Ethical Leadership and Transformational Style

The assignment discusses the importance of ethical leadership in establishing effectiveness in ideas and innovation. It refers to several studies that demonstrate the positive impact of transformational leadership on organizational performance, job satisfaction, and behavioral outcomes. The case study of Elon Musk is used to illustrate the principles of ethical leadership and transformational style.

LEADERSHIP AND
MANAGEMENT,
THEORY AND
PRACTICE

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Overview of Case Study..............................................................................................................1
1. Leadership style used by Elon Musk in relation to leadership theories..................................2
2. Leadership qualities in relation of leadership theories which Elon Musk contributed in his
success and failures.....................................................................................................................3
3. Elon Musk represent ethical leadership and the advantages and disadvantages of ethical
leadership....................................................................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Leadership and management plays vital role in establishing effectiveness in work
practices. It is important for the individuals to follow specified leadership style in accordance to
theory in order to perform effectively in order to attain specified goals and objectives. Further,
the report will evaluate the leadership style and theories followed by Elon Musk, the hottest
name of Silicon Valley. Beside, the report will outline the ethical leadership which demonstrate
Elon Musk and his Work. Thus, it will evaluate the leadership qualities which assisted the
person in contribution in his success and failures.
MAIN BODY
Overview of Case Study
Elon Musk is currently the hottest name in Silicon Valley an according to him if
something is important then if the situation is odd still the person should try accomplishing it.
Further, he says that if I Say big then I mean big, according to him the person should first focus
on figuring out the questions and then should seek for answers. Apart from this he believed that
physical fitness is more important than intelligence that is he preferred Brawns over Brains.
Apparently, at the age of 12 Elon launched video game which assisted him in earning $500
where he realized that to attain success only intelligence is not enough as universe is crowded
with smart people. Furthermore, at the age of 17 Elon left his house due to his challenging
relationship with father and because of bullying activities which he faced in school. Now he had
nothing to lose and he decides to develop an understanding over its mission of becoming
successful. When Elon started discovering its innovation and intelligence he planned to set a
rocket company to reduce the cost of travelling in space, hence he stood by his vision and Space
X, to create better future for humanity. After space X he analysed the increasing impact of
Global warming so he decided to launch electric cars with the philosophy of go green, power and
clean energy. Thus, the innovation of Elon does not stop here further he planned for Solar city
which was a big project but it was planned to make effective use of natural energy resources
instead to wasting electricity and generating power. The plan went on effectively with its leasing
model where consumers who can not afford solar system will be assisted by company at the time
of installation. Hence, it is been demonstrated that Elon focused on making realistic and green
innovations. The situations faced by Elon demonstrate that he very emotionally strong person
and demonstrate various qualities of leadership such as, honest, fair, emotionally mature,
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effective, decision maker and is always ready to take initiative for something good and
beneficial.
1. Leadership style used by Elon Musk in relation to leadership theories.
In accordance to case study, it has been determined that Elon used transformational
leadership style in relation to trait and situational leadership theories. Transformational style of
leadership is followed by the individuals who believes in continuous motivation and innovation
(Wang, Oh and Colbert, 2011). In this the performance of leaders is represented beyond the
expected results. The style is fair and goals oriented which assist the person in fulfilling their
high expectations. Situational theory of Hersey-Blanchard is based on four stages that is Telling,
selling, participating and delegating whereas trait leadership theory states that leaders are born
not made but its needs a realization of changing and developing ideas. The transformation
leadership style in relation to trait and situational theory is described under: Individual Consideration: In this the person creates vision with the purpose for which it
aims at understanding the values and resources required to attain vision. It is based on a
careful though processed ion human mind which is why it is termed as individual
consideration (Kark and Shamir, 2013). However, in accordance to case study of Elon in
this phase he discovered the need of cost effective travel to space, increasing impact of
global warming and over utilisation of power. The idea is considered by Elon according
to situation which is hampering environment, cost and time. Moreover, the traits of Elon
demonstrate that Failure is an option here. If things are not falling according to your will
then you are not putting your 100 percent effort which clearly denotes the innovation and
motivation of individual as per trait theory. Intellectual stimulation: In this phase the person motivate and encourage people to buy
their idea by promoting their mission and vision statement. In this phase it is important
for the person to motivate people to like their idea of establishing innovation. For this the
individual focuses on implementing the use of various attractive and effective business
strategy. Apparently, in case of Elon Musk, he enhanced the ideas by sharing with
people all the benefits of using their products like the rocket SpaceX is launched to have
control over time when travelling to space, electric cars to preserve environment and
climatic condition from the impact of fossil fuels and emission of harmful gases. Solar
city to preserve power and for installation the plan was launched with leasing model in
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order to assist financial help to customers. The trait theory denotes the innovation and
motivation of Elon according to situation which assist him in selling its idea.
