Transformational Leadership 's Influence On Employee Engagement And Organisational Performance

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Ever since its conceptual introduction by Burns (1978), transformational leadership has been applied by numerous leaders over the years. It was later on developed by various academics, notably Bass (1985) with his presentation of the four pillars of transformational leadership – the four I’s – idealised influence/charisma, inspirational motivation, intellectual stimulation and individualised consideration. Observations have been made across these many studies about the transformational leadership’s influence on employee engagement and organisational performance. In this assignment, we intended to critically assess how well-known transformational business leaders have managed to achieve company-oriented objectives by improving employee…show more content…
Harter, Schmidt & Hayes (2002, in Jones and Harter, 2005) and Maslach, Schaufeli and Leiter (2001) believe that employees need to be involved, energetic and well-organized when facing difficulties in order to become engaged at work. This behaviour can be boosted by transformational leaders who can intellectually stimulate their workers as well as display individually considerate behaviour. Leaders who apply transformational leadership principles tend to improve both the value and the significance of the work, and in turn will increase work satisfaction from workers (Ghadi, Fernando and Caputi, 2010). Employees will feel more motivated (Kahn, 1990), therefore they will be more likely to feel engaged in the workplace (Schaufeli and Bakker, 2004; Macey and Schneider, 2008). Jack Welch 's mantra consisted of encouraging empowerment of managers and employees (Investopedia, 2016). Empowerment has an intrinsic and an extrinsic role in the stimulation of engagement (Tuckey, Bakker and Dollard, 2012). Moreover, engagement has shown to have a positive influence over organisational performance (Markos and Sridevi, 2010). Besides showing traits of a transformational leader, Welch undertook the management of General Electric with a somewhat “ruthless toughness” (Thompson, 2004:44-45) that was highly frowned upon, and deemed to be far from an ideal model of leadership. The organisation’s culture made leaders
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