Introduction
With Almadina is an investment house established in 1998, with a capital of 10 million Omani Rials and five employees’ in a 50 square meter office. the company was established to serve as a local stockbroker. Today, after more than 14 years, the company has diversified into, real-estate development, insurance, logistics, and franchising, private equity placement and recently into sharia compliant products. The name of almadina is now well known in many industries across the nation, it has been quite successful in most of the ventures and establishments across the board. Using the s-7 framework, we will evaluate seven elements in almadina, structure, Strategy, systems, style, Staff, Skills and subordinate goals:
Structure
The company has seven departments, Corporate Finance, Legal department, Marketing, IT, Human Resources and Accounts. All these departments report to the Chief Operating Officer who directly reports to the Chief Executive Officer. Almadina has flat structured, that allows ease and direct communication in the hierarchy of command. This decentralized structure helps the company to shift resources, act flexibly and manage strategy
Strategy
According to , a strategy is what defines how you do business, some companies use strategies like selling a very cheap product and some set theirs to sell the most expensive product. Ferrari’s strategy for example is to sell the best sport cars to selected benchmark, while Toyota’s strategy is to sell as many family cars to as many families. And there companies should say, “Here is how we create unique value”. In almadina, the strategy is known as providing a personalized high standard service to high net worth and companies. With that strategy almadina was successful to brand itself as a high quality service provider in the local market.
Systems
One of the systems almadina adopted is scanning the market and seeing what industry need’s what products, and then they do a deeper market analysis and feasibility studies to see the profitability of these projects, latter the products with good potential is shared with strategic partners and translated to real business.
Staff
Once again the number of employees pays a significant roll in this section. They style of how the staff are groomed and prepared is not standardized, and it is common in almadina to have some of the manager being groomed by top managers, courses or sometimes even other manager. But what is common in the staffing stage in almadina is headhunting, the companies belives that we need to get the right staff for the right position, later, we support him in the needed way to let him grow.
Skills
What meant by skills are what the companies are known for, may it be quality of service, or maybe market orientation, or customer service or even product management capabilities. Almadian’s main skill we will be finding the right investment opportunities to create sound investments. Almadina has a very succeful track record in setting up companies in different industries and all our strategic partners know by now, that we are quite successful in knowing when to invest and how.
Subordinate goals
Subordinate goals are like a set of unwritten norms that run through the veins of any organization, it is known things about the company that all strive to achieve somehow in his own department. For example, 3M’s stands for “new product” or coming up with something form out of the box, being creative and innovative. That is their norm and motto as an organization. Although there isn’t anything communicated properly about this in almadina, yet, it is a well established norm for most of the staff that we have a very high level of moral when dealing with clients, it is known that in case of any dispute between our company and any of its clients, we almost always are willing to make sure that we reflect a high level of integrity and willingly pay/give up our commotion to make sure that we make our client happy.
Leadership style in almadina
“The transactional and transformational rubric can be applied to teams as a whole and to organizations as a whole. Members of transformational teams care about each other, intellectually stimulate each other, inspire each other, and identify with the team’s goals. Transformational teams are high performing.
Organizational policies and practices can promote employee empowerment, creative flexibility”
Every person has a style, way of thinking and a personality, like so; every family has a style, way of life and a personality. And when you look at departments in organizations they have their own personality, culture and work style these departments they shape the organizational culture. Leadership style is also one of the characteristics that must be shaped in any organization, the experiences, skills and background of the employees in that entity set that culture and leadership style of that particular entity.
When reflecting the leadership style of almadina to the literature, it is obvious that transformational leadership is the dominant style in almadina, and in his book (Lynch 2012), answers the question of what is transformational leadership, he talks about few treats that make this style standout. We will demonstrate the treats of transformation leadership and benchmark them to almadina’s working style and make sure that it is in line with almadina’s leadership style and culture. Lynch 2012 when answering what it transformational leadership he says there are four main headings that define transformational leadership style, idealized influence, inspirational motivation, intellectual stimulation and individualized consideration.
