Strategy may be referred to as the brain in relation to the organization and its related goals. Strategy and the leadership together are the primary drivers of the organizational goals. The leadership renders the real-time field in relation to the application of the designed strategy. The upper management in the hierarchy of the organization design the organizational strategy and it is the operational level employees and staff the is charged with the responsibility of the execution of the same, however, the pertinent factor that needs to be considered in relation to the execution is the leadership. Over the course of the development of the industry and the business world, leadership theories continued to evolve that can counter the challenges posed by the dynamic contemporary business world.
Transformational Leadership and the Transactional Leadership
I believe the theory referred to as the transformational leadership is quite effective in relation to the organizational goals irrespective of whether they are long term or alternatively; short-term. The core feature of the transformational leadership is about the motivation of the workforce and employees of the organization and making them owning the actions in relation to workplace and henceforth, owning the organization as well. The theory of leadership that is advocated against the transformational leadership is the transactional leadership. The core feature of the transactional leadership is regarding the organizational goals which are short-term in nature and alternatively, it can be stated that transactional leadership is performance oriented substantially. On the other hand, the former leadership theory is more focused on the employees themselves and their professional development. The underlying rationale of the orientation of transformational leadership is that the employees are ultimate operators of the designed strategy and the employees that are satisfied and developed will yield greater performance of the organization in terms of operations and thus sustainability score of the organization would be increased.
Real-time application of the Transformational and Transactional Leadership
Taylor Corporation is a company that was established in the year 1975 and is engaged in the industry of Media in the city of Minnesota. The theory of Transformational leadership is visible in the organizational hierarchy from top to bottom. Media Play is another organization that is established in the year 1992 and has a retail clientele of the DVDs, Videos and lastly the video games. The organization was not able to sustain its operations and has to discontinue the same in the year 2006. The apparent rationale is the absence of the leadership along the hierarchy lines of the organization. Let’s explore the causes that translate into performance and discontinuation of the operations of Taylor Corporation and Media Play respectively. Taylor corporation earned revenue has a quantum of $2 Billion in relation to the fiscal year ending on December 31, 2005. The primitive services rendered by Taylor Corporation are the printing of the business cards in addition to the invitation cards. Over and above, the company provides services of printing and marketing to the commercial clients. The provision of those services frequently requires one to one communication and correspondence in real time with the customers of the organization. Leadership is the element that designs those communication patterns and provides for the environment that is needed for the implementation of the same. The principle reason the Media Play chose to discontinue its primary revenue operations is the leadership style which translates into the customer service which is not customer oriented and hence results in customer dissatisfaction.
Correlation of the Leadership Style and the Operational Performance
As it is emphasized above, the orientation in relation to the transformation style is the employees of the organization; however, transactional leadership is quite aligned and compatible with the Transformational Leadership. The former style believes in the participation in the organizational activities of the employees whereas the transactional leadership opines and advocates the relationship between instructions to the employees and the organizational performance. The concentration of the employees results into the organizational coordination. This catalyzes the organizational performance. It can be easily concluded that the effective communication pattern (the source of coordination) in relation to the clientele of the organization is what is required to boost the organizational performance. It includes timely and appropriate response to the queries of the customers in addition to their complaints. This is the sole reason which entitled Taylor Corporation sustainability through the transformational style and the organization referred to as the Media Play failed to make the mark in the contemporary business environment.
Effective Leadership Style in the Contemporary Business World
I believe transformational leadership gives you an edge in relation to another leadership style particularly, transactional leadership. Human resource which is alternatively referred to as the Human Capital is the principal asset as far as the operations of the organization are concerned. The satisfaction of the employees that is the Human resource of the organization is the most important and pertinent asset for the organization as it cannot be acquired, purchased. It is priceless. The greatest merit that is embedded in the transformational leadership style is that it creates the sense in the employees that organizational goals are correlated to the personal goals and the achievement of the former automatically satisfies the latter goals.
Effective Leadership Style and the Real-time Application
In the coming paragraphs, I would like to apply the Leadership theory in the real-time business world to understand the implications on the organizational performance of the same. Emerging Systems is one of the companies engaged in the IT and database solutions for the individual as well as business customers. It is worth mentioning that the IT market is not that much stable as other industries used to be and this volatility is increasing with each day that has been passing and witnessing technological advancements compatible with the requirements of the organization. The said companies used to outsource the Human resource in relation to the maintenance works and contracts, services and solutions for troubleshooting which affords the extended interaction between the outsource Human resource and the clients of the organization.
Customer satisfaction is the direct source of the sustainability in relation to the organization over and above the increased business prospects. The increment in the employees’ efficiency requires the thorough overhauling in relation to the working conditions as well as the environment of the organization head office. Provision of the new and ergonomic furniture that is ergonomic and relaxed chairs at the workplace which would assist in the comfort level and thus assist with the efficiency levels of the employees. Remuneration levels also play an important role with regard to the efficiency levels. It is a no brainer that salary has the effect on the motivation up to a specific level but it certainly assists in the achievement of the personal goals by catalyzing the motivation level at the career start-up. The geared up performance will be related to the rewards. The participation in the process of the planning will make them believe that they are an important and pertinent asset of the organization and their say has worth for the organization. It will have a significant effect on their motivation levels in addition to creating understanding for the job descriptions.
The role of the leadership is to assist the employees in visualizing that the satisfaction in relation to company goals is beneficial for the employees themselves in the long-run and it will be translated into professional growth and development. Responsibility fosters the efficiency and it is a natural process. The leadership role will be delegated to the employees by providing them with the opportunity to lead the team that provides the services to the clientele of the organization. It will foster the sense of responsibility, empowerment in the employees. The decision making power will be strengthened and innovation instinct will be developed which will assist in the provision of the quality services to the customers of the organization.
Designing and emphasizing the strategy is quite important as far as success and sustainability is concerned, however, the importance of environment cannot be ignored at all. The environment and workplace of the organization give rise to the capacity of innovation at all the levels and cadres of the organization. The organization will be manifested as the learning organization that will afford the opportunity for learning as well as professional development of the employees. They will be equipped with the necessary skills for challenging the cultural values and making the opportunities for the sustainability of the organization. Transformational leadership is the gateway to the change and the imparting of the formal education will assist in the implementation of the same. Likewise, the existence of the functional conflict can be meaning and along with the innovation culture, it will bring sustainability to the organization in the long-term.
Conclusion
It is rightly justified in referring the leadership as the organization life blood. It is a source of competitive edge in the long-term. Diverse leadership theories claim effectivity in the real-time, however, individual circumstances warrant which leadership theory will be real-time effective for the specific organization. The core feature of the transformational leadership is about the motivation of the workforce and employees of the organization and making them owning the actions in relation to workplace and henceforth, owning the organization as well. The theory of leadership that is advocated against the transformational leadership is the transactional leadership. The core feature of the transactional leadership is regarding the organizational goals which are short-term in nature. Leadership is the element that is the driving force underlying the designing of the strategy and is the potent force for the implementation of the same as well. If the leadership is compatible and a kind of rapid response to the constantly changing environment, then it is the source of sustainability over the long-term period.
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