the well-being of others. Managers can utilize reward in excess to drive performance, however they are performing their job tasks simply for the receipt of recognition. Long-term, however, there is no evidence provided that incentive-based motivation has superior benefits especially when it is vital to gain genuine employee loyalty. This situation can be best clarified by using an actual case study in a hotel/hospitality environment. At one four-star hotel, it was once part of the executive programming to create new employee uniform designs periodically with an expectation for employee compliance over the design. Instead, the employees were given options about uniform design and certain once-mandatory elements associated with clothing were removed from the policy. Over the long-term, giving employees the autonomy to select design and certain key wearables improved guest satisfaction and boosted employees’ loyalty and morale in the process (Nelson & Bowen, 2000). In this situation, the changes stemmed from a transformational leader who understood employee attitudes and the dangers of imposing mandatory restrictions on an element that directly impacted their self-esteem: the uniform presentation. This effort at gaining genuine loyalty appealed to their psychological needs, established a sense of belonging as decision-makers, and therefore had macro-level implications related to revenue production and competitive advantage. The key word, it seems, with transformational leadership is authenticity. Loyalty in employee populations must be authentic as must their genuine morale toward accomplishing their job, goal or special project outcome. The hotel example only reinforces that concepts dealing with autonomy, decision-making, and even self-concept can have negative repercussions for businesses that rely on customer revenues. The transformational leader had the insight into employee needs, developed a survey to indicate their satisfaction level on current and future uniform designs, thus building genuine trust and belonging, two concepts already identified as belonging to the transformational leadership model. Sloan (2011) characterizes transformational leadership as a style of engagement where employees not only have ambiguity removed from the job environment, but that employees have their contributions valued and should encourage their own creative inputs. Again, the employee uniform case study reinforces that there should be opportunities for gaining such input and establishing the aforementioned sense of belonging under Maslow’s Hierarchy in order to have genuine and authentic morale and motivation. Thus far the research evidence indicates that transformational leadership has a high volume of micro- and macro-level implications that supersede the effectiveness of many other leadership and management models. Consider the concept of genuine motivation as offered by two professionals in organizational politics: “You can’t motivate other people. You can only influence what they’re motivated to do” (Bruce & Pepitone, 1999, p.28). Many motivational elements are inherent in employee populations depending on their needs and emotional responses to job stimulus and interventions with managers and peers. The transformational leadership design works as a coach or mentor at the individual level, thus working differently with each person to help them grow and develop new skills and accomplishments. This leader does not try to change the environment as a means to motivate, the transformational leader works constantly as an influencer to others by appealing to their needs for personal growth. Incentives are short-term motivators that have little in terms of long-term value for performance outcomes and managing through fear undermines motivation to perform in the long-term (Bruce & Pepitone). The mentoring capabilities or coaching first starts with an individualized needs analysis and then building a forward foundation from there, thus transforming attitudes rather than trying to force emotion through environmental change. Some leadership and management roles force these types of changes on the environment, such as developing new production processes and then demanding compliance. This might be considered transactional leadership, that by reward, or control-based management principles in order to build motivation. However, understanding that motivation, real motivation, is inherent and internalized, the transformational leadership style appears to maintain the most advantages in a manufacturing facility, a service industry, or even hospitality and customer-focused, market-centric businesses. The word transformational would seem to indicate a type of innovation in leadership that is unique from other models in existence. “Innovation is driven by the ability to see connections, spot opportunities, and to take advantage of them” (Bessant & Tidd, 2007, p.6). Many organizational leaders use dialogue about innovation as though it is related to their processes and operational components, linking it with technology or new service delivery. However, innovation should also be linked with the ability to reach employees, psychologically, using more effective methods, thus seeing a connection and taking advantage of it. In the case of the employee uniforms, the group was given a survey to indicate their level of satisfaction about current and future designs before implementing a new dress regime. The survey was an innovative tool to gain real-time, authentic feelings associated with it and then seeing an opportunity to improve long-term customer retention and satisfaction by having more