The effect of transformational leadership style on organizational Innovation

The effect of transformational leadership style on organizational Innovation 1. Introduction This study endeavors to develop comprehension of how transformational leadership style of top management affects innovation at the organizational level. The topic is of paramount importance because of the ever increasing pressures of modernization and innovation on todays global economy. It has become indispensable to practice a leadership style that makes firms innovative and adaptive to change. Firms are shifting their focus from knowledge economy to creative economy, where corporations will compete on the basis of imagination, innovation and creativity (Oke, Munshi Walumbwa, 2009) Boston Consulting Group Inc surveyed over 900 senior executives and identified innovation as the key driver of top-line revenue. Analysis of firms transforming due to innovation provides evidence for this statement. For example, the highly successful iPod of Apple Inc.s, that earned devastating revenues for the company; the role of Blackberrys success in the transformation and emergence of Research in Motion; process innovation at Southwest Airlines Co. that transformed it as an economical and triumphant airline; and Procter Gamble Co. outperforming its competitors by focusing on design innovation. Innovation aims at bringing about change in the status quo. It can be defined as discovering (creative thinking ideas) and commercializing those discoveries (implementing the creative ideas). Creativity new idea generation alone are insufficient for innovation; implementation is also a cornerstone of the innovation process. (Oke, Munshi, Walumbwa, 2009) Plentiful studies have led to the identification of factors that can stimulate innovation at the organizational level. In broad terms, innovation is the adoption or execution of unaccustomed and convenient ideas by individuals in organizations (Amabile Conti 1999) p.360). Factors that are known to have an influence on innovation include leadership (Mumford Gustafson, 1998; Amabile, 1998), a work environment that is conducive for innovation (Amabile, 1998; Oke, Munshi Walumbwa, 2009), CEO salary (Markman, Balkin and Gomez-Mejia, 2000), organizational culture and climate (Mumford Gustafson, 1998; Jung, Wu Chow, 2008; Oke, Munshi Walumbwa, 2009), environmental attributes (Jung, Wu Chow, 2008), learning capability and intra-organizational networks (Tsai, 2001) and job complexity type of supervision (Oldham Cummings, 1996). Among these abundant factors, the leadership behavior of managers has been spotted as one of the most important of all (Amabile, 1998; Jung, 2001; Mumford, Sc ott, Gaddis Strange, 2002). Leadership was merely a concept before the 19th century and it was in the start of the 19th century that it emerged as a word in English language (Davis Cushing). Over the years, leaders and leadership have been distinctly defined by various scholars. Leadership is a process whereby a leader changes the course of action of another group, due to the interaction of his personality characteristics and those of the group (Bogardus, 1934). Leadership is the direction of human collaborators for the accomplishment of a goal. A leader successfully guides his human assistants for the achievement of particular ends. (Prentice, W.C.H. 1961). Leadership is a goal directed endeavor with the aim to influence the activities of followers through communication process. (Donelly, J.H. Ivancevich, J. M. Gibson, J.L. 1985 Leadership is the situational effort towards goal achievement by the process of influencing the individual or group activities. (Hersey, P. Blanchard, K, 1988). Leadership is the f ormulation of a transparent and complete system of expectations for the purpose of identification, arousal and utilization of strengths of all the resources of an organization, the most important of which is human resource (Batten, J.D. 1989). Leadership is the art of influencing individuals to yield their best output/ performance for the accomplishment of a goal, project or objective. (Cohen, W.A. 1990). Leaders are the people who obtain commitment from a working group of individuals and then motivate them to accomplish the outcomes of a pre-planned direction. (Conger, J.A.1992). Leadership is a process in which a leader sets the goal for an individual or group of individuals and takes all of them together with him or her with proficiency and devotion (Jacques E. Clement, S.D. 1994). Leadership is an unrealizable trait that cannot be distinctly defined. This in fact is a good phenomenon, because if the followers were aware of