40334457

Master of Business Administration

Leadership Practice (LPU)

Leading Strategic Decision-Making

HRM11120

Project B
Individual Coursework

AUTHOR:

40334457
Word Count
2442
(Homepage not included)

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Table of Contents 2

1.0 Introduction 3

2.0 Workplace Innovation 3

3.0 Transformational Leadership 4

3.1 Individualised Consideration 4

3.2 Idealised Influence 5

3.3 Inspirational Motivation 6

3.4 Individualised Consideration 6

4.0 Conclusion 7

4.1 Practical Implications 7

5.0 References 9

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1.1 Introduction

This paper is an attempt at the study of transformational leadership impact at

influencing workplace innovation. Studies have examined the link empirically. This
article, therefore, discusses the relationship at both individual and organisational level.
At different perspective, transformational leadership stimulates individual's passions
and drives hence creating a psychological effect that enhances creativity and
innovation. Transformational leadership creates innovation supporting workplace at
the organisational level. The four themes of transformational leadership (Idealised
influence, Intellectual stimulation, Individualised consideration, Inspirational
motivation) are discussed with examples. A conclusion was drawn on the practical
implications and how they are practically applied.

2.1 Workplace Innovation

Research has shown that transformational leadership within organisations is linked

with innovative behaviours in the workplace (Gibson, 2011). Although transformational
leadership is an invaluable link that creates a culture of innovative work performance
within work ecology, it cannot be said to be empirical as much of the research has
been conceptual (Miner, 2000). However, Sarros et al, (2008) and Wolfe (1994)
believe innovation to be a result, precursor to various organisational features such as
transformational leadership. This perspective supports Damanpour & Schneider
(2006) research which asserts that a transformational leaders’ influence creates a
corporate culture for innovation.

The challenge to bring new and improved products, value-added services often foster
the process of innovation in the workplace. The need to maintain market relevance,
increase profit margin and claim market leadership often spurs creativity and
innovation in the workplace. Van de Ven, (1986) defined innovation as the process of
developing and achieving new ideas by employees who engaged in a project within a
given organisation. The above definition spells a list of factors which are; ideas,
people, circumstances and a platform. These factors, therefore, must lead innovation
to help organisation sustain its competitive edge from the workplace to the
marketplace (Sarros et al., 2008). Innovation is a conscious initiation and execution
of ideas or products undertaken as a role by individuals to add value to an organisation
(West & Farr, 1990). Although this definition is very elaborate, Janssen (2000) faulted

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it, that the above description limits innovation to intentional effort just to fulfil
organisations goal.

This research, therefore, defines workplace innovation as the conscious or

unconscious evolution, execution, reviving and remodelling of marketable ideas and
sustaining them. This definition discovers the many aspects, complications and
interrelatedness of innovative work behaviour, from identifying a problem or generating
a sense to executing and nurturing the idea. Dorenbosch et al, (2005) demonstrated
that innovative ideas spring up in the workplace when there is a problem which is work-
related. And this novel, innovative approaches are of immense importance to business
conducts by its leadership (Wipulanusat et al, 2017). Idea generation is followed by
idea capitalisation which Holman et al., (2011) stresses as idea promotion and
therefore requires the influence of a transformational leader to convert the idea to
something marketable. This innovative cycle is complete when an idea is achieved or
executed and has become tangible as a symbol of organisations pride (Hüttermann &
Boerner, 2011). Thus, this interrelatedness is a positive effect of an active link between
innovation and transformational leadership in the workplace (Podsakoff, 1996).

3.0 Transformational Leadership

3.1 Intellectual Stimulation

Some organisations still adopt a traditional form of authority to run while some other
organisations prefer a more engaging style of leadership. Therefore, the type of
leadership available in an organisation is dependent upon the type of organisation that
exists. However, transformational leaders in any given organisation set the right tone
for positive collaboration which is the performance engine for innovative initiatives
(Govindarajan & Trimble, 2013). This perspective correlates with Sarros et al. (2008)
assertion that organisational climate for positive collaboration is a stimulant for
workplace innovation. And the extent of innovative initiative in the workplace is
dependent on the degree of motivation and stimulation employees receive in an
organisation (Mumford & Gustafon, 1988). This view faces the challenge that it might
be challenging to predict innovative behavioural measures in the workplace and
across diverse organisations and industries (Herrmann & Felfe, 2013). According to
Shafie et al, (2013) studies on the relationship between transformational leadership
and innovative work behaviour, it is concluded that the adoption of transformation

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leadership style is the catalyst for innovation in their research of Real Estate
Registration Organisation of Tehran province.

