Transformational Leadership 1

Transformational Leadership

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14th November 2021

Introduction 2
 Transformational Leadership 2

Charismatic Leadership 3

Transformational Leadership 4

Other Leadership styles and Transformational Leadership. 6

The Four I’s of Transformational Leadership 7

Leadership in Digital Age 9

Conclusion 10

Concluding Points 10
 Transformational Leadership 3

Introduction

Leadership is an ability that very few people have. It is more than being authoritative. It is the

genius of an individual to have their influence over others and help others become better

versions of themselves. Throughout centuries there have been many most outstanding

leaders, and each has shown their strengths and capability. There are different leadership that

has been developed through the ages, like autocratic- where the leader believes that they are

the most competent person and their employees would do what they say. There is a

democracy where the employee's opinions are taken into consideration before coming to a

decision, and so on. In this report, however, we will discuss the charismatic leadership

approach and the transformational approach. To explain the points in a better way, the

discussion will draw examples and from the leadership styles used by Bill Gates and Elon

Musk. Further, the report will shed light on the four I's of transformational leadership and

explain how they are evolving in the age of digitalization.

Charismatic Leadership

Charisma is a rare quality to help you get ahead at work or in your career. Elon Musk, for

example, is a master of using this valuable trait to his advantage. He's proven that charisma is

one of the most valuable qualities a person can have if they want to be a leader and change

the world. Elon Musk's passion for his vision- to make the world sustainable by transitioning

the world to sustainable energy—is an integral part of making him a charismatic leader. His

ability to communicate this vision to the world is well-recognized, not only in the business

community but all around the globe (Maamoun, 2021). Deeply passionate about his vision,

Musk clarifies that working towards his vision of sustainable energy is the motivation behind

all of his business endeavours. His ideas of innovation are changing the outlook of the world

and the general perspective that we have. He has founded multiple companies shaping the
 Transformational Leadership 4

future of transportation, energy, and space exploration. He is ambitious and a naturally

charismatic leader, with a positive outlook and optimism for the future (Vance, 2015).

While a good leader is someone who can get people to do what they want them to do, a great

leader will only become an exceptional leader through the process of growing the individual

giving him or her opportunities to accept the responsibility, which builds confidence and

exposes him/her to new learning experiences. For example, Bill Gates has been recognized as

an innovator and a charismatic leader by many generations. He is the co-founder and Chief

engineer of Microsoft software, the world's leading personal computer software company

(Shah and Mulla, 2013). A self-made billionaire, he became a household name with his

influence in shaping today's modern world. Bill Gates has had the most impact on our world

through invention or innovation. Gates was always determined to be the first in his field in

innovating products and bringing change. Even today, he continues to bring in innovative

changes (Corte, 2020). He created the Windows system that has dominated the software

industry for years. The influence that he has over the world speaks volumes about his ability

as a leader and decision-maker.

Transformational Leadership

Transformational leadership is a style of leadership that helps a person or a team fully

embrace an organization's vision and values. It includes several steps, including taking action,

leading change, focusing on the future instead of the present, motivating people, tapping into

creativity, communicating effectively, recognizing individuals after they've made

contributions, handling conflicts well - and much more (Hamdani, 2018). The contemporary

business environment is characterized by dynamic, fast-paced organizational cultures that are

prone to constant changes. The competitive nature of the modern business world necessitates

organizations to be proactive rather than reactive in their leadership approach. Organizations

 Transformational Leadership 5

need transformational leaders who possess outstanding skills in various leadership areas

(Seijts and Gandz, 2018).

During his time as the CEO of Microsoft, Bill Gates emphasized the importance of ethics and

the worth of an individual employee to his company. To facilitate a healthy working

relationship between employees, he arranged for them to work in teams. It reduced barriers

between workers of varying levels and allowed them to unite more closely. Microsoft

believes in promoting the welfare of its employees (Raffo and Williams, 2018). Gates was

constantly training his employees on how they could better themselves while at work.