the definition of leadership, they would probably overr un their leaders. (Scott Adams, 1996). Effective leadership is about enabling ordinary people to deliver extraordinary results in the face of challenge and change and to constantly turn in superior performance to the long-term benefit of all concerned (Charlton, 1993). The more recent definitions conceive leadership in terms of influence relationships, power differentials, persuasion, influence on goal achievement, reinforcement, role differentiation, initiation of structure, and perceived attributions of behavior that are consistent with what the perceivers spotted leadership to be. Recently, many management scholars and gurus have identified adaptive leadership as the key enabler to cope with the ever increasing challenges of the corporate world. (Bass, Avolio, Jung Berson, 2003). So the adaptive leadership behaviors that have proved to be more effective than other leadership styles in organizational innovation have been labeled as transformational. (Lowe, Kroek, Sivasubramaniam, 1996; Gardner Avolio, 1998; Howell Avolio, 1993). Transformational leadership capabilities continue to be the hallmark of innovative firms. Successful leaders like J.R. Immelt, CEO of General Electric; A.G.Lafley, CEO of P&G; Ratan Tata, chairman of Tata Motors Tata Group and Steve Jobs of Apple are the prominent figures who have fostered innovation by their adaptive behaviors. Transformational leadership holds four theoretically discrete dimensions: charisma or idealized influence, inspirational motivation, intellectual stimulation and individual consideration. Idealized influence reflects the degree to which followers admire and hold their leaders as role models. Leaders exhibiting idealized influence are ethical, consistent, share risks with followers and prefer the needs of their followers above their own needs. Inspirational motivation points to the degree motivation of followers by delineating new opportunities, providing meaning and challenge to followers work and articulating a strong, realistic and shared vision of the future. Intellectual stimulation refers to the ability of a leader to question the assumptions and thinking of followers, reframe problems, stimulate intellectual curiosity, approaching problems in new ways, soliciting creativity and innovation from followers through novel approaches and avoiding open criticism for individual errors. Finally, leaders who provide individualized consideration pay attention to individual needs for growth, development, support and achievement. They act as coaches or mentors and establish a favorable environment for innovation; where values are diversified and learning opportunities are created (Bass Avolio, 1993) (Some versions of Bass Full-Range Leadership Theory identify 5 components of transformational leadership by breaking down idealized influence/ charisma into idealized influence or attributed charisma. For the sake of simplifying this research, idealized influence and charisma have been grouped together in this study). 2. Research Design 2.1 Main Objectives The aim of this study is to probe the following objectives: To discuss the philosophy, attributes and elements of transformational leadership and innovation To spot the existence of transformational leadership style at Telenor Pakistan To the asses the level of organizational innovation Telenor Pakistan To identify the effect transformational leadership style on organizational innovation 2.2 Hypotheses to be tested The objective of this study is to spot the presence of attributes of transformational leadership i.e. idealized influence, inspirational motivation, individualized consideration and intellectual stimulation, estimate the level of organizational innovation and examine the effect of transformational leadership on organizational innovation. The working hypothesis within this context will be as under: H0: Transformational leadership has no effect on organizational innovation. H1: Transformational leadership has strong effect on organizational innovation. 2.3 Scope of the study The range of application of this study is limited to the telecommunication sector in Pakistan with specific focus on Telenor (Peshawar). Transformational leadership style will be judged on the basis of four dimensions, that is, charisma or idealized influence, inspirational motivation, intellectual stimulation and individualized consideration. Furthermore, the effect of transformational leadership on organizational innovation will be analyzed. 