ASSIGNMENT ON LEADERSHIP DEVELOPMENT

(INDUSTRIAL PSYCHOLOGY)

SUBMITTED TO - DR.MONIKA SHARMA

CORDIA INSTITUTE OF BUSINESS MANAGEMENT

SUBMITTED BY- JASWINDER KAUR

MBA (4TH SEM)

ROLL NO.-1402
 Transformational leadership

Transformational leadership is a theory of leadership where a leader works with teams to

identify needed change, creating a vision to guide the change through inspiration, and executing
the change in tandem with committed members of a group;[2] it is an integral part of the Full
Range Leadership Model. Transformational leadership serves to enhance the motivation, morale,
and job performance of followers through a variety of mechanisms; these include connecting the
follower's sense of identity and self to a project and to the collective identity of the organization;
being a role model for followers in order to inspire them and to raise their interest in the project;
challenging followers to take greater ownership for their work, and understanding the strengths
and weaknesses of followers, which allows the leader to align followers with tasks that enhance
their performance. It is also important to understand the qualities a transformational leadership
can bring to a work organization. Transformational leaders are strong in the abilities to adapt to
different situations, share a collective consciousness, self-manage, and be inspirational while
leading a group of employees.

Transformational leadership is when leader behaviors influence followers and inspire them to
perform beyond their perceived capabilities. Transformational leadership inspires people to
achieve unexpected or remarkable results. It gives workers autonomy over specific jobs, as well
as the authority to make decisions once they have been trained. This induces a positive change in
the follower’s attitudes and the organization as a whole. Transformational leaders typically
perform four distinct behaviors, also known as the four I's. These behaviors are inspirational
motivation, idealized influence, intellectual stimulation, individualized consideration.

Definition

According to Bass,[7] transformational leadership encompasses several different aspects,

including:

 Emphasizing intrinsic motivation and positive development of followers

 Raising awareness of moral standards
 Highlighting important priorities
 Fostering higher moral maturity in followers
 Creating an ethical climate (share values, high ethical standards)
 Encouraging followers to look beyond self-interests to the common good
 Promoting cooperation and harmony
 Using authentic, consistent means
 Using persuasive appeals based on reason
 Providing individual coaching and mentoring for followers
 Appealing to the ideals of followers
 Allowing freedom of choice for followers

There are 4 components to transformational leadership, sometimes referred to as the 4 I's:

 Idealized Influence (II) – the leader serves as an ideal role model for followers; the
leader "walks the talk," and is admired for this. A transformational leader embodies the
qualities that he/she wants in his/her team. In this case, the followers see the leader as a
model to emulate. For the followers, it is easy to believe and trust in a transformational
leader.
 Inspirational Motivation (IM) – Transformational leaders have the ability to inspire and
motivate followers through having a vision and presenting that vision. Combined, these first
two I's are what constitute the transformational leader's charisma. A transformational leader
manages to inspire the followers easily with clarity. The transformational leader convinces
the followers with simple and easy-to-understand words, as well as with their own image.
 Individualized Consideration (IC) – Transformational leaders demonstrate genuine
concern for the needs and feelings of followers and help them self-actualize. This personal
attention to each follower assists in developing trust among the organization's members and
their authority figure(s). For example, the transformational leader can point out the problems
 of a member working in a group. From this perspective, the leader can work towards training
and developing a follower who is having difficulties in a job. This is an important element
because teams are able to rely on and work together, so decisions can be made more quickly,
while the transformational leader increases their buy-in.[9]
 Intellectual Stimulation (IS) – the leader challenges followers to be innovative and
creative, they encourage their followers to challenge the status quo. A common
misunderstanding is that transformational leaders are "soft," but the truth is that they
constantly challenge followers to higher levels of performance.[8]

Characteristics

Five major personality traits have been identified as factors contributing to the likelihood of an

individual displaying the characteristics of a transformational leader. Different emphasis on
different elements of these traits point to inclination in personality to inspirational
leadership, transactional leadership, and transformational leadership. These five traits are as
follows.[10]

Extraversion

The two main characteristics of extraverts are affiliation and agency,[10] which relate to the social

and leadership aspects of their personality, respectively. Extraversion is generally seen as an
inspirational trait usually exhibited in transformational leadership.

Neuroticism

Neuroticism generally gives an individual an anxiety related to productivity which, in a group

setting can be debilitating to a degree where they are unlikely to position themselves in a role of
transformational leadership due to lower self-esteem and a tendency to shirk from leadership
responsibilities.[10]
Openness to experience

Creative expression and emotional responsiveness have been linked to a general tendency of
openness to experience.[10] This trait is also seen as a component of transformational leadership
as it relates to the ability to give big-picture visionary leadership for an organization.

