This report talks about the organizations which today thus need to constantly innovate and develop novel approaches to withstand the high competition posed by the external environment. The changes in the global economy is yet another factor which is pressurizing the organizations.
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The changes in the global economy is yet another factor which is pressurizing the organizations as well as the leaders to develop and implement effective measures to ensure better and higher employee productivity, inspire innovation and create a favorable organizational environment and culture that supports and encourages employee creativity. Such transformations can be made through effective transformational leadership approach on the part of the management. There is documented evidence on the basis of various studies conducted over the years which point to the fact that transformational leadership plays a key role in bringing about revolutionary changes in the organizational environment and positively affects and influences various key areas such as: organizational productivity, employee creativity, increased job satisfaction, reduction in stress levels of employees and workers, greater levels of team commitment etc., among many others (Bass & Avolio, 1994; Bass, 1985; Dionne, Yammarino, Atwater & Spangler, 2004; Howell & Avolio, 1993). Such studies suggest that transformational leadership can greatly influence and encourage organizational innovation and creativity as well as the development of appropriate and effective skills required to compete in this highly dynamic and ever changing external environment. There are various approaches to initiate and implement organizational change, however regardless of such approaches the key role in influencing such changes is played by the managers and leaders, who are required to influence and guide the employees through such a process. Organizations today are representative of a highly diverse...
This essay stresses that the study of various theories and researches with regard to the impact of transformational leadership on organizational culture and innovation provide an insight into the role of leaders in managing change and influencing the employees to achieve higher performance outcomes. On the basis of the extensive research and studies carried out in this behalf, it can be safely claimed that transformational leadership has a direct impact on organizational innovation, culture, and vision. It instills various characteristic traits among the employees and followers such as a sense of commitment to team efforts.
This paper makes a conclusion that furthermore studies and empirical research have pointed to the impact of transformational leaders on organizations in terms of building a strong and positive culture, indicating that such leadership style provides better opportunities to the leaders to influence their followers and building an environment which is effective in achieving the overall goals. The studies also suggest that there is a direct and positive relationship between transformational leaders and the organizational vision. The transformational leaders encourage innovation and provide a conducive environment to innovate and develop novel ideas to respond to the dynamic and rapidly changing external environment. Such a culture further helps in creation of new and long term visions for the organization which in turn helps it in sustaining its competitive positioning in the market by giving them a competitive edge.
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