In the current economic climate, with many businesses adopting a more value-based relationship with customers, business leaders are embracing a similar approach to managing people. Transformational leadership involves leading a company with vision and enthusiasm, and passing this on to staff in order to achieve specific business goals.
It is, as theorist Bernard Brass states, “a form of leadership that occurs when leaders broaden and elevate the interests of their employees, when they generate awareness and acceptance of the purposes and the mission of the group and when they stir their employees to look beyond their own self-interest for the good of the group.”
Studies have shown that transformational leadership significantly improves organisational performance, is positively linked to customer satisfaction levels, and generates higher commitment to the business from employees.
The approach involves:
- Articulating a compelling vision for the future
- Specifying the importance of having a strong sense of purpose and a collective mission
- Talking optimistically with confidence that goals will be achieved
- Engendering the trust and respect of followers by doing the right thing
- Talking about important values and beliefs
- Considering the moral and ethical consequences of decisions
- Seeking different perspectives to solving problems
- Taking into account each employee’s different needs, abilities and aspirations
- Being compassionate, appreciative and responsive to employees and celebrating their achievements
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