Idealized/charismatic influence
This is one of the treats of transformational leadership is its ability to inspire others in a positive manner to allow him/her to be a role model. Reflecting that on the culture of almadina, the culture of almadina is known to treat all the staff in a positive and a loving way, the company is always willing to take a step forward and give more to the employees. One of the things that drive the inspiration is that our board members and executive managers are very hard working and dedicated, and that has a direct reflection on our inspiration and willingness to make an extra effort. When it comes to manners and etiquette, the culture of the entire organization is based on complete respect, where no matter how much we disagree on a matter; we are obliged to stay within that culture of respect. Transparency is considered to be very high in almadina and thinks are done out in the open and everyone can ask any question to anyone. The company is seen to be a loving company that takes good care of its staff, the environment make the staff so close and caring for others and they turn to a family member, making all the employees in that company contributing just a little bit to that charismatic influence.
We have moved from employees to respected contributors to very transparent and clear goals.
Inspirational motivation
Followers should be inspired to support not forced to support. Almadina’s leadership culture starting from board members to executive managers to middle managers are adopting that concept in their management style. Very seldom we as employees of almadina do something that we don’t want to, we all are willingly doing our jobs and working on weekends to fulfill our part, to elevate this family to the next level. The key to this motivation is accomplishable yet challenging tasks, our tasks are always built but the mangers with the help of the staff, the time and limitations are usually discusses amongst the team and set accordingly, making the staff involved in choosing the level of work, as well as the timing, is a key to inspirational motivation.
Intellectual stimulation
Transformational leadership encourages employees to think critically and to come up with creative ideas to overcome challenges. Our office in almadina was designed around creativity, the layout, colors and décor was selected to stimulate creativity and innovation. It is a vital part of the almadina’s culture to welcome other opinions and inputs, the environment also allows staff to think out loud and express their ideas freely. We have work sessions that take place in a five star hotel or in a coffee shop where the setup is casual and friendly and employees feel free to just
Individualized consideration
One of the treats of a transformational leadership is individualized consideration, (Lynch 2010), says in his book, this trait is about personalizing the treatment to the followers and not treating them in s group setting. He also argues that this is much easier in smaller companies with limited followers. Looking at the strength and weaknesses of each employee as well as knowing where is the room for improvement and how can that individual be taken to the next level and having a strong two way communication with the leader are the key to a successful initialized consideration trait. Reflecting this on almadina’s environment treats all the staff with a very personalized matter, open communication, dedicated carrier plans to each staff, almadina take it further to a very personal level, where we have employees sent for treatment, rewarded for personal celebrations like birthdays, wedding days and even family celebrations. Yet, almadina have failed in knowing and evaluating each staff improvements and progress, which is one of the keys of transformational leadership treats.
The theory and its history
First coined by J.V. Downton in his book Rebel Leadership: Commitment and Charisma in a Revolutionary Process in 1973, the term transformational leadership was first introduced as a concept by James MacGreogor Burns in his book Leadership in 1978 (Anon., The Transformational Leadership Report, n.d.) for his study on political leadership. Today, the term is also used in organizational psychology.
According to Burns, transformational leadership is “an ongoing process by which leaders and followers raise one another to higher levels of morality and motivation” (Burns, 1978 as cited in Anon., The Transformational Leadership Report, n.d., p. 4). He asserted that transformational leaders provided a purpose that went beyond short-term goals and focused on the higher order needs (Anon., The Transformational Leadership Report, n.d.). With the transformational style of leadership, leaders raise the standards by appealing to the values and higher ideals of their followers where the leaders themselves model the values and use charismatic methods in attracting people to the leader and to the values advocated by the leader.
In formulating this theory, Maslow’s hierarchy of needs theory served as Burns’ inspiration. In particular, Maslow’s theory indicated that people have different types of needs and that their job performance would be determined by how well these needs were met. According to Maslow’s hierarchy of needs theory (Kroth, 2007), the needs of humans can be classified as physiological needs; the need for safety and security; the need for belongingness; the need for esteem; and the need for self-actualization.
