Advantages and Disadvantages of Transformational Leadership

Advantages and Disadvantages of Transformational Leadership

Introduction

The goal of any type of leadership is to get employees to perform beyond the expected. While transactional leaders do this by meting out rewards and punishments, transformational leaders do this by influencing the values and attitudes of others. It takes a special type of person to deliver an inspiring vision of the future, and there are pros and cons associated with this leadership style.

Transformational leadership

The transformational leaders are effective because of several reasons such as the leaders may be charismatic in terms of inspiring the employees, the transformational leaders may meet the emotional need of the employees or they may stimulate the employees intellectually (Bass & Avolio, 1994).

The personalized relationship developed by a transformational leader develops an environment in which the employees feel happy and hence, their overall performance is improved. Hence, it can be said that transformational leadership and organizational performance are positively associated and transformational leadership has a significant impact on the performance of the organization. (Jyoti and Dev, 2015)

The idealized and behavioral charisma of the transformational leaders motivates the followers to identify with the leader. (Jyoti and Dev, 2015)

Advantages and Disadvantages of Transformational Leadership

·         Transformational leadership lowers turnover costs.

·         It is a leadership style which engages the full person.

·         Transformational leaders create and manage change.

·         New corporate visions can be quickly formulated.

·         It encourages ongoing learning and development.

·         Transformational leaders are excellent communicators.

·         It quickly changes low-morale situations.

·         Transformational leaders understand relationships.

·         It is a leadership style which focuses heavily on ethics.

·         Transformational leaders ask the important questions.

·         This leadership style takes pride in the outcomes achieved.

·         Transformational leaders seek to avoid coercion.

·         People are treated as individuals.

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Disadvantages of Transformational Leadership

·         Transformational leaders can develop negative outcomes.

·         There must be continual communication available.

·         It requires constant and consistent feedback.

·         Transformational leaders need their followers to agree with them.

·         Risks are taken through transformational leadership can be disruptive.

·         It can lead to employee burnout.

·         Transformational leaders often focus on individual needs.

·         It is a leadership style that can focus on deception.

·         Transformational leaders are not always detail-oriented.

·         It is a leadership style which may ignore certain protocols.

                                                        (Gaille, 2018)

The Famous Transformational Leaders

Companies founded by transformational leaders include Apple, IBM, Intel, and Microsoft. Steve Jobs, Bill Gates and other hardware and software company leaders have transformed not only the computer industry but the way other businesses work as well.

Transformational leaders in finance include business magnate Warren Buffett, Peter Lynch of Fidelity and John Bogle of Vanguard. By offering people a vast array of different ways to invest their money, these leaders have transformed the financial industry. These leaders recognized the market for low-cost ways to invest, such as mutual funds. Additionally, they've created opportunities to bank and trade online. (Your Business, n.d.)

Transformational leadership and ABC bank

The Bank’s well-spared network of branches places it in a unique position to support the unbanked segments of the market through lending and deposits products. Branch managers and relationship managers maintain relationships with the society directly. Their management style directly affected the service level and it will attract customers and increased business volume and profitability.

The bank consists of over six hundred branches all over the country and most transformational leaders are a success as managers and perform well with the corporation of subordinates.

  

Conclusion

Transformational leadership enhances the motivation, morale, and performance of followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimize their performance.

References

Annual Report ABC Bank 2018

Bass, B.M.; Avolio, B.J. Improving Organizational Effectiveness through Transformational Leadership; Sage Publications: Thousand Oaks, CA, USA, 1994.

Chron.com. (2019). Advantages and Disadvantages of Transformational Leadership. [online] Available at: https://smallbusiness.chron.com/advantages-disadvantages-transformational-leadership-20979.html.

Gaille, B. (2018). 22 Advantages and Disadvantages of Transformational Leadership. [online] BrandonGaille.com. Available at: https://brandongaille.com/22-advantages-and-disadvantages-of-transformational-leadership/.

‌‌ Jyoti, J., and Dev, M. (2015). The impact of transformational leadership on employee creativity: the role of learning orientation. Journal of Asia Business Studies, [online] 9(1), pp.78–98. Available at: https://www.deepdyve.com/lp/emerald-publishing/the-impact-of-transformational-leadership-on-employee-creativity-the-04uFNGE5He [Accessed 15 Dec. 2019].

Your Business. (n.d.). Authoritative Leadership Styles. [online] Available at: https://yourbusiness.azcentral.com/authoritative-leadership-styles-16647.html.

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