Furthermore, to keep up with the technological changes in the industry, Gates sent some of

his best brains to different parts of the world to look into technologies that can improve

software development before he rolled out new programs for Microsoft. Gates built an

outstanding reputation as a leader that knows how to offer a motivating and rewarding

working environment. His portrayal of personal traits such as determination and pursuit of

excellence gave birth to Microsoft's success. Gates proved to be a successful businessman

and inspired people to work together and make contributions, which enabled the company to

go up in miles (Raffo and Williams, 2018). Transformational leaders exercise their influence

when they show that the goals they set are attainable. They exercise influence by inspiring

trust among members of their organizations and motivating these people to act in ways that

elevate the interests of the business, even at the expense of personal gain. Bill Gates had

foresight about the future of technology, more so than others. He demonstrated the vision

through his software development company, Microsoft Corp., which transformed into a

global leader in developing application software for personal computers. He was a

transformational leader because he influenced his followers to be goal-oriented and share

organizational goals and objectives.

 Transformational Leadership 6

An organization's culture is undoubtedly influenced by the leader within. The leader's

personality, skills, working style, and personality play a vital role in determining the nature of

the organization's culture. The effect of an organization's culture on its efficiency and

productivity can be gauged by looking at measures such as absenteeism, labor turnover,

employee engagement levels, and customer satisfaction (Reid, 2020). For example, the style

of the leadership style of Elon Musk directly affects Tesla. Elon Musk is a strong leader who

instills confidence in employees, producing at peak performance and completing corporate

objectives. Elon Musk is a man with a mission. He's dedicated to improving the world we

live in, and his Tesla Motors is almost single-handedly bringing change to an industry that

has been stagnant for years (Reid, 2020). Musk's leadership behaviors follow the four

strategies that are associated with a transformational leader. First, he motivated the spread of

the electric vehicle concept by advocating for its benefits in various media interviews and on

Twitter. He also allowed celebrities that support environmental causes to test drive the Tesla

vehicle and then speak on its behalf. Second, Tesla has developed a team of sales

representatives and financial advisors, and it even offers buyers a test drive before they

decide to buy. Third, Musk simplified the car-buying process with its easily accessible

system. Elon Musk believes that the success of a company depends on the acknowledgment

of feedbacks. His willingness to accept feedback means he has the potential of becoming the

kind of transformational leader organizations need to compete successfully in today’s global

economy (Meador and Skerratt, 2020). Musk's efforts have helped him achieve great results.

He supports people he works with, so they can achieve the best possible results. His

optimistic outlook links progress to learning from failures. Elon Musk runs his companies is

very similar to how he runs his life- in a constant quest for improvement.
 Transformational Leadership 7

Other Leadership styles and Transformational Leadership.

Transformational leaders are successful leaders who inspire positive change, build teams of

employees that strive to do their best, and create organizations whose mission is supported by

all. Becoming a transformational leader requires a change in perspective and a purposeful and

passionate leadership style (Khan, 2020). There is a common notion that alludes to the

similarity between visionary leadership and transformational leadership. A visionary leader is

more likely to be charismatic and is more likely to inspire change in his or her organization.

A transformational leader is more interested in their follower's and subordinates' personal

growth and development but can also be very charismatic. While they are almost similar,

transactional leadership and transformational leadership are opposites. In a transactional

leadership situation, the employees know what is expected to be rewarded and how they can

benefit from a well-performed job (Tedlow, 2021). A transactional leadership style focuses

on the individual and the individual worker to decide what would benefit them in a given

situation. Benefits in a transformational leadership situation include motivation, unity, and

direction.

The Four I’s of Transformational Leadership

The characteristics of transformational leadership are deeply rooted in the original ideas of

James MacGregor Burns and Bernard M. Bass. They developed a theory that proposed the

idea of the four I's of transformational leadership, which become its most definitive

components.

The first is intellectual stimulation. Leaders at all levels must continuously evolve, adopt new

behaviors, and challenge existing ones. Even the most innovative leaders often fall back on

outdated mindsets and processes, despite their desire to innovate. They need help.

Transformational leaders question the accepted norms and regulations which need to be

changed (Sainger, 2021). They encourage their employees too to have the same kind of
 Transformational Leadership 8

mindset. It leads them to open up to new ideas and experience new opportunities. A

transformational leader does not set predetermined goals for individuals but bolsters their

desire to make a difference with opportunities to grow and learn, encouraging employees to

push harder and do better. This approach empowers individuals to put forth their best effort

every time a goal is met because they see that hard work will result in more responsibility.

