Transformational leadership: Part 3 (Concluding comments)

The influence of the transformational theory of  leadership is clear since the term “vision” -  an important characteristic of transformational leadership - is somewhat of a fad now. The inspiring nature of transformational theory; where the leader empowers their followers to transcend their self-interests for a greater cause makes it intuitively appealing. Transformational leaders are role models with strong value systems, who want to lead social change through a spirit of cooperation. Perhaps, the biggest strength of transformational leadership is that it is considered to be a process, rather than a characteristic which only a special few possess. Therefore organizations can develop transformational leaders. Finally, the Multifactor leadership questionnaire (MLQ) is an effective tool in assessing the transformational leadership potential of individuals, and can be used for self-development and training.     

Interestingly, some of the strengths of transformational leadership are also its weaknesses. For example, in order to capture the inspiring aspect of leadership, qualities like idealized influence, inspirational motivation, intellectual stimulation etc. are considered to be distinct, but some studies indicate that they could overlap. The distinction between transformational and transactional leadership is also not always clear; in fact leaders are advised to use both styles depending on the situation, although the definition of situation is unclear.

Despite the emphasis that transformational leadership is a process, and not a characteristic it is often discussed as the quality (often the charismatic quality) of the leader. For example, Steve Jobs’s name regularly comes up when we discuss contemporary transformational leaders, but not everyone can be a Steve Jobs.  Similarly, the term “vision” conjures up an image of something of a grandiose scale, which makes it exclusive, and even elitist. Since transformational leaders, at least in the common jargon, are also considered charismatic, there is the potssibility of it being misused. Steve Jobs’s “reality distortion” to influence his employees is now legendary; thankfully he only used this ability to create high quality products. In other words, we tend to think of transformational leadership from the higher end of the scale; something which is the prerogative of top executives who are able to bring in earth shattering changes to their organizations.

Nevertheless, transformational leadership with its strong moral focus and emphasis on -change- is an important leadership theory for our times.  

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Transformational leadership: Part 2

In addition to the full model of leadership discussed in the previous blog, two other influential views of transformational leadership are worth discussing.

Bennis and Nanus (1985)

According to this approach, becoming a transformational leader begins with a deep understanding and acceptance of one's strengths and weaknesses. Transformational leaders then focus on their strengths in positive ways, which fueled by their inherent sense of self-worth, inspires confidence in their followers. Transformational leaders also have a clear vision for their organization, believe in participatory decision making, and focus on social change in their organizations (are "social architects").  By ensuring that their actions and behaviors are always consistent with their vision, they foster a sense  of trust in their organizations. There is a strong moral thread that runs through a transformational leadership style, because it originates from the deeply held values of the leader. Transformational leaders are continually learning, and encourage their followers to develop this passion for personal growth.

Kouzes and Posner (2012)

 

In their best selling book "The Leadership Challenge" (which celebrated its 25th anniversary in 2012), Kouzes and Posner create a model of leadership based on their extensive interviews with over a 1000 middle and senior level managers. Transformational leaders practice the following five principles

1. Leading by example (modeling the way)
2. Inspire a shared vision which is vivid and serves as a guide for action to the followers
3.  Challenge the process (not being complacent, constantly learning)
4. Enable others to act ( believe in teams, collaboration and delegation)
5. Encourage the heart ( believe in relationships and positive reaffirmation of followers)

Based on these five practices they also identify certain commitments that leaders must make. These include clarifying values, fostering collaboration, taking risks etc.

The most important quality that followers look for in their leaders is "credibility" which in turn comprises of honesty, being forward looking, competence and the ability to inspire. The appeal of this approach, which perhaps explains the enduring success of their book is that leadership is considered to be a practice, rather than a personality trait.

Kouzes and Posner discuss their book here.  



References

Bennis, W.G., & Nanus, B. (1985). Leaders: The strategies for taking charge. New York: Harper & Row

Kouzes, J.M., & Posner, B.Z. (2012). The Leadership challenge (5th edition). San Franciso: Jossey-Bass

Northouse. P.G. (2013). Leadership (sixth edition). Thousand Oaks, California: Sage Publications Inc.       

Picture credit (Kouzes and Posner) 
Bennis and Nanus book

Transformational leadership Part 1: The four factors

Transformational leaders succeed in making their employees exceed expectations by transcending their self -interest, by operating from higher order needs like self-actualization, and by experiencing a sense of meaning in their work (Bass, 1985, 1990; Bass & Avolio, 1994). So how does transformational leadership work? The four factors of transformational leadership which forms part of the full range of leadership model (Bass & Avolio, 1994), is a widely used framework to discuss how transformational leadership works.


Factor 1: Idealized influence or charisma . This factor is considered to be the most effective form of transformational leadership. Here the leader is considered a role model, whom employees want to emulate. Transformational leaders are deeply respected and trusted by their followers because of their high moral standards and their unshakeable conviction in their vision for their organization. The influence of the leader here is primarily emotional. Nelson Mandela is one leader who comes to mind while discussing this factor.