legitimately-motivated workers. The transformational leader model is one of innovation, compelling action through charisma, behavior and attitude that builds the foundation of trust as a primary goal. In a top-down hierarchy, innovation in relation to a transformational leader would be the development of a horizontal system of communications that empowers employees to express themselves openly. It has been identified that other models that use incentives or higher volumes of control cause damage to achieving affiliation in employee groups and gaining authentic motivation to perform or meet strategic goals when they have been communicated. Further, not all organizations have the budgets available to ensure a reward structure and there is the risk of employees becoming too dependent on incentives-based reward structures. From a cost perspective, transformational leadership would avoid high expenditures in training (theoretically) by avoiding change resistance and radically altering the scheme of inclusion and group working to achieve better long-term goals. The transformational adopts a role of power and status, thus serving as a credible and attractive role model for others to model these behaviors, thus building a sense of legitimate authority. No other leader or management model seems to have the ability to promote bona fide loyalty, commitment or motivation since many of these concepts or individualized and inherent. Implications and Critical Analysis What, then, should be considered the primary dimension of transformational leadership, based on the evidence provided, that makes it superior to other leadership and management models currently being used in diverse organizations? It is the legitimacy that this style develops that builds a stronger organizational culture or, at least, better one-on-one interventions with employees that genuinely appeal to their psychological and emotional needs. The elements of employee behavior and the phenomenon of resistance to change has no definitive solution that appears to have been fulfilled through transactional leadership style or a higher authoritarian control system. Today, there are many companies that are looking for benchmarks to improve their best practices in human relations, production, or even customer service, thus they look toward other business and organizational models to gain insight into what might work best for their own organization. The concept of transformational leadership to build legitimacy has many implications for organizations seeking a more progressive and employee-involved system so as to gain more long-term, macro-level gains such as improved customer satisfaction or even international expansion. The idea of international expansion was brought up in the research since it is a reality of business today as companies grow larger and have more capacity for selling products and services to domestic and foreign customers. Expansion usually requires a new methodology for building a unified organizational culture especially when working with, as mentioned previously, collectivist or individualistic employees. By design, the transformational leader works consistently to ensure that there is a sense of affiliation, thus acting as a cultural champion right from the start of launching this model strategy. In a diversified organization with different ethnic and cultural workers, transformational leadership style would appear to have the most short- and long-term benefits for unification. Adams & Adams (2009) had identified that transformational leaders offer decision-making power and champion a new vision or mission. Autonomy is one of the most fundamental needs of most humans as under Maslow’s Hierarchy, humans want to know that they have some sort of meaningful and lasting impact on their environment. A transactional leader does not provide ongoing autonomy or opportunities for feedback, only clarifying a job activity and then laying out the potential reward for meeting compliance-based goals. A controlling leader also does not provide such autonomy. However, autonomy is the fundamental goal of the transformational leader, allowing new opportunities to express unique innovation and creativity as a means to build a sense of affiliation, security and belonging. The difference with transformational style over other existing models is the ability to produce genuine emotional responses from those who trust and believe in the integrity of the leader based on pre-existing experience and ongoing consistency in ethics, morality and mentoring capabilities. The key concept is inspiration, something that other leadership and management models cannot seem to accomplish uniformly in a fashion that would work with all types of organizations and industries. The notion of social learning theory as a valid psychological construct for gaining credibility and support from employees also has implications toward why transformational leadership might be the most valid and appropriate model for gaining performance and loyalty. The idea that a person must be considered credible and attractive in order for there to be effective modeling techniques speaks strongly toward the foundation of transformational leadership design methods. The goal of the manager is to be liked, legitimately, by workers and then remaining consistent with these behaviors for the sake of trust-building and confidence in leader commitment and integrity. Unlike a controlling system often used to gain employee productivity and compliance, there is no sense of consistent reinforcement or no genuine sense of attractiveness or credibility, thus actions would