Transformational Leadership for Gaining a Competitive Advantage

Topic: Leadership
Words: 556 Pages: 2
Table of Contents

Introduction

Asman Ismail et al., in their article “An empirical study of the relationship between transformational leadership, empowerment and organizational commitment,” published in the Business and Economics Research Journal, examined the potential of empowerment as a method for increasing organizational commitment. The authors study how transformational leadership affects the behavior and motivation of employees by giving them more authority and how this method increases their perceptions of an organization. This paper summarizes the article on studies of transformational leadership by Ismail et al.

Main body

The authors discuss the value of transformational leadership as a tool for gaining a competitive advantage. In the past few decades, this style of management has been widely considered as one of the primary sources of improvement, and many successful companies rely on it (Ismail et al., 2011). Unlike transactional leadership, transformational leadership provides less measurable results, yet it tends to increase personal contribution to the company’s cause (Ismail et al., 2011). This style affects employees by increasing their involvement in the organization’s activities and granting them influence over a portion of its functions (Ismail et al., 2011). It is essential to determine whether these methods brought employees’ perceptions of their companies to the desired level.

To determine the efficiency of empowerment, the authors conducted a cross-sectional study at one company located in Malaysia. The company was chosen on the basis of its recent shift of leadership style and newfound success (Ismail et al., 2011). First, its 118 employees were interviewed on the perceived impact of transformational leadership through a survey. Then, the authors chose four of the most experienced employees from the company to interview. The results were compared with findings from literature regarding the topic of empowerment and organizational commitment. The collected data revealed that there is an increase in organizational commitment among employees of the studied company that strongly correlated with the implementation of empowerment techniques (Ismail et al., 2011). The company’s leaders have used such methods as transferring authority to employees, considering their suggestions, and promoting self-confidence (Ismail et al., 2011). As a result, this company got a more significant portion of the market in which it operates.

Ismail et al. also note that some features of their study that are unique to the context of their work. The authors note that there was a considerable difficulty among employees to exhibit self-governing behavior in some cases that required taking high risks (Ismail et al., 2011). In the end, Ismail et al. state that this research is meant to change managers’ perceptions of their leadership styles and reassess the value and sources of motivation (Ismail et al., 2011). While payments remain legitimate methods of increasing productivity, companies should also consider boosting personal contribution by making work more satisfactory for their employees.

Conclusion

In conclusion, the authors studied the correlation between individual empowerment from the transformational leadership approach and organizational commitment. Their findings suggest that leaders who successfully manage to implement this method add significant value to their companies by promoting more autonomous behavior (Ismail et al., 2011). However, the authors also note that this leadership style may not be suitable for every company, and decision-making processes must be monitored in some cases where high risks are involved (Ismail et al., 2011). Transformational leadership remains one of the most efficient ways to increase productivity where creativity can be beneficial.

Reference

Ismail, A., Mohamed, H. A., Sulaiman, A. Z., Mohamad, M. H., & Yusuf, M. H. (2011). An empirical study of the relationship between transformational leadership, empowerment and organizational commitment. Business and Economics Research Journal, 2(1), 89-107. Web.