Understanding the Transformational Business Theory

December 14th, 2011 by admin Leave a reply »

The transformational leadership theory results in a model that observes various morals in the organization – in terms of several aspects. These are ideal influence, inspired motivation, consideration and intellectual stimulation. The factor of intellectual stimulation, under the transformational leadership approach, implies that the leader encourages creativity and innovation among workers. It also entails new methods of approaching problems from the view of followers, such that support by the leader is required. The element of inspiring motivation refers to the communication of leader expectation of the employees, so that the followers become dedicated to achieving the common objectives, all set by the organization. This model of leadership also puts emphasis on teamwork through motivation, in which the leaders utilizes symbols and emotions to attain desired goals.

Leaders under the perspective of individualized consideration create a suitable environment for followers to express their needs. The leader thus acts as a coach or advisor, by working towards meeting the requirements of his or her followers. In addition, the leader may delegate in order to assist followers in overcoming personal difficulties.

The final component of the transformational leadership theory is idealized influence, also referred to as charisma. It entails characteristics that induce admiration for the leader from the follower(s). The leader thus acts as a role model, and upholds a number of values that are clearly observed, in all of his or her activities. Moreover, the leader’s charisma ensures that trust between them and the followers is established, and sustained, by moral and ethical principles.The model also takes the moral elements of a leader’s character into account; moral basis of the leadership process, as well as value entrenched in the vision of the leader. The approach focuses on the charismatic and affective components of leadership. The model is common today’s organizations, as it emphasizes motivation that is intrinsic in some by nature, as well as developed by others. It is also suitable to the current economic environment, which necessitates regular empowerment and inspiration of workers, in most organizations.

Additionally, this form of leadership perspective focuses on strategic goals and standards. It is different from the transactional form of leadership, because of its principle of connection to generate motivation, between the leader and follower. This approach is applied in various sectors of the organization, especially in recruitment and selection, so as to achieve better team spirit and to make higher quality decisions. The theory is also compared with transactional leadership theory, where measurement considers aspects of laissez-faire, as well as passive and active management.