In particular, transformational leadership can be classified into the higher order needs, as this type of leadership requires a high level of self-actualization and self-esteem in order to be successfully and authentically carried out. According to Burns, a transformational leader’s task is to raise consciousness on a broad scale where the leader’s primary action is to make people conscious or aware of what they feel, that is, “to feel their true needs so strongly, to define their values so meaningfully, that they can be moved to purposeful action” (Burns, 1978 as cited in Anon., The Transformational Leadership Report, n.d., p. 4). With the transformational leadership style, a leader is not only able to create change and achieve goals but is also able to help the people change for the better. In the same regard, Bernard Bass, a follower of Burns, asserts that a transformational leader affects his or her followers through increasing their followers’ awareness of the tasks’ value and importance; through encouraging their followers to prioritize their organizational or team goals over their own interests; and through bringing out their followers’ higher-order needs (Anon., The Transformational Leadership Report, n.d.).
On the other hand, Homrig (2001) proposes that transformational leaders have high ethical and moral values and have an inspirational vision, which their followers share. They are also motivated to do the right thing. In addition, they show genuine concern for their followers and are able to establish trust between themselves and their followers. Moreover, the transformational leadership style entails both the leaders and the followers performing beyond self-interest. As well, transformational leaders employ a participatory form of the decision-making process. They are able to think innovatively and take action. They also act as mentors for their followers.
According to Schlosberg (2006), transformational leadership is the form of leadership that “sets excellent teams and organizations apart from average ones” (Schlosberg, 2006, p. 7). In this form of leadership, team achievement, a collective vision, and shared meaning are considered important because, together with individual motivation, these factors drive achievement, increase job satisfaction, and build resonance. He asserts that organizational transformation pertains to the change from an organization that does not have a clear purpose to an organization that has a compelling and organized mission that is unified and empowered (Schlosberg, 2006).
(Berdent, christofi, Kasibhatla, Malindretos & Maruffi 2012) (cool2) In their paper written about Moses and his transformational leadership style, they say, transformational leadership is based on personal values, beliefs, and qualities that help the leader elevate the interests, awareness and acceptance and make the followers see beyond their own interest. The qualities they claim to be in a transformational leader are little different then what (lynch 2012) says. They believe that humility, tenancy, persistence, integrity, creativity and mental and physical health are some of the qualities of a transformational leader. In 2011 (Hoffman, Bynum, Piccolo and Sutton 2011) wrote a paper trying to scale and quantify the effect and influence of transformational leadership to group effectiveness, the actually wanted to see how much value does having a transactional leader add to a group? The finding of the study argues that frequently the effect of transformational leadership depends if the leader’s vision is consistent with the company vision. And followers must see that. If we try to look at that from a department leadership style, transformational leadership will work best if the followers of a department, see that (their) department is adding value to the big vision of the organization.
How It works
A transformational leader first begins by becoming aware of their own thoughts and feelings and how these affect their actions and the states of other people (Anon., The Transformational Leadership Report, n.d.). As the leader’s awareness increases, they begin to identify their inner motivations, what drives them, what their values and passions are, and how these affect their actions, thoughts, and feelings, as well as those of others.
As the transformational leader’s awareness increases, so does their perception, which enables them to choose the actions that directly meet the needs of the people and the situation around them. Moreover, the transformational leadership styles inspire the whole being, which means that the leader’s actions, feelings, and thoughts remain consistent (Anon., The Transformational Leadership Report, n.d.). It is a type of leadership that entails an authenticity and integrity, which others are able to relate to and which inspires them to follow and become leaders as well. With this type of leadership, competition is eliminated and in its place, cooperation and connection is advocated. It focuses on the creation of lasting relationships and on the creation of outcomes that are socially responsible. It shifts focus from the bottom line to a sustainable vision that concerns not only the welfare of the organization but also that of everyone involved.
In order to achieve superior results from the implementation of the transformational leadership style, one or more of its core components must be employed (Bass and Riggio, 2012). In particular, these core components are idealized influence; inspirational motivation; intellectual stimulation; and individualized consideration (Bass and Riggio, 2012).