3. Review of Literature (Burns, 1978) stated that transformational leaders stand above the common place. They indulge in a mutual interaction with their followers that raises the understanding, goals and mission that results in the ultimate arousal and transformation of both the leader and the followers. (Bass, 1985) At the other end to transformational leadership lies transactional leadership; where the leaders try to maintain the status quo. Followers are motivated on the base of extrinsic rewards, such as promotion and monetary benefits. It is an everyday terrestrial transaction of value, where leaders only provide needed value to individuals in exchange for their services. (Jane. M. Howell, Christopher A. Higgins, 1990) The most successful leaders are gifted with qualities of transformational leadership and charisma. They are far more influential and innovative than the leaders having style other than transformational. (David A. Waldman, Bernard M. Bass, 1991) linked the themes of nurturant and persistent leadership with transformational leadership theory. Furthermore, the role of transformational leadership behavior in various stages of successful innovations was clarified and implications were presented regarding the proposed model. (Dougherty Hardy, 1996) Transformational leaders intellectually stimulate their followers. This fosters unaccustomed and creative thinking and working processes that pave the way for new technology and knowledge, which are necessary for organizational innovation. Amabile, Conti, Coon, Lazenby, and Herron (1996) have spotted the damaging effects of transactional leadership on creativity. Bono Judge (2004) have supported this proposition in their recent meta-analysis. (Sosik, Avolio Kahali, 1997) Transformational leaders easily adapt to exploitative and exploratory thinking processes which in turn yield creative ideas and effective solutions to problems. The effectiveness of transformational leadership at stimulating unconventional and innovative thinking of followers is far greater than that of other leadership styles. (Bass, 1985; Gardner Avolio, 1998) proposed that transformational leaders have the ability to create personal and professional commitment from their followers towards satisfying upper-level needs like self-actualization and self esteem. (Oldham Cummings, 1996; Amabile, 1998; Zhou, 2003) added to this research finding by suggesting that this commitment boosts the inherent motivation of followers, which is considered to be an essential driver of individual creativity and organizational innovation. (House Shamir, 1993; Jung Avolio, 2000; Mumford et.al, 2000) Leaders possessing transformational attributes have the ability to regroup the values and norms of their followers in a better way. They encourage the progress of personal and organizational changes and facilitate their followers to go beyond their initial performance expectations. (A.Oke, 2002) was part of a study carried out on the organizational innovation of AXA insurance, Ireland. It was revealed that due to the transformational leadership style of John. ONeil, the CEO, a non-innovative firm was transmuted into an innovative one. To achieve this level of creativity, the physical spaces were decorated with eye catching colors and employees from all levels and functions were made to work together in order to stimulate creativity. The results of this transformational behavior were soon evident in the form of 150 new business ideas during 6 months. (Shin Zhou 2003) found that positive relation was discovered between transformational leadership and creativity of subordinates on the basis of a study conducted on 290 employees and their supervisors belonging to 46 Korean companies. (Jung, Wu, Chow, 2008) concluded in their research that a positive relation has existence between the transformational leadership of CEO and organizational innovation. This effect is moderated by variables such as organizational structure, culture and external environment. These results are agreed upon after testing multi-sourced data from 50 Taiwanese electronics and telecommunications companies. (Oke, Munshi, Walumbwa, 2009) found that transformational style of leadership strongly enhances creativity and innovation regarding exploratory (creating something of a totally new and radical nature) and exploitative innovation activities (incremental improvements and refinements to something that already exists). These leaders have the ability to transform or change, which makes them the main drivers for innovative processes. (Lale Gumusluoglu, Arzu IIsev, 2009) suggested that transformational leadership style has strong influence on both the individual and organizational innovation. Individually, transformational leadership is positively