Building a Thriving Organizational Culture With Transformational Leadership


(Photo by RODNAE Productions from Pexels)


Introduction:

Leadership is a vital component of company culture and significantly affects how people behave and think. Gregor Burns developed the idea of "Transforming Leadership" in the 1978s, emphasizing the significance of leaders in changing corporate culture. This article will cover the concept of transformational leadership and how it may affect company culture.


What is Transformational Leadership?

According to Burns (1978), transformational leadership is a process in which leaders inspire and motivate their followers to achieve higher performance and success. It differs from transactional leadership, which focuses on exchanging rewards for performance. In contrast, transforming leadership focuses on creating a vision for the organization and inspiring followers to work towards that vision. 

A diagram of the transformational leadership theory is provided below (MD, 2021). The figure 1 illustrates how 'inspirational motivation,' 'intellectual stimulation,' 'individualised consideration,' and 'idealised influence' combine to build a transformative leader.


Figure 1: There are four main components, or domains, of transformational leadership (MD, 2021)


Transformational Leadership Techniques

Here are a few examples of transformational leadership techniques according to Indeed (2022):

  • Aligning a company's identity and interests with those of its employees 
  • Identifying common goals and objectives 
  • Identifying opportunities for improvement and developing a vision to match 
  • Challenging team members or employees to take responsibility 
  • Giving team members control over their jobs and duties


Benefits of Transformational Leadership 

Here are some benefits of transformational leadership techniques according to Indeed (2022):

  • Promotes motivation
  • Maintains workplace integrity
  • Defines a clear vision and goal
  • Encourages professional development
  • Improves loyalty and decreases turnover
  • Encourages passion
  • Eases transitions
  • Improves communication




Figure 2: Five Qualities of transformational leader (Source: Youtube)


How does Transformational Leadership Influence Organizational Culture?

Organizational culture may be significantly impacted by changing leadership. Transformational leaders could encourage an environment that promotes creativity, innovation, and employee engagement. Transformational leaders may give workers a feeling of purpose and meaning by establishing a shared vision and motivating them to work toward it. This can increase job satisfaction and employee retention levels.

A culture of openness and trust where workers feel comfortable sharing their thoughts and opinions can be developed by transformational leaders. This might create a more inclusive and collaborative work atmosphere, improving decision-making and problem-solving.


How Can Organizations Implement Transformational Leadership?

A considerable change in leadership style and organizational culture is necessary to implement transformational leadership. Organizations must first select the leaders who best represent transformational leadership to put it into practice. These leaders need the tools and assistance needed to forge a unifying vision and motivate their people to strive toward it.

Organizations must also foster an open and trusting culture where employees feel comfortable sharing their ideas and thoughts. This necessitates the creation of an environment in which people are valued and respected, and their efforts are recognized and rewarded.


Common Challenges of Transformational Leadership

Here are some challenges of transformational leadership according to Indeed (2022)

  • Prioritizes long-term goals over short-term goals 
  • Increases potential for burnout 
  • Requires continuous communication 
  • Slows decision-making


Conclusion

Transformational leadership is an influential theory for influencing company culture. Transformational leaders may foster a positive culture that encourages innovation, creativity, and employee engagement by developing a shared vision and empowering workers to strive toward it. While reforming leadership necessitates a considerable transformation in leadership style and organizational culture, the rewards can be substantial, including increased employee happiness, retention, and overall organizational performance.

Please share your ideas for "Building a thriving organizational culture with transforming leadership " in the comments section.



Reference

Burns, J. M. (1978). Leadership. New York: Harper & Row. 

Cameron, K., & Quinn, R. (2011). Diagnosing and changing organizational culture: Based on the competing values framework. John Wiley & Sons. 

Denison, D. R. (1990). Corporate culture and organizational effectiveness. John Wiley & Sons. 

Indeed, (2022). Pros and Cons of Transformational Leadership (With Definitions). www.indeed.com. [online] Available from: https://www.indeed.com/career-advice/career-development/pros-and-cons-of-transformational-leadership  [Accessed on 3 April 2023].

MD, O. P. (2021, May 18). Transformational Leadership: How to Motivate & Inspire Teams. PositivePsychology.com. [online] Available from: https://positivepsychology.com/transformational-leadership/ [Accessed on 2 April 2023].

