Link Between Transformational Leadership and Organizational Performance
Abstract
This paper presents a relationship between transformational leadership and organizational performance. Through some findings, it has been concluded that transformational leadership has positive relationship with the overall performance of organization which could be measured in terms of effectiveness, efficiency, relevance and profitability of the organization. There are, basically, four components of a transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Transformational leadership is a far reach goal for a Nepalese organization.
Introduction to the theme
The theme of my study is 'Link between transformational leadership and organizational performance '. There are mainly two different but very important factors in the theme. Those factors are transformational leadership and organizational performance which can be described as below:
1. Transformational leadership:
The term transformational leadership was first coined by Dowton (1973). Its importance came into light after a classic work provided by James MacGregor Burns in his researches about political leaders. According to Burns, transformational leadership is a process in which leaders and followers promote each other to higher levels of morality and motivation. Transformational leaders help their followers to look at old problems via a new perspective. In simple words, Burns attempted to link the roles of leadership and followers in which a leader tries to get connected with the followers which in turn raises the level of motivation and morality in both. Further, he distinguished between transactional and transformational leadership on the grounds of relationship of leaders and followers. Transformational leaders are also known as visionary leaders. Also sometimes it is termed as charismatic leaders. The point to remember is that all transformational leaders are charismatic but not all charismatic leaders are
This paper presents a relationship between transformational leadership and organizational performance. Through some findings, it has been concluded that transformational leadership has positive relationship with the overall performance of organization which could be measured in terms of effectiveness, efficiency, relevance and profitability of the organization. There are, basically, four components of a transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration. Transformational leadership is a far reach goal for a Nepalese organization.
Introduction to the theme
The theme of my study is 'Link between transformational leadership and organizational performance '. There are mainly two different but very important factors in the theme. Those factors are transformational leadership and organizational performance which can be described as below:
1. Transformational leadership:
The term transformational leadership was first coined by Dowton (1973). Its importance came into light after a classic work provided by James MacGregor Burns in his researches about political leaders. According to Burns, transformational leadership is a process in which leaders and followers promote each other to higher levels of morality and motivation. Transformational leaders help their followers to look at old problems via a new perspective. In simple words, Burns attempted to link the roles of leadership and followers in which a leader tries to get connected with the followers which in turn raises the level of motivation and morality in both. Further, he distinguished between transactional and transformational leadership on the grounds of relationship of leaders and followers. Transformational leaders are also known as visionary leaders. Also sometimes it is termed as charismatic leaders. The point to remember is that all transformational leaders are charismatic but not all charismatic leaders are
References: • Bass M. B, Riggio E. R ,“Transformational Leadership”- A book • Fenwick F. Jing & Gayle C. Avery "Missing Links in Understanding the Relationship between Leadership and Organizational Performance". International Business & Economics Research Journal – May 2008 Volume 7, Number 5. • Hancott D.E. (2005) "Relationship between transformational leadership and organization performance in the largest public companies of Canada". A Dissertation Proposal Presented in Partial Fulfillment of the Requirements for the Degree Doctor of Philosophy, Capella University. • Jandaghi G., Matin H.Z., Farjami A.(2009) " Comparing Transformational Leadership in Successful and Unsuccessful Companies". The Journal of International Social Research, Volume 2/6 Winter 2009 • Kantabutra S. and Gayle C. "Enhancing SME Performance through Vision-based Leadership: An Empirical Study". 16th Annual Conference, 2003, Small Enterprise Association of Australia & New Zealand Victoria, Australia