Project Objective
The modern business world elicits concerns for stakeholders to understand the importance of embracing the appropriate style of leadership to ensure that their organizations remain productive. Memon (2014) says that organizational management is among the fields of business that faces a significant impact from the changing world. Technology appears to be one of the most critical areas that influence the performance of an institution in the modern environment. Notably, businesses engage in various activities to ensure that they maintain relevance in the market amidst competition. Employee’s job satisfaction is one of the most deliberated fields of organizational success and productivity. Many scholars agree that worker’s contentment leads to the productive working environment and maximum profitability of an institution. Therefore, Jyoti and Bhau (2015) argue that organizations require enriching their leadership mechanism to create a climate conducive to work. Thus, there have been several studies conducted to establish the effectiveness of various leadership models on workers motivation and performance. In the words of Wahab et al. (2016), the type of leadership adopted by a business determines the level of interaction between the leader and the follower influencing the engagement level of the workers with their roles and responsibilities. The purpose of transformative leadership on employee performance is a critical focus for scholars because the leadership style creates a friendly environment between the leaders and the workers imperative for institutional productivity.
The objective of this project is to study the relationship between transformational leadership and organizational performance. Therefore, the researcher will delve into the elements that influence the business in its path to the realization of productivity. Indeed, aspects dealing with employees and leaders within a firm have been highlighted to be some of the most critical factors in productivity. Thus, the researcher will embark on understanding how the association of leaders and followers affect the future of a business.
The current study aims at studying the associations between transformational governance model and the productivity of a business. Therefore, employee’s motivation, job satisfaction, performance, and self-efficacy will be the mediating factors to organizational productivity. Indeed, the performance of workers depends on the level of their fulfillment of the environment in which they work. The project will delve into organizations both medium and large to help understand the role of transformational leadership in improving workers motivation and job satisfaction for institutional productivity.
Transformational leadership and transactional leadership often contradict. According to Wahab et al. (2016), transactional leaders use rewards to help raise the morale of employees for organizational benefit. However, transformational leaders emphasize on making sure that they create an enabling environment to inspire their subjects to perform. Therefore, the objective of this kind of leaders is to ensure that the atmosphere within the business motivates the workers to increase their productivity. Indeed, leadership style is of critical importance in the area of organizational behavior. Undoubtedly, the model of leading dictates the direction that the firm takes making it imperative for leaders to ensure that they adopt the appropriate means to create understanding among them and their followers (Memon, 2014). The role of the workers in the productivity of a business is critical because it places the significant contributions and retributions that they may have on the success of a firm (Wahab et al., 2016). The progression from the responsibilities of employees to the roles of leadership and their relationship with the performance are focal points within an organization. This literature review delves into the transformational leadership to underlie the effectiveness of the style on improving organizational performance.
Project Scope
Management in the contemporary society faces rapid changes. The necessity to develop an active management style has become increasingly important in all organizations. According to a study conducted by Sougui et al. (2015) among Telcom engineering companies, the model of leadership influences employee’s job motivation. The study found that both transformational and transactional models of leadership are beneficial to employee inspiration and the productivity of a firm. However, many employees interviewed expressed more support for transformational leadership as the most effective method for boosting their morale. Another study conducted by Enkaningsih (2014) found results that were in tandem with the latter when the researcher concluded that transformational leaders give more impact on the productivity of workers through empowerment, confidence, and contentment with the managers. The latter study places more valuables than the earlier one making it more comprehensive in its scope. Therefore, empowerment and confidence in the leaders achieved wholly or partially; influences the work environment and affecting the relationship between employees and their leaders. Idris et al. (2014) also support the idea that transformational leadership creates an atmosphere of motivation and inspires them to work. The focus of organizational structure and administration appears to be imperative in helping employees identify and become productive within an organization. Motivation is the breakpoint that sets the pace for future growth and productivity of a business.
Veliu et al. (2017) while assessing the significance of leadership in influencing workers motivation found several leadership models to have a different impact on employee performance. The researchers found that liberal methods of administration including democratic and transformative leadership positively affect the productivity of employees. The researchers also recommend transformational leaders attempts to reorder their requirements by surpassing self-absorption and pushing for higher order requirements to inspire their juniors to perform. Lor and Hassan (2017) in a study among artisans in Malaysia assessed the effectiveness of transformative and transactional leaders in improving the productivity of workers. They found out that transformative leaders significantly and positively inspire the motivation of employees compared to transactional leaders. Therefore, the leadership model plays a critical role in helping workers make a significant contribution to the growth and productivity of an organization. Although leaders have the responsibility to ensure that their minors perform, they must do that in a way that makes them feel appreciated as a part of the big team of the organization rather than subordinates. The type of association between the leader and the follower determines the extent to which the two groups of people within an institution identify with the goals of the organization. Indeed, it is challenging to underlie the significant contribution of transformational leadership on institutional performance, but the substantial contribution to employee productivity suggest that the style will inevitably lead to the maximization of profits. Indeed, the productivity of workers is tantamount to the performance of a business as it replicates increase in outputs.