Schein, E. H. (1990). Organizational culture. American Psychologist, 45(2), 109-119.

Yukl, G. (2010). Leadership in organizations (7th ed.). Pearson Prentice Hall.


Comments

  1. The blog post describes the transformational leadership style to change the organisational culture to a positive thriving culture. I believe that you should emphasis on the other leadership styles and then elaborate why transformational leadership is the only style to achieve a positive thriving culture. However the blog post is commendable Niluka.

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  2. Yes, I agree! I need to incorporate various distinct leadership types, such as transactional leadership and autocratic leadership so that I can create an argument.

    Thank you very much Thank you for your insightful comment, George.

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  3. This article provides a clear overview of transformational leadership and its benefits for organizational culture. You explained the different components of transformational leadership, provides examples of techniques, and highlights the challenges that leaders may face when implementing this leadership style. The article concludes with suggestions on how organizations can implement transformational leadership to build a thriving organizational culture.

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    Replies
    1. Thank you Chaminda for your input! I'm delighted you found the article helpful in understanding transformational leadership and its implications for organisational culture. It is critical to comprehend the various components and approaches involved in this leadership style and the difficulties that may develop when adopting it. Many thanks again for reading and commenting on the article.

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  4. Great post, Niluka! You've given a clear description of how promoting creativity, innovation, and employee engagement could have an positive impact on organizational culture. Your suggestions on how to put transformational leadership into practice by choosing the proper leaders and encouraging an open and trustworthy culture are very useful. Good to note that you address the typical challenges faced by transformational leaders as well. I think it's wonderful article overall.

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  5. I appreciate your thoughtful comment. I value your good comments and am delighted you found my suggestions on fostering innovation, creativity, and employee involvement helpful.

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  6. Thank you for sharing this insightful post. Positive and engaging culture can greatly impact employee morale and productivity (Barney, 2018). Your emphasis on the importance of transformational leaders in inspiring and empowering their teams to achieve their goals is particularly relevant in today's constantly evolving business environment (Bass, 1990). I found your practical tips on cultivating transformational leadership skills, such as promoting open communication and modeling desirable behaviors, very useful (Goffee & Jones, 2013). I'm looking forward to applying these strategies in my own workplace to foster innovation, collaboration, and growth.

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    Replies
    1. Thank you for your thoughtful comment! I'm glad you found the post insightful and helpful. I agree with your point about the impact of a positive and engaging culture on employee morale and productivity. Transformational leadership plays a significant role in developing such a culture, and it is fantastic to hear that you found the practical tips on cultivating these skills valuable.

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  7. The article highlights the value of transformational leadership in establishing a supportive workplace culture. Transformational leaders may create a culture that promotes innovation, creativity, and engagement by creating a common vision and enabling staff members to help realise it. Although changing a leader's style of leadership and an organisation's culture might be difficult, the benefits, such as improved staff retention and performance, can be worth the effort. The article focuses on the necessity for leaders to prioritise developing an environment that is supportive of employee growth and development and can, in the long term, produce superior business results.

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    Replies
    1. Thank you for communicating your thoughts on the article! I'm glad you found the informative discussion on transformational leadership and its impact on workplace culture. You are correct that changing a leader's style and the organization's culture can be challenging, but as you mentioned, the benefits can be considerable. I appreciate your focus on supporting employee growth and development and its impact on overall business performance.

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  8. Thank you for this insightful post Niluka. I also agree that Transformational Leadership can have a positive impact on the organizational culture in the long run. Transformational Leadership is more suitable for higher management but I doubt whether this leadership style suits line managers. Because if you are leading a less skilled and less experienced team you may require to micro-manage things, which is not aligned with the Transformational Leadership style.

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    Replies
    1. Thank you for your comment and for sharing your thoughts on transformational leadership's suitability for line managers. While transformational leadership may not be appropriate for every situation or level of management, it is essential to note that critical transformational leadership elements such as empowering and motivating employees, setting clear goals and expectations, and providing ongoing feedback and support can be applied at all levels of an organisation.

      It is also essential for managers to assess the needs of their team and adjust their leadership style accordingly. While some situations may require a more directive approach, empowering and motivating employees through effective communication and involving them in decision-making processes is still possible. Ultimately, the goal of transformational leadership is to create a culture of innovation, growth, and empowerment, which can be achieved at all levels of an organization.

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