The spirit of collaboration can transform anything. A case in point is Satya Nadella
becoming CEO of Microsoft. He led an annual hackathon, a chance for employees to
step outside their usual jobs and delve into developing new skills by collaborating
across departments and negotiating with ideas. Satya Nadella knew that a way to
stimulate innovative initiatives in employees was by inspiring them to work on projects
that excite their intellects and passions. This level of new engagement in Microsoft
now account for 32% of revenue and have seen to the expansion of its Artificial
Intelligence (AI), developed Learning Tools for OneNote and other cloud services
(Scott & Evan, 2017). Satya Nadella created safe conditions for sharing ideas and
tackling Microsoft old problems in a novel form. Satya encouraged employees to go
beyond conventions and to challenge status quo which resulted in many innovative
initiatives in Microsoft (Carol & Kathleen, 2016).

3.2 Idealised Influence

Individual businesses require impactful transformational leadership to survive.

According to Hall et al. (2015) foresight, being an agent of change and leading by
example are the emblems of a transformational leader that exercises idealised
influence in any given organisation. A case in hand is Bill Gates and the 2002 memo
to all employee involving the launch of Trustworthy Computing. Before 2002, in 2001
Microsoft encountered series of attacks on its products, a worm called “Code Red”
which at the time caused an estimated $2 billion in productivity cost and threatened
the strength and future of the internet (Schwartz, 2012). January 15, 2002, Bill Gates
sent a memo to members of staff and declared a new level of trustworthiness in
computing. He acknowledged the current shortfall from the original vision of high
standard, challenged employees and solicited their full cooperation to pursue their
collective mission, values and beliefs (Gates, 2002). Bill Gates charismatic move to
clarify purpose, direction, honesty and carve out a future path for advancement is a
demonstration of idealised influence in transformational leadership (Preston, 2016).

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3.3 Inspirational Motivation

Transformational leaders are those who strive to activate in their follower’s knowledge,
motivations and skills and inspire them to deploy these variables for the creation of
innovative ideas (Avolio & Bass, 1994). Diane Brink leadership in IBM between 2008-
2015 recorded innovative creations and a shift from conventional infrastructure to
cloud-based services. Transformational leaders like Diane Brink understand that to
take organisations from a steady to innovative phase would require setting ambitious
goals which create a sense of urgency, foresight and roadmap for workplace
innovation. Ambitious goals inspired workplace innovation and placed the organisation
at a vantage point of ultimately achieving it (Nayberg, 2018). Transformational leaders
through inspirational motivation set out a new direction in the workplace, inspires
innovation to support brand position. A similar point of reference is Carter Cast former
CEO of Walmart.com who is now a professor of innovation at Kellogg School. Cast
spurred associative thinking among employees to inspire them to be more creative
and innovation-driven. Cast also created a Red Razorback Award to recognise and
encourage the most innovative staff at their office in California (Hedgecock, 2015).

3.4 Individualised Consideration

This is the degree to which the leader act as a mentor and guide to the follower. This
process involves making interpersonal relationship possible, ensuring persona and
professional development. Bass (1985) pointed that leaders pay close attention to
followers, advise on careers and carefully follow-up on staff progress, delegates
challenging activities to staff, this he refers to developmental leadership.
Transformational leadership with focus on individualised consideration creates a
formidable team of managers and staff both on individual and organisational level
(Breaux, 2010).

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4.0 Conclusion

4.1 Practical Implications

Innovation is hard, it involves venturing uncharted territories and taking risks, financial
risks, and risks which may likely not yield postulated results. Transformational leaders
reposition business, create the strategy for growth and compels innovation in the
workplace.

Transformational leaders understand the simple task of matching members of staff

with the right assignment or challenge. Workplace innovation is induced merely when
staff members are paired with the job that calls their expertise, knowledge and
stimulates innovative thinking (Khalili, 2016). Carter Cast at a time was grooming an
employee to become a general manager, but he found out the employee was not
looking for a sit-down administrative position, he wanted to become the best retail and
e-commerce marketer (Cast, 2018). Cast tries to know employees goal and what they
want to accomplish. Transformational leaders employ the right job design as a tool to
foster workplace innovation. A case in point is job design in Google, where 86% of
staff members are delighted because the workplace enables them to be self-
reinforcing and innovative in thinking (Gillet, 2016). While transformational leaders
employ job design as a tool to stem workplace innovation, Achim et al, (2013) also
believe that transformational leaders motivate staff members to innovative thinking by
having an open conversation to know where they have effortless ability to perform.
Their passion, talents, drives and what they could do even if they are not paid for it.
Transformational leaders appeal to the desires of employees that stimulates
workplace innovation.

Transformational leaders also understand the importance of ensuring employee

engagement as a means of engineering workplace innovation. The story of Kent Thiry
of DaVita formerly Total Renal Care is an inspiring one that spells how a
transformational leader employed employee engagement as an innovative tool. Kent
started by aligning the organisation to a set of values. Thiry with other managers
performed skits dressed as musketeers, he honoured employee feats and emceed
awards banquets. Kent Thiry created a new identity for the firm by adopting the new
name DaVita and awakened demoralised and frustrated employees. DaVita’s
innovation stemming from a transformational leader now accounts for 30% of growth

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in revenue from a company whose market capitalisation was well below $200 million
(Anthony & Schwartz, 2017).

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