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an icmr-iipm think tank publication - Cycbth.org

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INTERNATIONAL COLUMN<br />

WHY IT WORKS AND<br />

HOW IT WORKS<br />

TRANSFORMATIONAL LEADERSHIP IS A<br />

RELATIONSHIP-BASED APPROACH TO LEADERSHIP,<br />

WHEREBY LEADERS FOCUS ON EMPLOYEE NEEDS<br />

RONALD RIGGIO<br />

Leadership Professor, Claremont Institute, USA<br />

Tr<strong>an</strong>sformational Leadership: What it Is, Why it<br />

works, <strong>an</strong>d How to develop It. If there were a<br />

form of leadership that could motivate workers<br />

to high levels of perform<strong>an</strong>ce <strong>an</strong>d commitment,<br />

<strong>an</strong>d also develop workers’ potential, wouldn’t you<br />

w<strong>an</strong>t to know about it? Or, better yet, implement it?<br />

Enter tr<strong>an</strong>sformational leadership.<br />

Tr<strong>an</strong>sformational leadership is a relationship-based<br />

approach to leadership, whereby leaders focus on employees’<br />

individual needs <strong>an</strong>d motivate them. Tr<strong>an</strong>sformational<br />

leadership puts the employees’ intrinsic motivation<br />

at the heart of its theory.<br />

THE ELEMENTS OF<br />

TRANSFORMATIONAL LEADERSHIP<br />

Tr<strong>an</strong>sformational leader has four unique qualities:<br />

1) Idealized Influence: The tr<strong>an</strong>sformational leader is<br />

a role model for its team. This may relate to the leader’s<br />

persever<strong>an</strong>ce, abilities, or other aspirational qualities.<br />

While much of this is perception based, it is tied into the<br />

leaders’ example, such as a willingness to take risks, a<br />

desire to do the right thing, or consistency.<br />

2) Inspirational Motivation: The tr<strong>an</strong>sformational<br />

leader inspires his or her followers. The leader provides<br />

a compelling purpose <strong>an</strong>d vision for the <strong>org</strong><strong>an</strong>ization,<br />

while simult<strong>an</strong>eously fostering a sense of enthusiasm<br />

<strong>an</strong>d optimism. Team members feel involved in making<br />

the vision a reality.<br />

3) Intellectual Stimulation: Empowerment is a key<br />

aspect of tr<strong>an</strong>sformational leadership. Followers feel<br />

like they make a difference <strong>an</strong>d their contributions are<br />

valued. The tr<strong>an</strong>sformational leader encourages followers<br />

to question assumptions or reexamine paradigms.<br />

As a result, all levels of the <strong>org</strong><strong>an</strong>ization foster <strong>org</strong><strong>an</strong>isational<br />

breakthroughs.<br />

4) Individualised Consideration: Followers are developed<br />

into leaders of their own through active coaching<br />

or mentoring by the tr<strong>an</strong>sformational leader. Through<br />

these individualized development pl<strong>an</strong>s, each individual’s<br />

capacity is enh<strong>an</strong>ced over time. With the accumulated<br />

growth of individual capacities, the <strong>org</strong><strong>an</strong>isational<br />

capacity is taken to new levels.<br />

These individual leadership components also integrate<br />

with m<strong>an</strong>agement, <strong>an</strong>d as such tr<strong>an</strong>sformational<br />

leadership is differentiated from tr<strong>an</strong>sactional leadership.<br />

Tr<strong>an</strong>sactional leadership is based on the exch<strong>an</strong>ge<br />

of rewards for expected perform<strong>an</strong>ce. It involves identifying<br />

what needs to be done by offering explicit value<br />

for one’s accomplishments. Tr<strong>an</strong>sactional leadership<br />

emphasizes more extrinsic motivation, while tr<strong>an</strong>sformational<br />

leadership enh<strong>an</strong>ces the intrinsic, or inner,<br />

motivation of followers.<br />

Tr<strong>an</strong>sformational leadership goes well beyond tr<strong>an</strong>sactional<br />

leadership. It inspires followers to buy into the<br />

shared vision <strong>an</strong>d goals, encourages them to be insightful<br />

problem solvers, <strong>an</strong>d at the same time, develops follower<br />

leadership through coaching, mentoring <strong>an</strong>d a<br />

bal<strong>an</strong>ce of providing challenges <strong>an</strong>d support. Nevertheless,<br />

what c<strong>an</strong> one <strong>an</strong>ticipate in terms of the tr<strong>an</strong>sformational<br />

leader’s perform<strong>an</strong>ce?<br />

WHY IT WORKS?<br />

M<strong>an</strong>y studies have found that tr<strong>an</strong>sformational leadership<br />

leads to a number of extraordinary outcomes. How<br />

does it achieve these extraordinary outcomes?<br />

Five of these ch<strong>an</strong>ges are highlighted. First, the follower’s<br />

confidence or self-efficacy is enh<strong>an</strong>ced. This<br />

greater belief in one’s own abilities leads to stronger<br />

perform<strong>an</strong>ce. It occurs on both the individual <strong>an</strong>d group<br />

level, or in other words, the sense of being able to perform<br />

well (what is called “self-efficacy” is enh<strong>an</strong>ced at<br />

the individual <strong>an</strong>d collective levels. Secondly, followers<br />

identify with the leader. This identification is bolstered<br />

both by trust <strong>an</strong>d confidence in the leader. Thirdly, engagement<br />

reaches new heights. The alignment of goals<br />

fosters commitment. Fourth, followers become more<br />

creative. This creativity is spurred by being intrinsically<br />

motivated. This is in contrast to extrinsic motivation<br />

associated with tr<strong>an</strong>sactional leadership. Outside<br />

the box <strong>think</strong>ing is encouraged <strong>an</strong>d exemplified. Fifth,<br />

followers are developed into leaders of their own. Tr<strong>an</strong>sformational<br />

leaders provide coaching <strong>an</strong>d mentoring<br />

count your chickens before they hatch 34 april 2012

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