 Inspirational Motivation: Inspiration and motivation assist the person in managing and
delivering vision because with time it the vision becomes reality (García-Morales,
Jiménez-Barrionuevo and Gutiérrez-Gutiérrez, 2012). This step of leadership style assist
the person in managing change and set a clear SMART objective which is Specific,
measurable, achievable, relevant and bound with time. It is the best strategy which is
followed by Elon Musk to accomplish determined goals and objectives. Further, with the
help of this, Musk panned its vision with specific time bounded and determined that the
innovation he is trying to make are relevant and achievable. According to trait theory, it
has been determined that Elon is highly motivated and innovative.
 Idealized Influence: In this the leader is focused on making highly influencing and
strong relationship with consumers and focused on establishing good and trust worthy
market reputation. In this the leaders is focused on disclosing every necessary
information about the innovation and idea to gain consumer trust. Thus, Elon Musk
followed this style as per his traits of situational leadership where he is focused on
participating and taking authorities for his responsibility.
Hence, transformational leader like Elon Musk are creative and inspiring which assist in
motivating people and setting vision for innovation for the people who plans a start-up. Thus, it
helps the individual in enhancing their trustworthy and strong relationship with people. In
accordance to leadership theory and style it has been determined that the style followed by Elon
was constant in all the situation. However, there are various theories of leadership like
behavioural, contingency, situational, path goal, trait etc. but in accordance to situations and
challenges faced by him it is represented the trait and situational theories were the most reliable.
2. Leadership qualities in relation of leadership theories which Elon Musk contributed in his
success and failures.
Big vision and big results demonstrate the various leadership qualities of Elon must like,
he is forward looking which is demonstrated by its challenging relationship at 12 where he used
to get bullied and beaten by school mates and has sad and challenging relationship with father.
At the age of 17 he left the place to attain his life goals because according to trait theory of
Leadership it has been determined that he is an innovative kind of person who believes the
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brawns are required to maintain the innovation of Brain. At the age of 12 when he launched a
video game it was clear that he is competent person and can do wonders combines physical
ability with brains. Apart from this the success of Elon is assisted by his competent quality of
leadership where he believed there are so many smart people innovating new ideas and he need
to think differently if wants to establish his vision. Trait theory denotes that by birth he is
different personality who is unstoppable and believes in innovation (Hernandez, Eberly and
Johnson, 2011). Elon has the quality of empowering people with its innovation like, he launched
the solar city plan where he focused on reducing the use of power where he even planned lease
model to provide financial support to customer. This is the strategy by which assisted him in
attaining success of ides and building trust worth and honest relationship with people. However,
when he analysed the increasing impact of global warming which are creating damage to
climatic conditions he planned a innovation of electric cars where he inspired various people to
go green and make use of environmental friendly products and services. According to his
successful innovation he is a big time inspiration and example for people across the globe.
Furthermore, the situational leadership theory denotes that he is the person who is
adaptable to changes and is focused on participating in various kind of innovative activities.
Moreover, it has been determined that he likes to take responsibility as per the power. However,
in accordance to leadership trait theory and quality he is person with initiative and innovative
ideas which assist him in establishing new project every time keep in mind the ethical practices
which aims at protecting human and environmental rights (Shondrick, Dinh and Lord, 2010).
Moreover, with the continuous changes of life, it has been evaluated at Musk is emotionally
mature and have sense of decisiveness which assist him in implementing innovation with
intelligence. On the other hand, the motivating And innovative quotes of Elon demonstrate its
effective communication skills and dynamic personality which is necessary to resist competition.
The quote “Once you figure out the question then the answer is relatively easy” is clear
communication with people that represents the individual should first focus on analysing
questions before seeking for answers and this interaction skills is clear communication with
people which demonstrate leadership quality of Musk as an inspiration and a leader. Henceforth,
the success of Elon is demonstrated by his motivation which is clear reflected in his ideas and
motivating saying such as “If I Say big then I mean big” “If something is important for the
person than if the situations are odd or against still the person should try attempting it.
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3. Elon Musk represent ethical leadership and the advantages and disadvantages of ethical
leadership
Ethical is the term which demonstrate the right and wrong of the situation or a person.
This concept assists the individuals in maintaining the trust and honestly when implementing
their ideas in practice for society (Walumbw and et.al., 2011). These are the values and beliefs of
person with the help of which the person formulates his or decisions. Ethical leadership
demonstrate the leading pattern of individuals where it is important for the person to direct its
team keeping in mind all the ethical values, beliefs and practices which protects the rights and
dignity of other people. In ethical leadership, it is important for the individual to be honest trust
worthy, fair and reliable in context to all people who are working with the leader. However,
Ethical leadership of Elon is demonstrated by his idea and innovation like, he analysed the
increasing impact of global warming which is raising due to emission of harmful gases and fossil
fuels. Therefore, he planned to launch electric car which will assist the people in minimizing cost
and will preserve environment and climatic condition. The idea created revolution as the
innovation was focused on reducing the influence of global warming. Further, his ides of
preserving the were generation because the people over utilise the power resources he planned to
implement solar city for which he even provided financial support to its customers.