The idealized influence component pertains to transformational leaders serving as role models for their followers where they are trusted, respected, and admired by their followers. Followers want to emulate their leaders with whom they identify. In addition, followers perceive their leaders as determined and persistent. Idealized influence consists of two aspects, namely the leader’s behaviors and the elements that the followers and associates attribute to the leader. On the other hand inspirational motivation pertains to the transformational leader’s ability to motivate and inspire the people around them by providing challenge and meaning to their follower’s contributions. This component fosters team spirit, optimism, and enthusiasm. It also enables leaders to make their followers participate in envisioning their betterment in the future. Transformational leaders are able to clearly communicate expectations to their followers, which the followers are eager to met and commit to.
Intellectual stimulation pertains to the transformational leaders’ efforts to be creative and innovative through the use of new ways in approaching old situations, through the reframing of problems, and through the questioning of assumptions. The followers are encouraged to be creative and they are not criticized for having different ideas from the leader. Finally, individualized consideration refers to the leaders’ mentoring of their followers so that their followers may be able to fulfill their needs for growth and achievement and where these followers are developed to even higher levels of potential. This component involves the consideration of individual differences in terms of desires and needs. The leader accepts the followers’ individual differences and has individualized conversations with his or her followers. The leader also listens effectively and delegates tasks. Likewise, the leaders monitor these tasks to determine if their followers need support and to evaluate progress.
According to Hall, Johnson, Wysocki and Kepner (2008). there are no specific steps for becoming a transformational leader due to the many aspects involved in this style of leadership. They assert that becoming an effective transformational leader is a process where the leader must make a conscious effort to develop this style of leadership. On the other hand, Hacker and Roberts (2003) suggest that transformational leadership requires both leadership and managerial skills and not one over the other. It also requires knowing when to use a specific skill in a particular situation. Moynihan et al. (2011) asserted that leadership involved a high-level focus on strategy and inspiring while management focused more on the technical systems and processes.
Studies also showed that women were more likely to exhibit transformational leadership qualities than men and that extraversion was the best predictor of this style of leadership (Judge, Woolf, Hurst and Livingston, 2006). In addition, other personality traits that have shown to have a positive influence on transformational leadership include egotism, altruism, traditional values, Machiavellianism, and narcissism (Judge et al., 2006). Studies further show that leaders who have a cynical view of organizational change are unlikely to be considered transformational (Judge et al., 2006).
Strengths and weaknesses
According to Northouse (2001), one strength of the transformational leadership theory is that it has been extensively researched using famous leaders. Another strength is that it is effective at influencing associates on all levels, whether the organization as a whole or on a one-on-one basis. Moreover, this style gives a strong emphasis on the values and needs of others. Moreover, it has an intuitive appeal as the transformational leadership theory views leaders as change agents who are capable of providing visions of the future (Lang, 2011). In addition, transformational leadership is process-focused n that it presents leadership as a mental process between leaders and followers where the followers’ needs are used as the inputs for the transformation process. As well, transformational leadership provides an extended leadership view as it not only focuses on the extrinsic motivations of the followers but also considers their growth and demand. Likewise, transformational leadership can be considered follower-focused in that it highlights the followers’ needs, morals, and values.
In a study conducted by Huse (2003) with regards to the application of the transformational leadership style in the U.S. army, he suggested that transformational leadership was very much implemented the U.S. army but that that it could further be developed by making it the main leadership style used in the army. He asserted that the correct understanding and effective application of the components of transformational leadership could lead to the development of leaders who are not only capable of embracing change but who are also capable of ensuring that the organization’s direction is aligned with its published vision (Huse, 2003). He went further to state that transformational leaders were effective, based on the analysis of the leadership styles of General Depuy and General Marshall. Both of these leaders possessed the traits of a transformational leader and both of them were able to successfully implement change (Huse, 2003).
