Research has consistently shown that diverse teams produce better results, provided they are well led. The ability to bring together people from different backgrounds, disciplines, cultures, and generations and leverage all they have to offer, therefore, is a must-have for leaders (Ibarra and Hansen 2011: 71).
This blog argues about how effective leadership can lead diverse teams to achieve diverse goals for teams working together. It also describes how different types of leadership which are efficient to develop follower leader relationship successfully. There is a critical analysis which draws a comparison between the transactional and transformational leadership theories.
According to Yukl Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it and the process of facilitating individual and collective efforts to accomplish shared objectives (Yukl, 2010:26). Kouzes and Posner (1987) offered five key practices to be effective as leaders, including elements. For example, Model the way, inspiring a shared vision, challenge the process, enable others to act and encourage the heart (Kouzes, J. & Posner, B. Z.: 2008)
Many authors suggest that leaders can influence followers in ways which can be uniquely charismatic, transactional, or transformational, All these styles are not interdependent on each other. Leaders who are “transformational” cannot necessarily employ charismatic style. Just as “charismatic” leaders may not be “transformational.” It can be argued that their effects on the followers and the surrounding conditions of the leaders suggest clear distinction between the two. However inspiration and charisma are interchangeable operationally. Charisma is described as the ability of the leaders to generate a symbolic power which can develop an emotional attachment in the followers towards the leaders. According to Bass 1985, “Charisma is often defined with respect to how followers perceive and act towards the leader.” (Barbuto, John E.: 1997)
In contrast, Avolio, Bass & Jung, 1999 suggest that transactional leadership is based mainly on “exchanges” between the leader and the followers and followers are rewarded by the leaders to meet specific goals or their performance. It can be articulated that an effective leader is able to recognise and reward the followers on time but still this does not give a chance to the followers to think innovatively due the goals fixed by the leader (Eliyana, A.: 2010). There are literally varied forms of theories and models of leadership and management which include management, relationship, behavioural, situational and traits theories.
R.M. Stogdill: 1948 argues that “A person does not become a leader by virtue of the possession of some combination of traits”. Research suggests that to be a successful leader traits are not necessarily important but right person at right time matters a lot (Maloş, R.: 2011).
The concept of transformational leadership was developed by Burns in 1978. According to Abu Daud Silong, Lussier & Achua, “Combining trait, behavioural, and contingency approaches of leadership, one of the new integrative leadership theories, namely transformational leadership was developed”(Sadeghi, Amir: 2012).Transformational leaders encourage the followers that they should do more than what is expected from them. Transformational leadership is comprised of basically five dimensions idealized influence (attribute and behaviour), inspirational motivation, intellectual stimulation, and individualized consideration (Sadeghi, Amir: 2012).In contrary to this type of leadership the laissez-faire style of leadership this can be attributed due the freewill given to the followers by the leaders with little directions for the task.(Sadeghi, Amir: 2012)
Why is transformational leadership relevant for most organisations in today’s world?
Hofstede 1980 proposed factors for cultural moderator called the individualism–collectivism dimension. Along with it Jung and Avolio 1999 examined the moderating influence of individualism and collectivism on transformational leadership and transactional leadership. Results showed that collectivists working with a transformational leader generated more ideas as opposed to individualists, who generated more ideas with a transactional leader. The results showed that individual differences have different levels of motivation and performance of the followers.
According to culture-fit theory proposed by Kanungo & Jaeger, 1990; Kanungo, Aycan, & Sinha, 1999, the socio-cultural environment such as societal culture can influence individual behaviour .Bass, and Sosik (1995) transactional and transformational leadership to be enhanced by cultural orientation. It can be perceived that transformational leadership has positive effect in collectivistic cultures among allocentrics and that transactional due to rewards and will have a more positive effect in individualistic cultures among idiocentrics (Walumbwa, F., Lawler, J., Avolio, B.: 2007).
References
Barbuto, John E. (1997) “Taking the Charisma Out of Transformational Leadership” Journal of Social behaviour & Personality 12( 3), 689-697 [online] available from <http://web.ebscohost.com/ehost/detail?sid=ac42b8bf-083a-4571-9b9e-2358dcc0e2e8%40sessionmgr10&vid=1&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=1303203 > [20 September 2012]
Eliyana, A., (2010) “Impacts of transactional and transformational leaderships upon organizational citizenship behaviour” Journal of US-China Public Administration, 7 (6), 24-30, [online] available from <http://web.ebscohost.com/ehost/detail?sid=c1602516-d2a4-4ea7-92fa-a1301ec9fd9b%40sessionmgr15&vid=1&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=55070548> [20 September 2012]
Kouzes, J. & Posner, B. Z., (2008) The Leadership Challenge, 4 th Edition, Jossey-Bass
Maloş, R., (2011) “LEADESHIP’S TRAIT THEORIES” Annals of Eftimie Murgu University Resita, Fascicle II, Economic Studies, 215-220, [online] available from <http://web.ebscohost.com/ehost/detail?sid=515fce15-5539-4ffc-99f4-f9bce14ef54a%40sessionmgr4&vid=1&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=78575806> [20 September 2012]
Sadeghi, Amir, Pihie, Zaidatol Akmaliah Lope (2012)”Transformational Leadership and Its Predictive Effects on Leadership Effectiveness” International Journal of Business & Social Science, 3 (7)186-197, [online] Available from< http://web.ebscohost.com/ehost/detail?vid=31&hid=25&sid=e6cef3ba-4728-49b4-b0f9-8930f1dee413%40sessionmgr13&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=74268704 > [20 September 2012]
Walumbwa, F., Lawler, J., Avolio, B., (2007) “Leadership, Individual Differences, and Work-related Attitudes: A Cross-Culture Investigation” Applied Psychology: An International Review, 56(2), 212-230, [online] Available from <http://web.ebscohost.com/ehost/detail?sid=f0730d3f-feb8-4fc3-a374-67ee3cd87bfd%40sessionmgr13&vid=1&hid=15&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=24350291> [20 September 2012]
Yukl, G. (2010), Leadership in Organizations: Global Edition, 7th Edition, Pearson Higher Education