Leadership is the political, psychological, or social influence of an individual or a group of individuals on a group of other people. Leadership is viewed as both a trait character and in addition a relational concept whereby one individual impacts others. It is a process by which a person influences a group of people to achieve a common goal. A leader has personal skills that give him a distinctive difference and allows him to be listened to and followed by a group of people. Leadership can also be defined as an influential authority based on the relationships the leaders that are established with the members of a group. Leadership theories are critical for our understanding of the potential roles that people can play in shaping routine situations in social and corporate lives (Gardner & Laskin, 2015).
There have been several research studies on leadership theories that have been conducted for a variety of purposes. Several leadership are principles extensively used these days; however, transformational and servant leadership theories, models, and styles are the ones that are most prevalent in the modern world (Northouse, 2014). Therefore, out of various theories, approaches, and models, this paper discusses two leadership models i.e. transformational leadership and servant leadership. After elucidating the primary aspects and features of these models; this paper critically discusses the background of these model within the broader context of Leadership Theory. It further exemplifies two contemporary business leaders concerning the transformational leadership and servant leadership models while critically evaluating these approaches in order to explain what they contribute to our understanding of the concept of leadership in the context of modern corporate world.
Transformational & Servant Leadership Models
Transformational Leadership
Transformational leadership refers to a leadership model in which the followers trust, respect, remain loyalty and feel admiration towards the executive, and thereby, outperforms than average (Avolio et. al, 2004). Bass (1985) defined transactional leadership as an exchange activity that leaders execute to motivate subordinates in order to achieve their tasks by giving out reward or punishment corresponding with their performance. Bass (1985) also asserted that transformational leadership stresses the valuing subordinates, persuading, and encouraging them to carry out extra efforts and reassure their intellectual capacities over organizational objectives and goals (Howell & Avolio, 2015).
Transformational leadership is a leadership approach in which transforming values and attitudes of the guided ones - from self-centered individual goals toward long - term, collective superior goals - is to be increased (Bass & Avolio, 1994). Transformational leadership begins with the development of a vision that transfers into some potential followers (Yukl, 2015). This vision can be developed by the leader, by the team in place or it can emerge from a wide range of discussions. The transformational leader seizes every opportunity and uses everything that works to convince others to get on the moving train (Dvir et. al, 2002). Transformational leadership is an extension of the concept of transactional leadership in which a leader shows transactional behavior that recognizes the needs and motives of their employees and rewards them that they meet agreed targets, to follow certain rules of conduct and perform as anticipated (Storey, 2013).
Servant Leadership
Servant Leadership is an established approach based on the leadership philosophy of Robert Greenleaf. Servant Leadership describes the action of leaders as a service to the guided, and thus as a serving of leadership in contrast to the governing leadership. Servant Leadership is unique in that it is driven by one’s moral compass (Russell & Gregory, 2002). The servant leadership theory is about managing people and guiding them in the direction of serving by setting one’s own example. The old and traditional leadership includes the implementation and accumulation of power by the person who is present at the top (Spears, 2004).
On the other hand, the servant leadership theory is the one that distributes the power and identifies the requirements of the people. It also helps in the proper and higher development of the people. Servant-leadership goes beyond being a mere style of leadership to being a different way of thinking about the purpose of leadership, the true role of the leader, and the potential of those being led and it also defines guidance in terms of characteristics. Servant leadership promotes and encourages collaboration, trust, listening skills and ethical use of power (Russell & Stone, 2014).
Critical Discussion on Transformational & Servant Leadership Approaches Within Context of Leadership Theory
Transformational leadership theory is a relatively recent approach. It was first introduced by leadership expert James McGregor Burns. Apparently, the transformational theory of leadership was later developed by Bernard M. Bass (Storey, 2013). The theory is an approach to leadership, which was also later advocated by Russell Ackoff and Bruno Avolio too. According to this theory, the leaders using transformational leadership style attract their follower’s trust as well as admiration. The transformational leadership theory focuses on the relationship between the leader and his or her followers (Storey, 2013). It focuses on enhancing the motivation, morale and performance of followers through a variety of mechanisms. In this theory, the leader is a role model for his followers (Yukl, 2015). Thus the leader is obliged to identify strengths and weaknesses in their followers and put them to tasks that can optimize their performance (Howell & Avolio, 2015). This theory assumes that people follow a person who inspires them and gives them a clear and convincing vision. In return, the subordinates act with undeniable devotion and loyalty.