Similarly, a study by Wright, Moynihan and Pandey (2012), where they investigated the effects of transformational relationship on the motivation for public service and on mission valence, showed that transformational leadership can increase public service motivation, which in turn fosters mission valence. As well, they found that transformational leadership has indirect effects on the clarification of organizational goals (Wright et al., 2012). Similar findings were obtained by Moynihan, Pandey and Wright (2011) when their study’s results indicated that there was a positive relationship between purposeful performance information use and transformational leadership, particularly through the mediating factors of organizational culture and goal clarity. This implied that transformational leadership was relevant in reform efforts (Moynihan et al. 2011). The researchers further pointed out that while there’s a distinction between management and leadership, transformational leadership is still capable of working through the formal management processes (Moynihan et al., 2011). They further suggested that transformational leaders were capable of exerting influence through performance systems while at same time managing and creating a culture that will allow such processes to succeed (Moynihan et al., 2011) However, unlike managers, transformational leaders are not just technicians; rather, they should be able to stimulate, inspire, and serve as role models. In the same regard, Schlosberg (2006) asserts that transformational leadership can facilitate high-powered and efficient teams in an organization; enlighten interpersonal communications, and create an enhanced interpersonal synergy.
As well, Yammarino (n.d.) asserts that transformational leadership can be exercised indirectly, which means that leaders at all organizational levels can influence the effectiveness and development of individual followers whether these followers are their direct reports or not. Yammarino suggests that “indirect leadership can be displayed upward by followers to higher-level leaders and horizontally across co-workers and units” (Yammarino, n.d., p. 26). Even with the indirect exercise of transformational leadership, this type of leadership can still lead to the development of followers, to the development of new leaders, and to job performance exceeding expectations at different organizational levels by the focal leader regardless of their position. Similarly, Moynihan et al. (2011) suggest that focusing only on the direct affects of leadership underestimates the leadership’s potential influence. In the context of public service, Moynihan et al. (2011) suggest that transformational leaders who advocate for organizational change should support reforms not only through direct involvement and a showing of strong commitment but also through setting the conditions that would enable the reforms to succeed.
On the other hand, one of the weaknesses of transformational leadership is that its components seem too broad. Because it includes various attributes, it can be difficult to clearly define its boundaries (Nemiro, Beyerlein, Bradley and Beyerlein, 2008). Similarly, many of the definitions of transformational leadership are also included in the definitions of other leadership theories. Another weakness is its interpretation as an all-or nothing approach instead of something that can be implemented to certain degrees. There is also a tendency for transformational leadership to be viewed as something that very few leaders can cultivate instead of considering the transformational attributes as a continuum where various leadership components are incorporated. It also views leadership as a personality rather than a behavior that can be learned.
In addition, transformational leadership can potentially be used to abuse power. Since transformational leadership does not have the checks and balances that exist in transactional leadership, there’s a tendency for leadership to get involved in unchecked abuses of power. Moreover, there’s the danger of pseudo-transformational leadership emerging. While genuine transformational leaders will help their followers become leaders, false transformational leaders will try to ensure that their followers remain dependent on them. They set and control their agenda such that they are able to manipulate the values that are important for their followers and they often do so at the expense of others. They create false visions, imaginary enemies, and fictitious obstacles. They also advocate for values such as submission, racial superiority, victimization, and favoritism.
Furthermore, transformational leadership is found to be morally at fault when leaders motivate their followers to prioritize the group or organization’s good over their self-interest. It is also seen as immoral when it reaches the point when followers are asked to sacrifice their own life plans for the organization’s sake. As well, followers can be unknowingly manipulated into adopting the leader’s values.
In addition, transformational leadership tends to be viewed as anti-democratic or elitist. Since transformational leaders are viewed as key players in the advocacy towards change and are responsible for advocating new directions and creating a vision, their actions can be interpreted as putting themselves before the needs of their followers or acting independently from their followers.
There are also some problems or questions with regards to the validity of the measurement instruments used in relation to transformational leadership. For example, the MLQ (Multifactor Leadership Questionnaire) that was developed by Bass and Avolio comes in different versions, two of which are the MLQ-Form 10 and the MLQ-Form 5R where the former examines only leadership behaviors whereas the latter examines both the leadership behaviors and effects (Judge et al., 2006). In addition, there are questions with regards to the distinctiveness of the MLQ dimensions where some researchers claim that they are distinct while others doubt the instrument’s validity as some of the dimensions are partially overlapping due to their high intercorrelation. Moreover, some researchers claim that there is an unclear distinction between the transactional and transformational leadership dimensions (Judge et al., 2006).
