MGT 522 - Leadership: Impact of Transformational Leadership Theory

This report examines transformational leadership theory, focusing on how leaders influence individuals and organizations. The introduction highlights the importance of effective leadership in setting clear goals and motivating employees. The literature review explores various leadership approaches, emphasizing the leader's role in modeling behaviors, setting expectations, and reinforcing accountability. The discussion delves into the four main components of transformational leadership (inspirational motivation, idealized influence, intellectual stimulation, and individualized consideration) and their impact on organizational performance and employee innovation. It also covers the influence on absorption capacity. The conclusion reinforces the theory's relevance in improving organizational performance, fostering learning, and stimulating interaction among employees. The report is based on an assignment for MGT 522, adhering to the structure outlined in the assignment brief, and includes a detailed literature review and analysis of the theory's impact on individual and organizational behavior.

Running Head: Leadership
Transformational leadership
Name of the Student:
Name of the University:
Author’s Note

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Introduction
This assignment is based on the leadership theory and is specified on the
transformational leadership approach. The aim of the assignment is to discuss the ways in
which a leader in the organisation influences the individual and the way it motivates the
employees to achieve their objectives (Dugan, 2017). The focus of this paper is based on the
transformational leadership theory and its impact on the organisation and leadership behavior
and performance. Leadership is vital because it sets a clear target and vision to communicate
effectively with the subordinates or employees (Thompson & Glasø, 2015).
Literature Review
To run an organisation effectively and efficiently it is very important to have a good
leader who knows the art of motivating a team and contribute its effort to achieve the
common goal (Thompson & Glasø, 2015). They are considered as the people in the group
who possesses the combination of personality and makes the leadership skill as a want to
follow their direction. The different ways in which the leader influences the organisation and
individual are:
Model Behaviors: the leaders must set himself or herself as an examples for others. The
employee in the team looks towards the leader for assistance and the leader must be capable
enough to assist its team member in the correct path.
Setting Expectation: the leader must provide its team members with resources, opportunity
and tools to meet their expectation and ability (Collinson & Tourish, 2015).
Reinforce a culture of accountability: accountability stands to be the most important way in
which the leader can influence the culture of the organisation. The leader holds the people
who are accountable for particular work then it becomes easier for the rest of the employees

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to understand that they are accountable for particular contribution which they can make.
Providing a detail job description helps to build up the culture and clearly establish the
measures like increasing sales and customer satisfaction.
Discussion
Transformational leadership theory can be defined as the theory of leadership where a
leader can work with its team members to identify the changes required, creating a mission
and vision to guide the changes which will be made and then further executing the change
with commitment of the leaders as wells as of the group members (Ghasabeh, Soosay &
Reaiche, 2015). This is termed s an integral part of the organisation where a full range of
leadership is seen. There are four main components of the transformational leadership which
are inspirational, motivation, stimulation and idealized influence. These components are inter
linked with each of the employees and organisation. The influence or impact of
transformational leadership theory on the organisation and individual are certainly due to the
fundamental attitudes and assumptions on the employee while creating a common mentality
to reach the goals of the organisation (Mittal & Dhar, 2015). It can be explained that
transformational leadership just unlike transitional leadership stimulates the innovation and
knowledge while it assist in generating the advantage of the organizational performance.
While implying the theory of transformational leadership it can be observed that the
leaders tend to be more committed to the style of leadership they have adopted and
undertakes self-evaluation of their ways of action (Mittal & Dhar, 2015). It is perceived by
the application of this theory that transformational leaders are inspiring, intellectual and have
that charisma where they can motivate the employees. These are the leaders who encourage

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good communication channel between himself and herself and with the employee and is
comprised with the spirit of trust and shares its experience and knowledge.
The impact on the organisation in case of adopting transformational leadership causes
to influence absorption capacity (Hamad, 2015). The leaders cater towards the improvement
of employee, designs an organizational structure for proper functioning of resources and
assist in developing the intense effort on strengthen the organisation capacity (Al-Husseini &
Elbeltagi, 2016). The absorption capacity in the organisation for the firm involves a clear
imagination of roles and responsibility. On the other hand the transformational leadership
theory stimulates the transfer of explicit and tactic knowledge in the organisation and in
individuals also. These knowledge is said to be more expressive and strategic as it generates
sustainable competitive advantage and improves the organizational performance.
Conclusion
Hence it can be concluded that transformational leadership theory tends to confront
the reality by drawing the intellectual capital and learning. It influences the different level of
management with improved techniques in organizational performance and catering different
innovation method. These leaders are considered as the key to integration process and
construct a learning within the organisation. However it results in creating a climate which
caters to stimulate the disciple and interaction within the employees in the organisation.

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Reference
Al-Husseini, S., & Elbeltagi, I. (2016). Transformational leadership and innovation: a
comparison study between Iraq's public and private higher education. Studies in
Higher Education, 41(1), 159-181.
Collinson, D., & Tourish, D. (2015). Teaching leadership critically: New directions for
leadership pedagogy. Academy of Management Learning & Education, 14(4), 576-
594.
Dugan, J. P. (2017). Leadership theory: Cultivating critical perspectives. John Wiley & Sons.
Ghasabeh, M. S., Soosay, C., & Reaiche, C. (2015). The emerging role of transformational
leadership. The Journal of Developing Areas, 49(6), 459-467.
Hamad, H. (2015). Transformational leadership theory: Why military leaders are more
charismatic and transformational?. International Journal on Leadership, 3.
Mittal, S., & Dhar, R. L. (2015). Transformational leadership and employee
creativity. Management Decision.
Thompson, G., & Glasø, L. (2015). Situational leadership theory: a test from three
perspectives. Leadership & Organization Development Journal.