Agreeableness

Although not a trait which specifically points to transformational leadership, leaders in general
possess an agreeable nature stemming from a natural concern for others and high levels of
individual consideration.[10] Charisma and idealized influence is a classic ability of individuals
who possess agreeability.[10]

Conscientiousness[edit]

Strong sense of direction and the ability to put large amounts of productive work into tasks is the
by-product of conscientious leaders.[10] This trait is more linked to a transactional form of
leadership given the management-based abilities of such individuals and the detail oriented
nature of their personality. Results suggest that transformational leaders might give greater
importance to values pertaining to others than to values concerning only themselves.[11]

Studies have shown that subordinates' and leaders' ratings of transformational leadership may not
converge. According to leaders' self‐ratings, the extraverted, intuitive and perceiving preferences
favor transformational leadership. On the contrary, subordinates' ratings indicated that leaders
with sensing preference are associated with transformational leadership.[12]
 Authentic Leadership

Authentic leadership is a management style in which leaders are genuine, self-aware, and
transparent. An authentic leader is able to inspire loyalty and trust in her employees by
consistently displaying who she really is as a person, and how she feels about her employees'
performance. Authentic leadership is the single strongest predictor of an employee's job
satisfaction.

Authentic Leadership Theory

There are four distinct components to the Authentic Leadership Theory. Let's dive into those,
now.

1. Self-Awareness

As a leader, it's critical you have a strong sense of self, including your strengths, weaknesses, and
values. It's impossible to demonstrate authenticity as a leader if you're unsure of who you are or
what you stand for in the first place.

Additionally, by displaying both your strengths and weaknesses to your team, you're able to

demonstrate that you have nothing to hide, and don't play games. In this way, you're better
equipped to build trust among your team, and when your employee makes a mistake, she'll feel
more comfortable admitting her error to you.

Self-awareness is also critical for you to grow as a leader, and strengthen other components of
authentic leadership. For instance, perhaps you've noticed you don't do a great job at displaying
transparency with your team. By acknowledging this weakness, you can take steps to rectify it.
Self-awareness is vital for acting appropriately as a leader, and feeling empathy for how your
employees might perceive your feedback. For instance, perhaps you feel a conversation you had
with your team was demoralizing -- you'd just received some disappointing news about your
team's performance, and you'd spoken out of frustration. It's critical you seek feedback from your
environment by asking your team what you can do to help them improve moving forward.

Additionally, perhaps you can mitigate these issues in the future by regularly practicing self-
observation, so you're able to notice, in the moment, "I am very frustrated right now, so I will
wait until I am calm to have this conversation with my team."

2. Relational Transparency

Passive aggression, subtle messaging, and convoluted feedback have no place in leadership. To
truly foster authenticity, it's critical you remain genuine, straightforward, and honest with your
team. Let them know where they stand -- if they mess up, tell them.

While it might seem counterintuitive -- "How will I become close to my team if I am often
providing constructive rather than positive feedback?" -- it works in your favor in the long-run,
as your employees trust that you are not "hiding" your true feelings regarding their performance.

Transparency and honesty must be encouraged from the leadership level if you want your
business to be successful. For instance, when Former President and CEO of Ford, Alan Mulally,
began working at Ford, he implemented a system in which business leaders would produce
color-coded charts at each of their meetings -- green to signify success, red to signify failure.

At the time, Ford was forecast to lose 17 billion that year. At the meeting, however, morally
noticed every chart was green. He recognized that Ford's culture was one in which leader’s hid
problems, and avoided transparency out of a fear for job safety.

3. Balanced Processing

A leader needs to make decisions and stay true to her decision in the face of opposition -- but she
must also be capable of receiving and considering alternative viewpoints before choosing a plan
of action.
When making major decisions, it's important you ask for alternative opinions and remain open to
discussion. While it's important you stick to your values, it's equally critical you
seek out opposing viewpoints, which can help you see flaws in your initial course of action, or
enable you to strengthen your argument by understanding all points of view.

Additionally, if you want to be an authentic leader, it's critical you create an environment in
which employees feel both safe and encouraged to share their opinions. These ties back to self-
awareness -- you must be self-aware enough to accept that your opinion, by itself, is likely
biased or partial. By collecting outside feedback, you're able to see more potential weaknesses in
your decision.

4. Internalized Moral Perspective (“Do the Right Thing”)

An authentic leader needs to know when to put the needs of the company and its customers
ahead of herself and her team. Ultimately, a leader should be focused on doing the right thing for
the long-term success of the business.

Additionally, it's critical a leader have strong ethical values and integrity, and exercise these
traits even in the face of tempting shortcuts.

