« Exploring Global Perspectives of the Impact of Transformational Leadership on the Corporate Business Sector » Theodo

1. Northern Caribbean University, Mandeville, Manchester; Jamaica College of Business and Hospitality ManagementCurrent Trends & Issues ConferenceMarch 9-10, 2014 « Exploring Global Perspectives of the Impact of Transformational Leadership on the Corporate Business Sector » Theodore Brown Sr., PhD Associate Professor of Management Oakwood University Huntsville, Alabama USA

2. INTRODUCTION • The topic of leadership has emerged into one of the most discussed and debated subjects of the modern era. • Ralph Stogdill (1974) in his review of the leadership literature stated that « there are almost as many different definitions of leadership as there are persons who have attempted to define the concept » (p. 259). • Tracy and Chee (2013) identify leadership as the ability to get followers, and elicit extraordinary performance for ordinary people to achieve a goal.

3. LITERATURE • The term transformational leadership was first coined by Downton (1973). • Burns (1978) is credited for initiating a movement defining leadership as a transformational process, stating that leadership occcurs « when one of more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality » (p. 83). • Beginning in the late 1970’s the transformational leadership approach emerged as a new perspective for understanding and explaining leadership (Burns, 1978 and Northouse, 2013).

4. The 4Is of Transformational Leadership • Idealized Influence (leader talks about values, beliefs, purposes, a collective mission, benefits of trust) • Inpirational Motivation(leader’s behavior involves developing and articulating a vision) • Intellectual Stimulation (leaders value followers’ rationality and intellect; creative problem solving and innovation) • Individualized Consideration (leader’s ulitmate aim is to develop followers into leaders themselves; spending time listening, coaching, and teaching for followers’ development) (Northouse, 2013; Rickards, 2012; Sosikand Jung, 2010; Bass, 1985)

5. Characteristics of Transformational Leaders • Creative (transformational leaders are innovative and foresighted) • Interactive (transformational leaders are masterful communicators able to articulateand define ideas and concepts that escape others) • Visionary (transformational leaders communicate a compelling visionthat providespeople with a sense of purpose and encourage committment) • Empowering (transformational leaders empower others and encourage participation and involvement) • Passionate (transformational leaders are passionately committted to their workand motivate others to perform at their highest level) Hackman and Johnson (2013)

6. Transformational Leadership: Corporate Sector According to Rooke and Torbert (2011) every company needs transformational leaders – those who spearheadchange that elevate profitability, expand market share, and change the rules of the game in their industry. But few executives understand the unique strengths needed to become such a leader.

7. Transformational Leadership: Corporate Sector Global Leaders were identified as individuals who effected positive significant change in their communities and organizations through the development of trust and the implementation of structures and processes in a contextual environment inclusive of multiple cross-boundary stakeholdes, multiple cultures conditions incorporating cultural, geographical and temporal or spatial complexity. (Mendenhall, Osland, Bird, Oddou, Maznevski, Stevens, and Stahl, 2013)

8. Transformational Leadership Impact: Corporate Climate Moynihan, Pandey and Wright (2012) stated that leadership affects the organization’s goal clarity directly and indirectly as well as the organizational culture. The importance and impact of a transformational leader is more pronounced in uncertain global business environment where corporations are experiencing constant change and competitive challenges (Williamson, 2013)

9. Transformational Leadership Impact: Human Capacity Bradt (2010) proposes that transformational leadership transforms new employees, while Shih, Chiang and Chen (2012) suggest that transformational leaders tend to nurture a climate of trust in the organization while promoting employee knowledge-exchange behaviors among workers.

10. Transformational Leadership Impact: Corporate Productivity In China, researchers found in study of 108 teams that transformational leadership affects team coordination and performance though the conflict management strategic approaches that were adopted by team members(Zhang, Cao and Tjosvoid, 2011). In Great Britian, researches analyzing 43 shifts teams from a UK chemical processing plant found the relatonship between transformational leadership and team proactive performance was very positive and productive for the company, and also resulted in high team performance (Williams, Parker and Turner, 2010)

11. Transformational Leadership Impact: Corporate Productivity In The Nethelands, researches analyzing data collected from employees working for a large Dutch employee agency found that transformational leadeship impact work outcomes, and facilitates a climate for positive change in organizations(de Poel, Stoker and van der Zee, 2012). In Ethiopia, research conducted examining the effects of transformational leadership on subordinate job satisfaction in leather companies found that the practice of transformational leadership increases job satisfaction (Shibru and Darchan, 2011).

12. Transformational Leadership Impact: Corporate Productivity In the United States of America, a study of public service organizations revealed that transformational leadership is a critical factor asociated with higher public motivation (Wright, Moynihan and Pandey, 2012). Another study in the USA examining nontraditonal accounting services discovered that transfornational leadership was directly and positively associated with employee role clarity, job satisfaction, and affective organizational commitment and indirectly associated with job performance (Viator, 2001).

13. CONCLUSION Transformational leadership isvery viable to the success of the of corporations and organizationsthroughout the global business community. Leaders who are transformationalcreate vision, creativity, and dramatically impact the performance climate and culture of employees in theirorganizations.