related to the creativity of employees. Furthermore, transformational leadership and organizational innovation are spotted to have a positive association between them. These results are the outcome of a study conducted on 163 managers and RD personnel from 43 Micro and small sized software development companies from Turkey. (Khan, Rehman and Fatima, 2009) studied managers from telecommunication sector in Pakistan and explored the positive effects of transformational leadership on organizational innovation. (Mariana Makri, Terri A.Scandura, 2010) identified the strong relation of operational leadership (the dimension of leadership which reflects the ability of a CEO to refine the existing paths to growth or tapping new paths by reframing and extending the boundaries of the firm to products and markets) and creative leadership (the ability of a leader to contribute to the social, human and knowledge capital of his firm) with the quantity and resonance of innovation. The hypothesis was tested over a sample of 77 high technology firms. 4. Research Methodology 4.1 Sources of data This research will make use of both primary and secondary data. Transformational leadership style will be judged on the basis of primary data obtained through interview and questionnaire. The level of organizational innovation will be assessed by primary data obtained through questionnaire and secondary data gathered from the companys publicly disclosed financial statements. 4.2 Research instruments Questionnaires and structured interviews will serve as instruments of this research. The extent of transformational leadership will be measured using Multifactor Leadership Questionnaire (Bass and Avolio, 1995) (Annexure-A). MLQ is a well validated measure of transformational leadership and has been used extensively in prior research (Awamleh and Gardner, 1999). Each respondent will be asked to rate five aspects of his/her leaders/ top-managers behavior related to each of the four dimensions of transformational leadership (idealized influence/charisma, inspirational motivation, individualized consideration, intellectual stimulation). The responses will be anchored by a 5-point response scale (1-not at all, 2-once in a while, 3-sometimes, 4-fairly often, 5-frequently, if not always). While measuring organizational innovation, a composite measure will be used to capture the broad aspects of innovative activities (Balkin et als, 2000). Two measures will be used to tap into different aspects of innovation. First is the annual RD expenditure as a percentage of sales revenue over three years prior to this study (i.e.2008-2010). This ratio indicates a firms emphasis on innovation (Hitt, Hoskisson and Kim, 1997; Balkin et al, 2000). These figures will be obtained from the companys publicly disclosed financial statements. Second, different respondents actively following the telecommunication industry will be contacted. The reason is to include different fruits of innovation such as process and service improvements. Each respondent will be offered two sets of questions about the sample firm. The first set includes a single question regarding his/her familiarity with the company. The possible answers will be 1-not familiar with the company at all, 2-somewhat familiar with the company, 3-very familiar with the company. Only the respondents with responses 2 and 3 will be considered. The second set comprises of 20 questions (4 questions each for scanning five types of innovative activities i.e. product innovation, process innovation, marketing innovation, strategic innovation and organizational climate innovation) in order to rate the level of organizational innovation (Annexure B). The 5-point Likerts Scale (1-strongly disagree, 2-disagree, 3-neither agree nor disagree, 4-agree, 5-strongly agree) will be used to anchor the responses. 4.3 Sampling design (a) Universe / population There are many national and multinational telecommunication companies operating in Pakistan. All these national and multinational firms collectively form the population/ universe of this research. Results will be generalized and recommendations will be forwarded considering all these firms. (b) Sample size and selection This research will adopt a case study approach by focusing on Telenor (Peshawar) as the sample firm. A simple random sample of 30 employees of low, middle and top-management of the company will be selected with the aim of assessing transformational leadership. Furthermore, organizational innovation will be judged by studying a random sample of 30 respondents that are directly or indirectly associated with the telecommunication industry in Pakistan.