Factor 2: Inspirational motivation. Communication is key here. Leaders inspire their followers to be a part of the shared vision for the organization, through emotional appeals to their higher natures. Leaders remind the followers of the significance of their work, and set high expectations of them, all the while encouraging them to achieve the organization's common goals.   

Factor 3: Intellectual stimulation. Problem solving is key in this factor. The leader encourages employees to develop creative and innovative ways to deal with organizational issues or to improve performance.

Factor 4: Individualized consideration. Here the focus is on personal attention to the needs of the followers. Transformational leaders act as coaches and mentors, and provide a supportive environment for employees to achieve their goals.


Transformational leaders use these four factors to achieve performance beyond expectations (Bass & Avolio, 1990).  These four factors can also be used to develop transformational leaders through training (Bass, 1990). Leaders can compare their self-rating on these four factors with those of their employees to identify discrepancies and develop improvement strategies. Alternatively, they could observe leaders they consider high scorers in these four factors, and emulate and adapt their own behaviors accordingly.

The Multifactor Leadership Questionnaire (MLQ), developed by Bass (1985) is the most extensively used instrument to measure transformational leadership (Northouse, 2013). The questionnaire is designed to measure how followers perceive their leader's behavior in each factor.
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References

Bass, B.M., & Avolio, B.J. (1994). Improving organizational effectiveness through transformational leadership. Thousand Oaks, CA: Sage

Bass, B.M. (1985). Leadership and performance beyond expectations. New York: Free Press.

Bass, B.M. (1990). From transactional to transformational leadership. Learning to share the vision. Organizational Dynamics, 18: 19-31.

Northouse, P.G. 2013. Leadership. Sixth edition. Thousand Oaks, CA: Sage

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Transactional leadership versus transformational leadership

The distinction between a transactional and transformational leader is an important one in leadership jargon. Transactional leaders, as the name implies, rely on some form of "exchange" with their followers to achieve the organization's goals. A transactional relationship between the leader and follower is one of mutual dependence (Kellerman, 1984), and therefore the leader must ensure that the followers' needs are being met consistently. Not all transactions are equal, and transactional relationships based on intangible exchanges like trust or emotional bonds are stronger than transactions based on tangible goods and rights (Landy, 1985). Since tangible or lower-order transactions depend on physical resources, a leader loses bargaining power when they don't have the ability to provide such resources. These transactions are therefore dependent on the leader's "position" in the organization. Higher- order transactions on the other hand continue to be in the control of the leader since they are based on intangible exchanges (Kuhnert and Lewis, 1987).  But irrespective of the quality of the transactions, the primary mode of leadership here is through exchange or quid pro quo.

Transformational leadership on the other hand arises from the core values of the leader. These are values considered non-negotiable by them under any circumstances. For example, justice could be considered one such value. Since the vision for the organization arises from the deep personal conviction of the leader, they are able to unite their followers, and even change (transform) them to achieve results beyond expectations (Bass, 1985; Burns, 1978). The personal characteristics of the leader are therefore the crucial elements in transformational leadership, unlike the goods being exchanged in transactional leadership. Charisma is an important but not sufficient component of transformational leaders. Charisma involves  influencing others, but transformational leaders influence with the purpose of achieving a higher moral ground for their followers and organizations. Therefore Adolf Hitler could be considered charismatic, but not transformational.

Transformational leaders by virtue of their core values transcend their self -interests for the greater common good, and are able to influence their followers to do the same. The influence process however occurs through internal transformation of the followers rather than through coercion. The leader is also transformed in the process, and therefore the leader and followers are bound together in creating positive change. Transformational leaders may sometimes use transactional methods, but it is always as part of the larger schema, rather than as their primary form of influence.

Transformational leadership is clearly a theory in tune with the times. Its focus on the mutual transformation of the leader and follower, empowerment rather than control of followers, and intrinsic motivation than external rewards reflects the needs of today's knowledge workers and highly skilled teams. Transformational leadership thus is at the forefront of leadership research today, and will be discussed in greater depth in the following posts.    



References

Bass, B.M (1985). Leadership and performance beyond expectations. New York: Free Press.

Burns, J.M. (1978). Leadership. New York: Harper & Row.

Kellerman, B. (1984). Leadership: Multidisciplinary perspectives. Englewood Cliffs, NJ: Prentice Hall.

Kuhnert, K.W., & Lewis, P. (1987). Transactional and transformational leadership: A constructive/development analysis. Academy of Management Review, 12(4): 684-657.

Landy, F.L. (1985). Psychology of work behavior. Homewood, IL: Dorsey Press.

Northhouse, P.G (2013). Leadership. Sixth edition. Thousand Oaks, California: Sage Publications, Inc.


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Picture credit (transformational)