The paper 'Leadership and Organisational Effectiveness' is a wonderful example of a Business Case Study. Leadership is defined as “ the collective activities that a person in charge of an organization engages in, in order to set direction, build commitment and create alignment in the organization” (Fitzgerald & Schutte, 2010 p. 495). Transformational leadership on the other hand is defined as an integrated and comprehensive approach of guidance adopted by leaders for purposes of bringing change, meaning, and clarity of purpose to an organization (Hacker & Roberts, 2003, p. xvii). More specifically, these writers define it as the “ comprehensive ad integrated leadership capacities required of individuals, groups, or organizations to produce transformation as evidenced by step-functional improvement” (p. 3).
Based on these definitions, there is no doubt there is a strong link between leadership and organizational performance. According to Lieven, Get and Coetsier (1997, p. 416), leaders are responsible for engendering positive impacts on the overall organization by working with teams therein or individual workers. This means that a leader who has a clear vision about how the organization should perform is in a better position to inspire his subordinates to work towards a specifically defined goal.
Notably, transformational leaders develop a clear vision about the organization, before communicating the same to their subordinates. Additionally, such leaders are good at inspiring and motivating their followers towards achieving the identified goals, mission, or vision of the organization. Transformational leadership and its effect on organizational effectiveness According to Lievens et al (1997, p. 415), transformational leaders adopt a style of leadership that borders on a partnership approach. In such a case, the leader and the employees under him work together in a manner that brings transformation into the organization, to the leader, as well as to the workers.
Fitzgerald and Schutte (2010, p. 495) share the same opinion and observes that transformational leadership creates an understanding of the needs presented by the employees by first establishing good connections with them and later helping them reach their potential in the organization. Such a form of leadership also ensures that the vision of the organization is communicated to the employees in an inspiring manner. Unlike the transactional form of leadership where the leader adopts the role of an overseer usually relegating himself to the roles of issuing commands, orders, and telling the workers under him what to do, a transformation participates in the organization’ s activities usually adopting the role of an adviser and an inspirer.
When such happens, the followers are more willing to buy into his vision voluntarily without being pushed to it. Besides, by the transformational leader’ s attitude and treatment towards the workers, they feel like part and parcel of the organization and are therefore more motivated. This in turn leads to them developing high levels of job satisfaction. From the above observation, it looks like transformational leadership is then more beneficial to the organization, the leader, and the workers than other forms of leadership.
This opinion is supported by the Economist (2006, p. 19), in an opinion article which states that contemporary organizations are “ looking for carrots that will induce workers to stay” rather than “ looking for the right sticks with which to prod the work-shy laborer” . This argument is based on the assumption that people employed in an organization will exercise self-control and self-direction if they understand the organizational objectives guiding them.
However, the Economist (2006, p. 19) observes that the level of achievement attained by employees towards the organizational goals are directly affected by the level of understanding they possess towards the same goals. This then raises the need for transformational leadership, which is ideally supposed to inform employees about the vision, mission, and goals of the organization to take over in contemporary organizations.
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