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Transformation Leadership

In: Business and Management

Submitted By hoangnghia7611
Words 3054
Pages 13
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The rate of changes in organizations has been increased by a diversity of external forces such as intensified global competition, the increases in technology, reduced revenues and customer dissatisfaction (Attaran, 2004). These changes have led to a rise in downsizing, restructuring, reorganization, mergers and acquisitions. Nevertheless, most entrepreneurs’ efforts in changing organizations have failed to achieve the expected outcomes in terms of revenue growth, cost reduction, productivity and employees’ commitment (Marks, 2006). Although the failure of organizational changes is attributed by several various elements, Seo et al (2012) suggested that the human factor, particularly leaders, plays the most significant role in delivering the effectiveness of organizational change. Consequently, it is necessary to investigate leadership theories and how effectively it may result in effective organizational change. Firstly, the transformational leadership concept will be analyzed to evaluate their contribution to corporate changes. Subsequently, the case of ‘Centurion operation at Philips Electronics’ is applied to reflect this theory in practice. The third sector will examine the role of culture leadership in organisational changes. Finally, the insights of this theory will be assessed through one practical example in relation to mergers and acquisitions among companies, Renault-Nissan and Daimlerchrysler-Mitsubishi .
Transformational leadership effectively changes organizations by engaging in a process, which compromising a chain of stages: identifying the need for change, generating a new vision, subsequently implementing change through individualized consideration and intellectual stimulation(Tichy and Devanna, 1990). Firstly, charismatic leaders are competent in undertaking the suitable actions at the suitable phase in the transformational process. When...

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