Transformational Leadeship in Organizations in the 21st Century

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"Transformational Leadership in Organizations in the 21st Century"

Prepared by: Tanya Wilson 9912771

MBA3 Saturday Group

A paper submitted for the Leadership and Strategy Implementation Course in partial fulfilment of the Master of Business Administration (MBA) Programme

University of Technology, Jamaica

July 17, 2010

Table of Contents

Page

Title Page 1

Table of Contents 2

Introduction 3

Management versus Leadership 3

Are Great Leaders Born or Made? 5

The Role of Transformational Leadership in Organizational Performance 6

Conclusion 7

References 8

Introduction

Globalization along with the increasing dynamics of business today, coupled with the impact of the global economic downturn, has forced organizations to adapt effective and sustainable strategies to remain competitive and achieve above average performance levels. Transformational leadership is one way that organizations aim to become successful in the industry in which they exist. According to the Oxford Dictionary of Business and Management (2009), transformational leadership is defined as: A style of leadership that involves generating a vision for the organization and inspiring followers to meet the challenges that it sets. Transformational leadership depends on the leader’s ability to appeal to the higher values and motives of followers and to inspire a feeling of loyalty and trust.

Simply stated, transformational leadership is creating a vision and inspiring others to buy into this vision resulting in followers’ extraordinary actions within an organization. In this article we will examine the differences between management and leadership, explore the question ‘are leaders born or made?’ and will also discuss the role that transformational leadership play in an organization’s quest for outstanding performance.

Management versus Leadership
The five major functions of management as we have come to know them over time are planning, organizing, commanding, controlling and coordinating. Joseph Rost (1991) defined management as: An authority relationship between at least one manager and one subordinate who coordinate their activities to produce and sell particular goods and/ or services. On the other hand, the role of a leader is considered visionary and focuses on inspiring followers to achieve established goals. Howell and Costley (2006) described management as “doing things right” while leadership is “doing the right things”. Kostenbaum (2002) viewed leadership as having two sides, the strategic side and the personal side, each utilizing the opposite sides of the brain. Having learnt that the left side of the brain deals with logical sequences, rational, analytics, objectivity, and looks at parts while the right side is random, intuitive, holistic synthesizing, subjectivity and looks at the whole, Kostenbaum’s view seems to make perfect sense. While the two words overlap, are sometimes used interchangeably and are considered synonymous, they require separate skill sets and personality traits; managers set out on a quest to coerce while leaders guide and direct people towards excellence. We can go a step further to elaborate on the management role by adding decision making, strategy design and implementation, budgeting and financial or money management; however, even with this inclusion a manager still does not possess the same traits and skills of a leader. Effective leadership, in contrast, includes visioning, inspiring, persuasion, motivation, relationship building, teamwork, listening, counselling, coaching, teaching and mentoring. However leadership is not only about traits and skills but focuses on behaviours displayed and tailored according to situational factors. (Howell & Costley, 2006) Following the introduction to transformational leadership, we can now...
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