Employees are empowered to find opportunities within the problems they encounter. They

approach their work with a sense of excitement and enthusiasm (Sainger, 2021).

The second is individual consideration. People who follow their passion and apply their skills

to a business that fits into a larger cultural picture often find themselves in the best position to

lead. It takes a leader to unite these factors under one theme and direct it toward a common

goal. Transformational leadership has an important role to play in motivating staff. It is also

essential in helping employees recognize what makes them succeed personally and

professionally (Khan, 2020). Transformational leadership is a style of leadership that

primarily focuses on enabling the people who are led to maximize their full potential,

challenging the status quo, providing opportunities for advancement, and supporting staff

development. Transformational leaders work to develop positive relationships with their

employees. They mentor and support their people, keep lines of communication open and

attend to the needs of each individual (Khan, 2020).

The third is inspirational motivation. Leaders help employees see the connection between the

unit's overall purpose and each individual's role in achieving that purpose. Leaders also

challenge employees to go beyond their comfort zone and capitalize on innovative

opportunities by thinking outside the box. Transformational leaders empower others to

succeed by providing the tools and resources necessary to do their work. They are dedicated

to creating an environment that encourages sharing, listening, and openness to new ideas.

Transformational leaders allow followers to take risks because they have defined success
 Transformational Leadership 9

criteria, provide feedback when appropriate, and recognize the contribution of individuals

and teams (Larson and DeChurch 2020). Transformational leaders transform an organization

by creating a learning environment that enlightens and equips others to improve performance

and reach goals. Transformational leaders help people learn, unlearn and relearn behaviors

that support and enhance their ability to successfully navigate change and face new demands

(Larson and DeChurch 2020).

The fourth is idealized influence. A transformational leader leads by example, walks the talk,

and connects with their employees. This type of leader also helps employees reach their full

potential by encouraging them to be innovative and think outside the box. Transformational

leaders are enthusiastic about their company's goals. They stay connected to what is

happening in the company and build positive relationships with clients and stakeholders.

Idealized influence is a one-person leadership style that is positive, influential, and visionary

(Reid, 2020). Leaders who have developed idealized influence can achieve their plan, even in

the face of resistance or ambiguity. They are inspirational because they are forward-looking,

are role models by the positive behaviors they model, have a constructive approach to solving

problems, communicate effectively with all levels, and use vision as their primary tool for

leadership. These leaders ask good questions, listen carefully to the responses, clarify the

meaning of what is said, and show empathy.

Leadership in Digital Age

As the world is going through a significant economic change in this digital age, leaders'

approach is also evolving. The digital economy is changing the way organizations are

designed, built, and run. How organizations operate is radically different today than even just

a few years ago. The most successful companies are moving beyond traditional rigid

hierarchies toward more responsive perimeter architectures. With a radical shift from scarcity

to abundance affecting global economies, businesses and leaders need to adopt a new
 Transformational Leadership 10

leadership approach (Sun and Henderson, 2017). That is how inspiration leads to innovation.

A world where every individual has a voice, a platform, and a community is just one of the

many possibilities created by new technologies. Those with an open mind, willing to embrace

change and create opportunities for others will thrive when technology advances. In the

digital age, the idea to market is measured in minutes, not months (Geier, 2016). It's a leader's

job to help the team keep up with the pace of change and to push for better results. Skilled

digital professionals will define their future and be part of the next generation of workers,

who'll increasingly deal with human-machine interactions. It is what leadership ideas should

aim at in this digital era, helping tomorrow's leaders embrace this change and prepare

themselves to face challenges in the long run.

Conclusion

Leadership is an ability that few people have. It is more than being authoritative. Planning,

organizing, coordinating, evaluating, and instructing are some of the tasks of any leader.

Leadership challenges individuals to think independently, relate well with others, take risks,

and confidently step into uncharted territory.

Concluding Points

Elon Musk is a unique talent of a man to influence others and help people be better versions

of themselves. Elon Musk has been making history for over a decade with his companies,

Tesla Motors and SpaceX. As an influential leader to his employees, he is able to help

humanity be better versions of themselves.

A great leader is always willing to be an active listener. An exceptional leader like Bill Gates

can motivate others to do what they don't necessarily want to do or like to do. He harbours an

intense desire to contribute that benefits their organization and the people within it.
 Transformational Leadership 11

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