Peter Weir’s film “Witness” Essay

Peter Weir’s film, â€Å"Witness† reveals that besides our contemporary world, there are other â€Å"worlds† with their own values that are unique. These worlds conflict with the Western world through their variation in lifestyle. The Amish are a community of people who live peacefully in the midst of a robust, crime – riddled contemporary world. Weir presents a film that fits two genres, one of a crime and the other of romance. Within the first ten minutes of the film these two worlds it captures the differences of these two worlds through the use of cinematic techniques. The Amish world is introduced at the very start of the film where the opening visual fades in, to reveal a long shot showing the landscape. There is no use of artificial lighting but merely the natural sunlight of an early morning. This proposes an idea that the Amish community lives in a plain, simplistic, traditional, and a calm lifestyle. The establishing montage of the silent and peaceful world of the Amish becomes apparent through a wide angle shot that pans across the screen in a panoramic view of gently swaying wheat fields from which emerges a small band of black clad people walk silently following one another. Even in this very early part of the movie, the audience has a glimpse of order and conformity. Their black clothes juxtapose the brilliance of the Wheatfield’s clearly portraying their different world. Pennsylvania 1984 is surprising to the viewer, because they might expect a much earlier date. The idea of two worlds is also symbolized by the division of the scene into top half of the sky and the bottom half of the grass. The crossing of the two worlds is portrayed by the Amish moving through the frame from right to left through the grass. This is an unusual technique because usually most movement is from left to right, thus reinforcing their unusual world. Weir’s purpose in presenting such an orderly scene ironically is to exemplify the dystopia of the fast urban life of crime and corruption. The culture clash between the Amish and the modern technological society becomes evident when Eli takes Rachel and Samuel to the station. The camera zooms into the carriage portraying the occupants to be Eli as the driver and Rachel and Samuel as the passengers. An overhead view gives way to long shots of beautiful country landscape and the horse-driven carriage as it is juxtaposed with the truck. The truck a symbolic representation of the modern world and a vehicle that is known to literally thunder its way like a bully on highways has to follow the carriage which was going at its own pace. This demonstrates that the Amish world behind it is not governed by time and will go the way they want. Through the close-ups of Eli, Rachel and Samuel, the audience sees the ‘glassed-in world’ of the Amish as being reclusive and imprisoned as opposed to the free world of faster vehicles. Weir illustrates this sudden imposition of the American way when at the station while awaiting their train. An undershot of the train is gigantic and intimidating which dwarfs the Amish world. He is mesmerized by it all, ‘tours’ the train station. Accustomed to little angels in their books, Samuel is miniaturized by a gigantic figure of an angel. A high angle shot from behind the statue dwarfs Samuel symbolically highlighting the insignificance of their culture to the American way of life. Even among the Amish these worlds there are others who resemble different from the †¦

Drug Cartel Violence Along the Mexican Border Essay

In lines thirty-five through forty-five of Ian McEwan’s Black Dogs, June and Bernard stand upon the precipice of a cliff in the French countryside. The particular description in this section, when teamed with June’s observations as they near the cliff, provide a startling comparison to June’s inner turmoil and the changes inherent to the baby she carries within her womb. Like her own future prospects, the path’s trajectory is a â€Å"steep descent† that fills her with anxiety and place June and Bernard’s relationship and imminent future into the context of a fall. Like the â€Å"bright, empty space† of â€Å"baking rock dropping three hundred feet† , their future stretches out before them and represents the unknowable nature of human relationships. However, perhaps more important in relating to June’s anxiety is her own awareness that such a physical descent of the earth could as easily be seen in as the physical and mental transformation she will go through in becoming a parent. The danger she senses is not merely the physical danger of their present but the psychological and emotional danger inherent to their own relationship with one another and their future child. The couple’s relationship in particular is vulnerable to the chasm that opens up before them with the knowledge of this new life and responsibility. Like the earth at the bottom of this open space, they can guess what the future will bring when they return to England but they cannot truly understand the context of what such a journey entails. There is the sense that they will look back upon this moment for a significance that they can only partially understand. On