Leadership model is significant not only in the business field. Samad et al. researched the impact of transformational leaders on performance of universities in Australia. The authors acknowledged that higher education in the country requires effective leadership to realize productive ends. The researchers found out that the use of transformational leadership helps higher education institutions achieve their potential by bringing different staffs together under a common theme and goal. Notably, like any business, universities have several departments and effective leadership of these departments require leaders who understand the needs of their juniors for them to facilitate a conducive working environment. The attainment of an employee’s job satisfaction is critical for institutions as highlighted by Long et al. (2014) in their examination of the association between workers job satisfaction. The authors concluded that the features of transformational leadership significantly improve the relationship between workers and their leaders. Therefore, leaders and followers require understanding that realties anchored under transformational leadership are the catalyst to the satisfaction of workers. The important element of the goals of the organization involves deliberation from stakeholders, and transformative leaders view their subjects as the potential of the thriving of the business. Thus, the leaders ensure that they include everyone in the project of the company. Satisfied employees are inspired to engender and make a constructive contribution to the performance of a firm.
Transformational Leadership
The structure of businesses keeps altering in the vibrant world engendering management challenges and opportunities. The styles of leadership and the purported implication the method has on empowerment and profitability of an organization keep changing every day. Factors such as the globalization of the business world engender a situation mandatory for all institutions to improvise means to conquer the new competitive environment (Devie, Semuel & Siagian, 2015). Businesses have become a center of concern owing to the widening climate featured by expanding environment requiring monitoring of the market to ensure that they have global competitive standards. D’Ortenzio (2012) conducted a study to determine the perception of employee and leaders towards the changing trends in an institutional framework with the aim of understanding the important element for effective management and performance. Indeed, there was a concern among followers and the leaders surrounding the fast-tracking change making them agree that it is crucial for organizations to establish mechanisms imperative to making institutions remain relevant in the industry. Therefore, leadership style appeared to be among the best suitable method of ensuring that an organization motivates their workers and maintains their productivity and competitiveness in the wild market (Kim & Yoon, 2015). Indeed, transformative leaders are in the frontline in ensuring that they engender a change system in a business guiding their followers towards maintaining relevance in the dynamic and competitive market. Competition is among the external factors that affect the productivity of an institution and critical focus on its implication on business helps leaders make decisive judgments on how to maintain relevance in the industry.
Self-efficacy among employees is a critical element for organization performance. The ability of a worker to perform a particular task in an enabling environment helps business trudge on through the path of success (Abrell et al., 2013). The efficacy of employees depends on the level of workers relationship with their leaders. Therefore, the environment in which the employees work influences the level of their effectiveness. Thus, within a firm, leadership model plays a crucial role in mediating the efficacy of workers and the performance of the business. Aggarwal and Krishnan (2013) conducted a study and concluded that transformative leaders could help their followers bolster their motivation at the workplace, and their performance is likely to augment because of follower-leader engagement. Workers who work to impress their leaders attract an appeal form them making them more motivated to engage in company activities that lead to productivity (Caillier, 2016). Thus, under a transformative leader, workers heighten their efficacy and demonstrate high elements of commitment to the work. Indeed, followers give more attention to their work and agree with the opinions of their leaders owing to the deliberation made before concluding on them. Employee’s self-efficacy bolsters their motivation and productivity implying that it has several retributions to the performance of an organization.
The following literature focuses on the implication of transformational leaders on the motivation of employees, their productivity, job gratification, self-efficacy, and the performance of an organization and competitiveness. The reviewed materials demonstrate evidence for the role of the style of leadership in leading to the variables studied. However, the literature fails to give evidence on the implications of transformational leadership on the culture of the organization. In the words of Anderson et al. (2014), leadership styles do not necessarily lead to the performance of the organizations because sometimes they may have effects on the culture of the organization requiring systematic changes to adopt the new models. Moreover, the literature appears to incline more on the role of the leadership in affecting the employee but fails to focus on the critical element that is the organization. Notably, institutions have structures, and its productivity depends on the interplay between these elements. The authors of the literature do not realize that the productivity of a firm is an element of many factors. For instance, the competitors and legal provisions have a substantial impact on the profitability of a business (Hornstein, 2015). Therefore, it is important to conduct more study to understand other factors affecting the performance of an institution. These gaps require the critical focus of other incidences in the field of business and management outside the employee and leader mediated factors.