Advantages and disadvantages of ethical leadership are as follows:
Advantages Disadvantages
Ethical leadership assist the person in leaving
positive impact on the minds of people. For
instance, like in case of Elon with his positive
idea and innovation he has good and trust
worthy reputation in society.
Ethical leadership becomes difficult because in
this the person has to potray to be right in from
of consumers which is negative for both the
society and for the reputation of business
(Avey, Palanski and Walumbwa, 2011.).
Ethical leadership reduces the chance of
getting into wrong doings, awful activities and
errors which assist the person in building
strong relation with employees ad customers of
organisation.
Implementing innovation and ideas keeping in
mind the ethical value and beliefs becomes
costly for the business and person.
It assists the person in formulating ideas When the person followed ethical leadership
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keeping in mind the legal framework and
regulations impose by government to protect
human rights
concept than the individuals lacks the support
of management.
It is important for the person and business organisation to follow the concept of ethical
leadership as it assist the person in establishing effectiveness in ideas and innovation (Kim and
Brymer, 2011). Further, it helps in maintain the culture of organisation and sets the standard for
treating employees. The ethical leader aims at proving justice in all conditions and focus on
respecting everyone that is, all employees, customers, management, shareholders, society, etc.
(Vaccaro, Jansen and Volberda, 2012). According to the study of Ethical leadership it has been
determined that Elon is an ethical leader who is clear with his innovation and plans. The person
is successful in all his idea because of his honestly and generous behaviour towards everyone.
The challenges faced by Musk turned into a good human and now he is only focused on creating
ideas which will either benefit society or environment. Apart from this Elon has all the qualities
of ethical leaders that is he is decision maker, focuses on encouraging initiative, providing justice
in all condition. Apparently the go green and power saving idea of Musk are also ethical and
denotes that the person is fully involved in developing a stable and safe environment to live.
CONCLUSION
The report summarized it is important for the individuals to follow specified leadership
style and theories in order to perform effectively and to attain specified goals and objectives. It
evaluated the case study of Elon Musk who is currently the hottest name in Silicon Valley and
according to him, if the situation is odd still the person should try accomplishing it goals.
Further, the report outlined the transformational leadership style used Elon which assisted him in
motivating people and setting vision for innovation for the people who plans a start-up. It
analysed the success and ideas of Musk like go green save power, save cost and time to enhance
the living pattern of society to reduce impact of global warming and over utilisation of power.
Thus, it determined the ethical leadership concept which is important for the person to follow in
order to establish effectiveness in ideas and innovation.
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REFERENCES
Books and Journals
Avey, J.B., Palanski, M.E. and Walumbwa, F.O., 2011. When leadership goes unnoticed: The
moderating role of follower self-esteem on the relationship between ethical leadership
and follower behavior. Journal of Business Ethics. 98(4). pp.573-582.
García-Morales, V.J., Jiménez-Barrionuevo, M.M. and Gutiérrez-Gutiérrez, L., 2012.
Transformational leadership influence on organizational performance through
organizational learning and innovation. Journal of business research. 65(7). pp.1040-
1050.
Hernandez, M., Eberly, M.B., and Johnson, M.D., 2011. The loci and mechanisms of leadership:
Exploring a more comprehensive view of leadership theory. The Leadership Quarterly.
22(6). pp.1165-1185.
Kark, R. and Shamir, B., 2013. The dual effect of transformational leadership: Priming relational
and collective selves and further effects on followers. In Transformational and
Charismatic Leadership: The Road Ahead 10th Anniversary Edition. Emerald Group
Publishing Limited. (pp. 77-101).
Kim, W.G. and Brymer, R.A., 2011. The effects of ethical leadership on manager job
satisfaction, commitment, behavioral outcomes, and firm performance. International
Journal of Hospitality Management. 30(4). pp.1020-1026.
Shondrick, S.J., Dinh, J.E. and Lord, R.G., 2010. Developments in implicit leadership theory and
cognitive science: Applications to improving measurement and understanding
alternatives to hierarchical leadership. The Leadership Quarterly. 21(6). pp.959-978.
Vaccaro, I.G., Jansen, J.J. and Volberda, H.W., 2012. Management innovation and leadership:
The moderating role of organizational size. Journal of Management Studies. 49(1).
pp.28-51.
Walumbwa, F.O. and et.al., 2011. Linking ethical leadership to employee performance: The roles
of leader–member exchange, self-efficacy, and organizational identification.
Organizational Behavior and Human Decision Processes. 115(2). pp.204-213.
Wang, G., Oh, I.S. and Colbert, A.E., 2011. Transformational leadership and performance across
criteria and levels: A meta-analytic review of 25 years of research. Group &
Organization Management. 36(2). pp.223-270.
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