A subject of great relevance to occupational psychologists today is the advancement of leadership development programs. They are also interested in offering coaching to individuals to help them refine their leadership style/approach and gain confidence in their roles as leaders. By using an integrated approach to developing transformational leadership skills, and teach strength-based methods in leadership, organizational leaders can be better equipped to identify opportunities and challenges existing in the leadership space today. Transformational leadership is a leadership theory that describes the behavior of inspirational [political] leaders who transform their followers by appealing to nobler motives such as justice, morality, and peace (Landy & Conte, 2017). The purpose of this paper is to increase awareness of the benefits of transformational/strength-based leadership styles and demonstrate how the adoption of such an approach will benefit society as a whole.
The aim of transformational leadership is to join organizational leaders and followers in a pursuit of a mutual higher purpose (Burns, 1978). Higher purposes in the context of organizational psychology can often mean greater levels of motivation and morale on the part of both leaders and followers. In the future, transformational leadership will become increasingly valuable in further advancing organizational developments such as creating socially responsible business practices. Based on the results of a recent study conducted at the University of Michigan, researchers proposed that participative and considerate behavior on the part of organizational leaders can enhance group effectiveness (Landy & Conte, 2017). As Thorn (2012) points out, the recipe for effective transformational leadership includes the following key ingredients: Building a common vision, inspiring followers, encouraging new approaches to problem solving, continuously developing the skills of subordinates, and establishing superior performance. The points made by Thorn that particularly stand out are: 1.) Inspiring followers, which ties into 2.) Building a common vision, and 3.) Continuously developing the skills of subordinates (Thorn, 2012).
One of the more complex tasks of being a leader is activating intrinsic motivation in others. As seen in companies with effective leadership such as Chip Wilson at Lululemon Athletica, employees often share a common mindset rooted in a shared commitment to the mission of the organization — like an organizational tribe crossed with a social movement. Employees personal values also align strongly with those of the company’s vision. The process of bridging the gap between personal and professional values lays the foundation for the development of intrinsic motivation. Ultimately, what many companies are trying to do is create opportunities for their employees, or tribe, to identify with the organization’s mission by offering them ‘skin in the game’ — an incurrent risk (monetary or otherwise) by being involved in achieving a goal. To work for an organization that allows its employees to prosper professionally as well as on a personal level, has positive effects on the individual’s skill set and confidence. Coupling this with a platform where employees feel a sense of belonging (the ability to identify with the organization’s mission), helps set the stage for organizational prosperity.
Bringing about positive organizational change starts with setting a good example. Welch, Grossaint, Reid, and Walker (2014) emphasize strengths-based coaching and positive psychology to help leaders unlock higher levels of potential by building on their existing skill set, ultimately laying the foundation for their subordinates to accomplish the same. However, there is a catch to the strength-based approach: leveraging existing talents and gifts increases the risk of leaving deficits unaccounted for. As Welch et al. (2014) point out, a potential concern of the approach is that it might lead to ignoring one’s weaknesses or blind spots. Organizational psychologists and other Industrial/Organizational professionals must consider the presence of such blind-spots and / or weaknesses and create a dialogue about them with leaders who are being coached. Burns (1978), contrasted transformational leadership with transactional leadership, which represents the more traditional process of the two styles (Landy & Conte, 2017). The transactional leadership style is marked by a leader showing his or her followers how they can meet personal goals by adopting certain behavior patterns. The transactional leader makes it clear that desirable work behaviors will result in rewards. This invitation to comply with and adhere to strict organizational guidelines may result in extrinsic motivation (i.e. using reward systems to increase worker motivation), but it also eradicates the opportunity for intrinsic motivation. Ways to combat the dilemma include encouragement of transparent discussions about operations and work processes, as this enhances employee commitment (i.e. skin in the game). Ray Dalio, American billionaire investor and founder of the investment firm Bridgewater Associates (with $124.6 billion USD the largest hedge fund by assets under management), has long been an advocate of transparent and open feedback systems, making him a pioneer in transformational leadership. Ray’s exemplary track-record demonstrates that embracing internal and external collaboration may help strengthen organizational structures.
To summarize, transformational and strength-based leadership systems work to develop leaders who are appreciative of their followers. Moore, Cangemi, and Ingram (2013) point out that appreciative leaders have faith in their subordinates and support them in the discovery in and development of their untapped potential and ability. This can strengthen an individual’s belief in his or her potential, which in turn benefits an organization’s efficiency and effectiveness. Transformative leadership is about inspiring others and getting employees to give their best, which are inevitably influenced by the values and disposition of those in leadership roles. A charismatic, yet inexperienced leader can be surrounded by talented people and accomplish amazing things while learning along the way. In conclusion, transformational and strengths-based leadership development programs can yield positive effects not only for the leaders themselves but for their employees as well as the organization.
References
Burns, J. M. (1978). Leadership. New York: Harper & Row.
Business Insider. (May 18, 2018). RANKED: The 10 biggest hedge funds in the US. Retrieved from https://www.businessinsider.com/ranked-the-10-biggest-hedge-funds-in-the-us-2018-5
Giles, S. (2016). The Most Important Leadership Competencies, According to Leaders Around the World. Harvard Business Review. Retrieved from https://hbr.org/2016/03/the-most-important-leadership-competencies-according-to-leaders-around-the-world
Landy, F. J., Conte, J. M. (2017). Work in the 21st Century: An Introduction to Industrial and Organizational Psychology (5th ed.). Hoboken, NJ: Wiley.
Moore, M. L., Cangemi, J. P., Ingram, J. (2013). Appreciative leadership and opportunity — centric approaches to organization success. Organizational Development Journal. Retrieved from https://search-proquest-com.ezproxy.adler.edu/docview/1399979033/F4F7AF1A55A046C8PQ/6?accountid=26166
Thorn, M. I., (2012). Leadership in International Organizations: Global Leadership Competencies. The Psychologist-Manager Journal. 15(3), 158–163. doi: 10.1080/10887156.2012.701130
Welch, D., Grossaint, K., Reid, K., Walker, C. (2014). Strength-Based Leadership Development: Insights From Expert Coaches. Consulting Psychology Journal: Practice and Research. 66(1), 20–37. doi:10.1037/cpb0000002