Leadership and Employee Motivation
Conclusion
Transformational leadership attracts more appeal from businesses around the world. Indeed, leadership structure applied by an organization dictates whether employees will perform maximally or not. The motivation for workers is a significant element in determining the success of the employees and the firm’s productivity. The advantages of using transformative leadership in boosting employee morale are innumerable. Notably, organizations are tasked with the responsibility to ensure that their employees feel part of the institution through the appropriate leadership style. The use of different models of leadership among organizations directs the organization future. Notably, the modern business environment involves intricate process and changes implying that organizations require being abreast with the new trends in the industry. Competitiveness appears to be among the most threatening aspect of the modern business world. The literature studied in this study reveals that transformative leadership is an effective method of the leading for increasing employee motivation. However, the research fails to highlight the role of the style of on influencing the organization productivity, but the significance laid on employees is a foundation of acquiring insight on the contribution of the governance style on improving the productivity of a business.
References List
Abrell, C. Rowold, W. & Moenninghoff, M. (2011). Evaluation of a long-term transformational leadership development program. Zeitschrift für Personalforschung, 25, pp. 205-224.
Aggarwal, J. & Krishnan, V. R. (2013). Impact of transformational leadership on follower’s self-efficacy: Moderating role of follower’s impression management. Management and Labour Studies, 38(4), pp. 297-313.
Anderson, N. Poto?nik, K. & Zhou, J., 2014. Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), pp. 1297-1333.
Caillier, J. G. (2016). Linking transformational leadership to self-efficacy, extra-role behaviors, and turnover intentions in public agencies: The mediating role of goal clarity. Administration & Society, 48(7), 883-906.
Devie D., Semuel H., & Siagian, H. (2015). The different impact between transformational leadership and transactional leadership on competitive advantage. Journal of Progressive Research in Social Sciences, 3(1), pp. 146-153.
D’Ortenzio, C. (2012). Understanding change and change management processes: a case study. P.H.D. University of Canberra.
Ekaningsih, A.S. (2014). The Effect Transformational Leadership on the Employees Performance through Intervening Variables of Empowerment, Trust, and Satisfaction (A Study on Coal Companies in East Kalimantan). European Journal of Business and Management, 6(22), pp.111-117.
Hornstein, H. (2015). The integration of project management and organizational change management is now a necessity. International Journal of Project Management, 33(2), pp. 291-298.
Idris, M. Troena, E.A. Noermijati, F.R. and Newcombe, P.A. (2014). The Effects of Transformational Leadership Styles, Organizational Culture and Work Motivation on Employee Performance. International Journal of Business and Management Invention, 3(3), pp. 51-57.
Jyoti, J. & Bhau, S. (2015). Impact of transformational leadership on job performance: Mediating role of leader–member exchange and relational identification. SAGE Open, 5(4), pp. 2-8.
Kim, S. & Yoon, G. (2015). An innovation-driven culture in local government: Do senior manager’s transformational leadership and the climate for creativity matter? Public Personnel Management, 44(2), pp. 147-168.
Long, C.S. Yusof W.M.M. Kowang T.O. & Heng L.H. (2014). The impact of transformational leadership style on job satisfaction. World Applied Sciences Journal, 29(1), pp. 117-124.
Lor, W. & Hassan Z., (2017). The Influence of Leadership on Employee Performance Among Jewellery Artisans in Malaysia.
Memon, K.R. (2014). Effects of leadership styles on employee performance: Integrating the mediating role of culture, gender and moderating role of communication. International Journal of Management Science and Business Research, 3(7), pp. 63-80.
Samad, A. Reaburn, P. Davis, H. & Ahmed, E. (2015). An empirical study on the effect of leadership styles on employee wellbeing and organizational outcomes within an Australian regional university. In Australasian Conference on Business and Social Sciences, Sydney, Australia, 1(2), pp. 13-14.
Sougui, A.O. Bon, A.T. & Hassan, H.M.H. (2015). The Impact of Leadership Styles on Employees’ performance in Telecom Engineering companies. Australian Journal of Basic and Applied Sciences, 8(4), pp. 1-10.
Veliu, L. Manxhari, M. Demiri, V. & Jahaj, L. (2017). The Influence of Leadership Styles on Employee’s Performance. Management (16487974), 31(2), pp. 59-69.
Wahab, S. Rahmat, A. Yusof M.S. & Mohamed, B. (2016). Organization performance and leadership style: Issues in Education Service. Procedia-Social and Behavioral Sciences, 224, pp. 593-598.
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