Transformational Leadership and Economic Efficiency – Can a Charismatic Leader in an Administration for Care Motivate the Subordinates to Improve the Economic Performance?

Topics: Management, Sociology, Charismatic authority Pages: 2 (537 words) Published: April 11, 2010
Author: Tony Pehrson

Supervisor: Thomas Danborg and Anders Hederstierna

Department: School of Management, Blekinge Institute of Technology

Course: Masters’s thesis in business administration, 10 credits.

Background and Problem Discussion: Skövde Kommun is a public organization and one of many tasks is to provide help and service to the aged and handicapped in the city. This is done through the administration for care. After many years with poor economic performance the politicians in Skövde decided 2002 to restructure the elderly care in Skövde. In January 2004 a new chief administrator was recruited and one of the most important issues was to improve the activities within the administration for care and department for elderly. Something, which was strongly emphasized, was the goal to increase the economic performance and having a budget in balance, i.e. achieve economic efficiency.

The interest for this study was to see if the new chief administrator had the competence, leadership skills and charisma enough to restructure the organization and improve the economic efficiency, i.e. make sure the budget show a surplus. During 2004 and 2005 the chief administrator focused on the restructuring of the organization and strongly emphasized respect for the economic resources.

Purpose: Through a pilot study describe and analyse the concept of Transformational leadership and its impact on economic results?

Method: A quantitative method and the thesis could be viewed as a pilot study, which means that I try my method in one organization and hopefully develop a concept for further research. The measure instrument is a questionnaire, which was worked through with statistical methods to define charisma as a part of the phenomenon. The result from the questionnaire was then compared to the organization’s economic performance.

Theory: Studies on leadership are a large research field and new theories on management and leadership constantly evolve. An...
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