Go beyond self-interest for the good of the organization.Display a sense of power and confidence.Instill pride in organizational members for being associated with the organization.To use idealized influence, executives need to take the following actions: Transformational leaders develop a shared vision and improve relationships with employees. These four aspects are idealized influence, individualized consideration, intellectual stimulation and inspirational motivation. Leaders can become better at what they do by using four aspects of transformational leadership. In the absence of transformational leadership, organizations lose their required direction to achieve a high degree of competitiveness and cannot implement successful change in order to adapt with today’s global business environment. For organizations to achieve sustained change and eventually a higher degree of efficiency and effectiveness, selecting a CEO that acts as a transformational leader is the key to success. The evidence from these examples suggests that transformational leadership is needed at the corporate level. Harley-Davidson’s leadership created a more effective organization built upon three primary principles:Īnother example of transformational leaders in a highly competitive environment is Steve Jobs, former CEO of Apple, who built a highly effective organization through taking a change-oriented leadership approach, which manifested itself in talent, product development, organizational structure and intense marketing. At Harley-Davidson, every employee can participate in leadership decision-making. The success of leadership at Harley-Davidson has stood the test of time. One example of this is retired CEO Rich Teerlink, who dramatically transformed Harley-Davidson and fundamentally built a different organization that still prospers today. Just as leaders need to be both autocratic and democratic at times, they also need to be both transactional and transformational at times also.Ī transformational leader can turn a weak business plan into a success, but a poor leader can ruin even the best plan. While transactional leadership involves determining the tasks, rewarding goal achievement and punishing failure in attaining goals, transformational leadership focuses on the critical human assets such as commitment and thus helps followers to effectively implement organizational changes with both efficiency and effectiveness. On one side is leadership that creates change by being process-oriented and the other side is a relationship-oriented approach. The basis of leadership can be charted in a model that illustrates the two competing sides.
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