July 16, 2009, James Bone’s article for the London Times reported a series of murders that had just taken place in Mexico. Michoacan, where the killings have taken occurred, is an area of Mexico along the Pacific coast. As the country’s primary source of opium and marijuana, Michoacan hosts a great deal of drug cartel activity and violence– the most recent being when a dozen federal agent bodies were found on a highway in the mountains. These anti-drug agents are among several who have been killed this year in a series of attacks. This killing spree is reported to have been sparked by the arrest of Arnoldo Rueda Medina, a commander of La Familia cartel, which took place in Morelia– Michoacan’s capital. Seven cities came under attack from La Familia shortly after Medina’s arrest, including the tourist sites of Patzcuaro and Zitacuaro. The twelve bodies that were found on the highway– one woman and eleven men– marks the most severe attack thus far. Found with the bodies were death threats from La Familia, saying â€Å"†¦Join its ranks or leave† and â€Å"Let’s see if you try to arrest another one†, alluding to Medina being arrested. La Familia’s killing spree is reported to be a turning point in the long-standing Mexican drug war, as they are now killing federal agents directly. Some believe this proves that the arrest of Medina was a serious setback for the cartel. According to Jorge Chabat, a drug expert, the cartel’s operations have been negatively affected and they are showing signs of weakness rather than strength. Putting an end to this cartel, however, is seemingly an endless task– and due to La Familia having penetrated the legal system and obtaining protection, it is difficult to speculate when this violence is going to end. Link: http://www. timesonline. co. uk/tol/news/world/us_and_americas/article6715478. ece

Policy Of President Reagan - Free Essay Example

Sample details Pages: 2 Words: 461 Downloads: 8 Date added: 2019/07/03 Category People Essay Level High school Tags: Ronald Reagan Essay Did you like this example? In the election of 1976, Reagan went up against Gerald Fold for the Republican Party position. Reagan was able to keep himself in the head of the media between 1976 and 1980 by writing in a newspaper column and giving daily radio addresses, while being able to remain publicly undeclared about his plans for his presidency in 1980 (History.com Staff, 2009). Reagan mainly focused on fixing the current efficiency of the economy during his presidency, in which he stated, In this present crisis, government is not the solution to our problems; government is the problem (History.com Staff, 2009). President Reagan began to implement policies into government that reduced the federal governments reach into the daily lives and pocketbooks of Americans this included tax cuts to stimulate growth, also known as Reaganomics (Reaganomics, n.d.). Reaganomics advocated for the increase in military spendings, reductions towards specific social programs, and measures taken to deregulate business. Reagan reduced domestic spending by cutting the top marginal tax rate on individual income from 70% to 28%, and the corporate tax rate went from 48% to 34% (Reaganomics, n.d.). His presidency also included eliminating price controls that were placed on oil and natural gases, telephone and cable services to reduce economic regulation (Reaganomics, n.d.). Also, Reagan supported a monetary policy that stabilized the U.S. dollar against foreign policies, in which tax revenues received increased from $909 billion in 1988 from $517 billion in 1980 (Reaganomics, n.d.). Plus, he was able to reduce inflat ion to 4%, and the unemployment rate to under 6% (Reaganomics, n.d.). Don’t waste time! Our writers will create an original "Policy Of President Reagan" essay for you Create order Thus, Reagan worked a lot in the legislative branch of government, and worked with Congress in order to create new tax policies. Reagan also took action for women involvement in government by appointing Sandra Day OConnor to be the first woman to be apart of the U.S. Supreme Court (History.com Staff, 2009). When it came to foreign affairs, Reagan worked in the executive branch to create the Reagan Doctrine. The doctrine, taking place during the increased tension of the Cold War, America provided aid to anti-communist movements occurring in Africa, Asia, and South America (History.com Staff, 2009). In 1983, Reagan announced the Strategic Defense Initiative to help protect America from attacks by Soviet nuclear missiles by developing space-based weapons (History.com Staff, 2009). On the account of foreign affairs, Reagan also sent 800 U.S. Marines to Lebanon as a part of an international peacekeeping force after Israel invaded the nation in June of 1982 (History.com Staff, 2009). Additionally, Reagan was able to form a relationship diplomatically with Mikhail Gorbachev, who was the leader of the Soviet Union in 1985 (History.com Staff, 2009). In November of 1984, Reagan won his reelection by a landslide against Walter Mondale, winning 49 out of the 50 states, the largest number ever won by a presidential candidate in American history (History.com Staff, 2009).