only be theoretically modeled based on the receipt of reward or the avoidance of punishment. Assuming that an organization truly cannot be successful without legitimate loyalty, then there is no more effective leadership style to utilize than the transformational model. Loyalty is built through affiliation, finding a sense of individualized or group-based purpose in the organizational structure, and being afforded opportunities to express their own creativity and ingenuity in decision-making under autonomous working conditions. The notion of harmony and good works consistently reinforces that the social order is of critical importance and thus strengthens, theoretically, the bonds between managers, leaders and co-workers throughout the organization. Such activities raise the emotional intelligence of others in the business when considering their peers or managers, thus improving their social skills development. This has macro-level advantages in multiple dimensions in terms of public image representation, customer service improvements, and even competitive edge over like industries with similar goals or services/products. Conclusions It is the legitimacy and authenticity of transformational leadership style that gives the impression it would be a more valid model for use in multiple industries regardless of the structure that guides it. Where transactional leaders or those with authoritarian values in management maintain positive results in one key area, they lack other dimensions most closely related to human needs and psychology or the rules that govern certain social systems. What was learned about transformational leadership style through the available literature is that it is appealing to the emotional characteristics of workers in nearly all elements of their thought process. For instance, a simple survey under a transformational design gave employees a new autonomy and also decision-making power that brought higher customer-based revenues as a macro-level implication. Such small actions undertaken to show belonging leads to higher self-esteem, as supported by Maslow’s Hierarchy of Needs, thus having significant benefits toward building the concept of genuine loyalty to the organization. None of the literature provided in the research associated with transformational leadership models indicated that it would not be effective in a production facility versus a service-based organization focusing on customer interaction. There was no evidence showing that transformational structure has any long-term problems as it works toward improving change processes, building a more tightly-unified organizational culture, and also aligning the organization effectively by re-imagining strategy and vision. Looking toward potential case studies, to add an unbiased element to the research, in order to identify failures in certain industries as it is associated with trialed transformational models showed no errors or dysfunction. Because of the many benefits that seem to be associated with the transformational model, the original hypothesis that it would be a valid leader model in virtually any type of organization has been supported. Problems stemming from collectivist versus individualistic attitudes continue to cause problems in organizations toward building a more effective and unified culture internally. However, the transformational leader sees beyond these differences and works, through modeled positive behaviors, to show others that such differences and conflicts can be overcome professionally or through individualized coaching. Even in efforts toward building harmony and group involvement, a sense of trust and autonomy should be the micro-level outcome that improves achievement of the project team goal or whatever specific task has been assigned to the diverse work group. In the future, the lessons learned about transformational leadership style will have many personal implications in managing or leading people. It was identified that there are strong psychological mechanisms that drive employee thinking and they seem to legitimately require a champion in order to stay committed to goals or the organization itself. A need for autonomy was clearly identified as was a sense of belonging, however the concept of transformation is to consider how to proactively move forward from belonging and start developing individualized competencies in new areas. This role is much like a social advocate and there are quantitative tools, such as the survey for employee uniforms, to assist in the process if there are key areas of social skills development lacking in the transformational leader. Thus, there are failsafes if a person deciding to adopt this model is not well-versed in all of the complicated steps needed to create charity, harmony and good works with the entire employee population of followers. How transformational leadership appeals to psychology was the most important lesson and can serve as a benchmark, personally, for attempting to build a more unified and competitive organizational culture, especially in diverse multi-national industries. References Adams, William & Adams, Cynthia. (2009), “Transform or Reform?”, Leadership Excellence, 26(11), p.17. Aziz, N. & Yasin, N. (2004), “The influence of market orientation on marketing competency and the effect of internet-marketing integration”, Asia Pacific Journal of Marketing and Logistics, 16(2), p.3. Bass, B. & Steidlmeier, P. (1999), “Ethics, character and authentic transformational leadership behavior”, Leadership Quarterly, 10(2), p.188. Bessant, John & Tidd, Joe. 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