On the contrary, the concept of servant leadership is one that has attracted substantial interest among many leaders over the past few decades. Many scholars attribute the concept of servant leadership to Robert K. Greenleaf, a notable management consultant who, prior to entering that field of work, spent a significant number of years at AT&T working in management development, research, and education. According to Joseph & Winston (2013), “the servant leader is a servant first. It begins with the natural feeling that one wants to serve”. In this sense, leadership begins with a commitment from the potential leader to serve others rather than pursuing his own self-interest, and this essentially is what is central to a leader’s greatness. Greenleaf believed the primary purpose of business organizations should be to create a positive impact on their employees and surrounding community (Joseph & Winston, 2013).
Example of Contemporary Transformational & Servant Business Leaders
In the corporate world, one of the biggest transformational leader after Steve Jobs is Larry Page. Being the founder and former CEO of Google Inc.; Larry Page has adopted several leadership styles and approaches to lead the Google; however, his transformational approach makes employees highly motivated to the extent that they may even work harder than usual. Larry Page at Google is considered as one the best example of an effective transformational leadership. His leadership style does not only pertain at a surface organizational level, but he makes his every leader absorb the similar essence (Henker et.al, 2014).
Larry Page thrives in his transformational leadership style because he allows his employees and associates to feel valuable. Page’s leadership philosophy is that “The sense of value creates job satisfaction and loyalty to the organization” (Investing. BusinessWeek, 2014). Larry Pages’ transformational leadership style and philosophy are all about making his employees inspiring, encouraging, being imaginative, distinctiveness, creative, competent and intelligence. Larry Page exemplifies the transformational leadership style as he always influenced effective organizational change by providing a personal reference in which he gives individual attention, empathetic and supportive attitude, open communication, poses personal challenges, guide, advisor, and mentor. As a response, the Googlers react to this ambition discovery and a desire for personal development through making tasks that allow them to learn new things and have intrinsic motivation (Howell & Avolio, 2015).
While talking about the servant leaders in the corporate world, the 56 years old CEO of Popeyes Fried Chicken - Cheryl Bachelder is a perfect modern example (Forbes, 2013). Cheryl Bachelder exemplifies the servant leadership precisely as her leadership approach involves an uncompromising orientation to the interests of her people. In an interview, she asserted that ‘I love people and wants to help them’, and similar is the mission of the servant leader is to identify the needs of others and try to meet these needs (Gregory, Russell & Patterson, 2004). She also reflects that she prefers placing service before the personal and monetary interests, listening first in order to exhibit confidence in people, inspiring trust by becoming trustworthy, focusing on what can be considered as feasible for accomplishment, providing assistance, and providing tools (Goudreau, 2014). According to Heifetz (2013), there are ten chief attributes of the servant leadership. They include healing, conceptualization, commitment to people’s growth, listening, and community building, empathy, persuasion, foresight, awareness and stewardship; and the leadership approach of Cheryl Bachelder reflects each of these attributes.
Contribution of Transformational & Servant Leadership Approaches In understanding the Concept of Leadership in Contemporary Business
Leadership is essential for managers, especially with the globalization and decentralization of the decision-making power of executives in medium and large companies. This globalization mechanism ensures that the ability to run a business without having the power to rally and bring people together and direct them to a direction would be almost impossible. Steve Jobs is a very good example of a leader in his field and he is able to delegate this leadership to others; “When you hire a lot of people, you have to give them a piece of the leadership”. The effectiveness of the method used by the leader in a particular situation may vary depending on the circumstances (Kark, Shamir & Chen, 2003). Leadership has this in common with beauty that is easily recognizable, but difficult to define. Some define leadership as the function of guiding and influencing others and achieving ambitious goals. For others, the leader is a coach who trains individuals to be helped by them in the performance of his duties. In order to fulfill its role, the manager must be able to bring the individuals under his authority to achieve their goals by using his power and influence (Bass & Riggio, 2006).