For instance, let's say your employee comes to you with a "make money quick" scheme -- his
idea is to make it difficult for customers to know how to cancel their subscription, so they are
forced to keep paying unless they call up customer support.

As a leader, it's important you recognize the downfall of this type of decision. While it could
temporarily help boost your team's numbers, it's not a decision made out of integrity or fairness
for your customer, and won't result in lasting loyalty.

So, what is Leading by Walking Around

Leading by Walking Around, sometimes called LBWA, means what it sounds like: you walk
around and talk one-on-one with team members. This kind of casual conversation facilitates
more hands-on participation in the life of your organization.
 Some might argue that LBWA is a dated approach, when today’s technology offers time-saving
access to alternative forms of communication (texting and emails, for example).  However, smart
leaders know there’s no substitute for getting out from behind the desk to explore what’s really
going on inside the organization.

Ready to start walking?

Here are some ideas for successfully implementing this simple but powerful tool.

 Do it for the right reasons. Don’t walk around because you think you “have” to. Instead,
cultivate a sincere interest in members of your team and in helping them do their best and
achieve their goals.
 Get in the habit. Make walking around part of your routine. Set aside time each day to
visit different departments and catch up on how things are going.  Go into your people’s office
and just sit down.  It might freak them out the first time you do but eventually they realize you
are there to help and will open up.
 Keep it casual. Your work may be serious business, but it’s okay to relax a little and have
fun. It’s also okay if non-work topics come up from time to time. People like having a boss who
cares about their kids or hobbies. But don’t overdo it – nobody wants to feel like you’re looking
over their shoulders all the time.
 Be nice and don’t play favorites. Be an equal opportunity walker. Don’t have just one
department or handful of people you talk to, while ignoring the rest.
 Pay attention. You have two ears and one mouth, so listen more than you talk. Ask for
feedback, suggestions, and ideas. Everyone likes knowing that their opinions matter.
 Be honest and responsive. Answer questions openly and honestly. If you don’t have an
answer on the spot, make a point to find out and follow up as quickly as possible.  Also, if it’s a
suggestion you know can’t be implemented, be honest and tell them why.
 Don’t circumvent other managers.  Some employees may take advantage of your
presence to complain about a supervisor who reports to you.  Counsel them to discuss any
concerns or issues fully with their supervisor first.  If you have concerns regarding the judgment
of the supervisor, don’t indicate this to the employee, but follow up privately with the supervisor.
 Share your dreams.  As a Yukon Dog Team handler used to say, “The view only changes
for the lead dog.”  LBWA is a solid opportunity to make sure when you lead the organization in
a new direction, the employees behind you don’t trip over themselves trying to follow.  Tell them
about your vision for the organization, and where they fit into the “big picture.” Reveal the goals
and objectives you want them to help you fulfill together as a team.

 Praise in public, criticize in private.  Look for victories.  When you find one, applaud it.
Thank them on the spot in front of others.

Introducing Level 5 Leadership

The concept of Level 5 Leadership was created by business consultant, Jim Collins. He wrote
about it in a well-respected 2001 Harvard Business Review article, and published his research
in his popular book, "Good to Great."
The concept came about during a study that began in 1996, when Collins began researching what
makes a great company. He started by looking at 1,435 companies, and ended up choosing 11
truly great ones. These 11 companies were all headed by what Collins called "Level 5 Leaders."

He found that these leaders have humility, and they don't seek success for their own glory; rather,
success is necessary so that the team and organization can thrive. They share credit for success,
and they're the first to accept blame for mistakes. Collins also says that they're often shy, but
fearless when it comes to making decisions, especially ones that most other people consider
risky.

Level 1: Highly Capable Individual

At this level, you make high quality contributions with your work. You possess useful levels of
knowledge; and you have the talent and skills needed to do a good job.
Level 2: Contributing Team Member

At Level 2, you use your knowledge and skills to help your team succeed. You work effectively,
productively and successfully with other people in your group.

Level 3: Competent Manager

Here, you're able to organize a group effectively to achieve specific goals and objectives.

Level 4: Effective Leader

Level 4 is the category that most top leaders fall into. Here, you're able to galvanize a department
or organization to meet performance objectives and achieve a vision.

Level 5: Great Leader

At Level 5, you have all of the abilities needed for the other four levels, plus you have the unique
blend of humility and will that's required for true greatness.

It takes time and effort to become a Level 5 Leader. But the good news is that it can be done,
especially if you have the passion to try.

Again, it's important to realize that you don't have to progress through each level in turn in order
to get to Level 5. But you do need the capabilities found in each level in order to achieve Level 5
status.