perspectives
Innovate the Business
HOW TRANSFORMATIONAL LEADERSHIP REALLY WORKS
The characteristics of transformational leaders, when used
appropriately, represent a leadership model that can be
effective to improve a knowledge-based workplace by
developing and managing intellectual capital within organizations.
Building on the transformational leadership model,
organizations can attempt to continuously innovate and create
new and valuable services or products by applying new ideas and
knowledge. This article adopts a holistic approach to address the
following research question: How can transformational leaders
meet the need for innovative products and services?
The answer to this question lies in a leader’s ability to facilitate
the generation of new knowledge and ideas by motivating employees
to solve organizational problems with increasing innovation.
Moreover, transformational leaders inspire their teams to rethink
problems and challenge their personal attitudes and values. Most
importantly, transformational leaders transform organizations
by attempting to change the basic values, beliefs and attitudes
of employees so that they are willing to perform beyond their
previous level.
Transformational leaders have been posited to be visionary
leaders who attempt to develop a shared and inspiring vision
for the future. They play a critical role in shifting organizations
toward the creation of new services and products. These leaders
contribute to new products and services to meet dynamic market
needs through higher expectations and stimulation for new and
strategic opportunities to meet the needs of customers in emerging
marketplaces.
Unfortunately, while the characteristics of transformational
leaders are positively associated with organizational innovation,
it is somewhat underutilized in organizations worldwide. This
is alarming because numerous empirical studies have found that
there is a direct correlation between transformational leadership
and organizational innovation. Many scholars highlight transformational
leadership as an enabler of innovation. Therefore, leaders
who may not be utilizing the transformational leadership model
– which has been posited as a managerial-based competency for
organizations operating in today’s innovative business environment
– can now explore the virtues of using this leadership model
to improve organizational performance.
An industry task force on leadership and management skills in
2017 found relevant information that may help leaders embrace
transformational leadership. The task force first critiqued top managers
and found them to be inadequate effective leaders. The report
illustrates the weaknesses in leaders, such as failing to develop a
clear vision for the future of their organization. Similarly, a report
on management matters in 2018 illustrated that top managers in
the manufacturing sector scored the least in the organizational
behaviour of people management when compared to two other
areas of operations and performance management. This particular
report highlighted that companies need to enhance influence on
human assets in order to achieve sustained competitiveness.
In both studies, companies were ranked low in almost all dimensions
of people management. After careful review of these findings
from both empirical studies, scholars recommend that companies
must improve their human resources-related practices with the target
of attracting, retaining and promoting their human resources.
Furthermore, the recommendations for effective leadership are to
focus on developing a strategic vision for future strategic initiatives
and organizational innovation. By accepting the challenge of
transformational leadership, leaders may be capable to overcome
their own leadership flaws and lead better in today’s hypercompetitive
environment.
The important aspect that all leaders can learn is that the characteristics
of transformational leaders help employees accomplish
tasks that they would not ordinarily consider as part of their competency.
The challenge for top management executives and leaders
in all organizations is to accept transformational leadership as a
means to address the current gaps in leadership effectiveness and
improve competitiveness in global markets in 2019. n
Mostafa Sayyadi is a senior management consultant, author and
business and technology journalist.
By Mostafa Sayyadi
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Transformational leaders have been posited to be visionary
leaders who attempt to develop a shared and inspiring vision
for the future
HRPROFESSIONALNOW.CA ❚ APRIL 2019 ❚ 43
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