In the contemporary business, transformational leadership seeks to raise the level of motivation and morality in organizations by making greater use of long-term intrinsic needs and less on extrinsic short-term demand. The theory of transformational leadership differs from transactional leadership. The latter focuses on the role and requirements of the task and uses contingent performance rewards. On the other hand, transformational leadership emphasizes the charisma and the development of mutual trust, fostering the leadership abilities of other individuals, and setting goals beyond the short-term needs of the working group (Yukl, 1999).
Transformational leadership is all about motivating the followers/employees in an intrinsic manner, for example, by communicating attractive visions, communicating the common path to goal-setting, acting as a model and supporting the individual development of the employees. This is his routine activity, mixing his energy with the most convinced and the least. The transformational leader creates trust, preserving his or her personal integrity in order to convince more ‘disciples’ (Bass & Riggio, 2006). Transformational leadership offers its followers something more than just a job for their own benefit; they provide inspiration to the followers of the tasks and the vision of how to perform these tasks. Transformational leadership theory aims at motivating followers through leaders’ idealized influence (charisma), intellectual stimulation, and individual attention.
In addition, the leader encourages followers to come up with new ways to challenge the status quo and achieve greater success (Bass & Riggio, 2010). In organizations, transformational leaders ensure that dealing with each other based on fair rules and principles. The interpersonal relationships are based on constructive values, such as transparency, openness, sincerity, clarity, and respect (Eagly, Johannesen & Van, 2003). They conduct meetings in an efficient, results-oriented manner and convince by sound arguments which result in time savings by reducing unnecessary, fruitless meetings and political behavior (Bass & Riggio, 2010). In organizations Transformational Leadership is also related to effective organizational change as the transformational leadership, can be operationalized by other behavioral descriptions for instance it clarify the expectations of the employees and recognition with correct execution of the tasks, implementation of corrective actions to ensure the achievement of objectives, support their efforts and clear delineation of responsibilities and accountability (Henker, 2014).
In contemporary business, the major feature of servant leadership that contributes the most is that the leaders are servants of the people with whom the influential relationship is established in serving the needs and wants of the people, they specialize. They also focus on fulfilling the needs of the organization and the workers that are the part of the organization. Servant leaders harbor a desire to lead people who manifest their best. Servant leaders perform a role in adapting environments to meet the requirements of the organization. The effective roles of servant leadership create relationships of a strong kind between different workers within an organization. A leader provides service irrespective of his self. The leader having these skills of leadership express more care for the organization than anyone else can express. They are not so concerned about making their own status and reputation high (Heifetz, 2013).
The servant leader develops an environment of trust and bonding. He boosts up the motivational level of the members of the organization, which results in increased commitment. Servant leadership has some other characteristics. These include stewardship, conceptualization, persuasion, foresight, awareness, building community and people’s growth. The most important characteristic contribution of servant leadership is that the leader remains committed to the human development. A servant leader often has to leave the practice of this characteristic when the organization faces immense pressure from the market and ultimately indulge in downsizing and hiring freeze (Joseph & Winston, 2013).
The above discussion concludes that today’s leaders need to be capable of rising above their specific expertise. Companies that do not have a well-defined view of what is required of a future leader, will also have difficulty bridging the leadership gap. When developing an organization-wide leadership perspective, companies, especially hospitality organizations must take into consideration the impact of internal and external forces on the business that can cause leadership requirements to shift. Then they must agree on the corresponding skills that will be needed by future leaders. Servant leaders are self-motivated and emit positive vibes from their personalities. They are a source of energy and motivation for their followers who look up to them for a renewed direction and motivation (Day, 2014).
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