Finally, in a study conducted by Spreitzer, Perttula and Xin (2005) where they investigated the relationship between the effectiveness of transformational leadership and cultural values, it was found that transformational leadership was effective regardless of culture but that the level of its effectiveness varied with culture. In particular, they found that individuals with more traditional cultural values saw a weaker relationship between leadership effectiveness and transformational leadership compared to the individuals with less traditional values (Spreitzer, Perttula and Xin, 2005). On the contrary, a study conducted by MuenJohn and Armstrong (2007) showed that culture seemed to play a minimal role in transformational leadership, which implied the universality in the application of this form of leadership.
Evaluating my leadership style
In order for me to better understand my leadership style and how I can add value to the leadership process in almadina, I have undergone a methodology in transformation leadership questioner (appendix 1), this questioner measures two sides of a persons leadership style:
- My relation to Task dimension referred to as (T), this part shows how focused I am on accomplishing tasks and handling my attitude towards tasks in hand.
- The second part represents my relation to the people dimension referred to as (P) , this shows my care and concern for the people around me, it also shoes how I treat these people.
These two ingredients are put together in a chart to explain where I stand as a leader and then it demonstrates the ratio of attention given to task and people in my leadership style.
In 1992, Bass and Avolio have introduced a well-known Multifactor leadership Questioner. This questioner is designed to analyses multifactor in the leaders style, it focuses and evaluates seven traits, idealized influence, inspirational motivation, intellectual stimulation, individualized consideration, and contingent-by-expectation and laissez-faire leadership. This seven point questioner provides a holistic view of what type of leader one can be, this questioner is a self filled and does not depend on a peer or someone from the outside. The questioners has 21 descriptive statements and the requirement is to give an answer form zero to four, zero is not at all, 1= once in a while, 2= sometimes, 3= fairly often and 4= frequently, if not always. The result for each of the seven factors is a sum up of three answers and the score range is high 9-12, moderate 5-8 and low 0-4.
MLQ Findings
The findings of my MLQ were as following:
Factor 1: idealized influence:
This factor is how his followers see the leader, it is about how they can rely and trust the leader. It also boils down to the fact if they see him as a role model for them. I have scored high on this one, the reason is I am willing to do my work and theirs if needed, I am willing to devote my own time to give 110%, and that is why, my staff are looking up to me and are willing to follow me.
Factor 2: inspirational motivation:
Inspirational motivation measures the level of vision reflection, it also shows if the symbols and signs used by leaders help others know the other focus on their work by knowing what the vision is and if the leader is successful in making his followers feel that their work is significant. I have scored high in inspirational motivation, because I always involve my team in my vision, I also successfully acknowledge what they do and make them feel like they are part of this vision.
Factor 3: intellectual stimulation:
Intellectual stimulation measures the level where I am encouraged and motivate employees to look at old problems for new prospective or views. This is about encouraging people to being innovative and creative about old problems. I have scored moderate in intellectual stimulation, because when I see things running smooth in my department, I don’t usually ask my employees to rethink of other solutions, I just say, “this is working the way it is” and I go on.
Factor 4: individualized consideration:
Individualized consideration, is an indicator of how much I care for others well being paying attention to each individual as needed. I have scored high on individualized consideration, because I always take good care of my team, make sure they are all on board and provide personal and professional help to those who need it when needed.
Factor 5: contingent reward:
Contingent reward reflects on how a leader is successful in informing the team on what it is needed from them to be rewarded. It is very important to tell the team, what do they need to do, to be acknowledged and rewarded. A part of this factor is also making sure that your team gets the reward, may it be financial or in a form of recognition. I have scored high here, I have always been pointing out and giving credit to the team members who have contributed to a success of any of the projects or even tasks and I always make sure that they are rewarded accordingly.
Factor 6: management-by-expectation:
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Appendix
