Let Go to Grow—Part I
This short review explores two leadership styles Oxano Group frequently encounters: transformational and authoritative. We'll define their characteristics, impacts on organizations, and implications for leaders and teams. Part II delves into the process of moving from an authoritative leadership style, sometimes necessary at the formation of an organization, into a transformational leader; a strategy in line with the needs of a scaling operation and growth (with notable exceptions).
Transformational Leadership
James MacGregor Burns introduced transformational leadership in 1978, and it has become a cornerstone in the study of effective leadership. Transformational leadership is characterized by those who inspire and motivate their followers to exceed their own self-interests for the organization's good and to achieve higher performance levels. Transformational leaders exhibit visionary and charismatic communication and aim to create an environment where the team is encouraged to innovate and grow.
Transformational leadership can have profound positive impacts on growing organizations as it enhances employee engagement and satisfaction, leading to higher levels of productivity and performance. Transformational leaders also drive change and adaptation in dynamic environments by fostering a culture of innovation and continuous improvement. These leaders build strong, cohesive teams that are committed to the organization's mission and goals.
It aligns individual and organizational values and promotes a shared sense of purpose. Employees under transformational leaders are more likely to exhibit organizational citizenship behaviors, going above and beyond their formal job responsibilities.
Authoritative leadership, also referred to as transactional, is characterized by a focus on maintaining control and adherence to established or desired procedures and hierarchies. The method necessitates the use of power and position to achieve compliance and ensure tasks are completed as directed.
The impacts of authoritative leadership on organizations can be mixed. On one hand, this leadership style can be effective in situations where clear direction and control are necessary, such as in crisis situations or in highly regulated industries. It ensures that tasks are completed efficiently and that direction is followed strictly. However, a balance between the two styles can be beneficial even in such contexts. Leaders can adopt a transformational approach to build a strong, motivated workforce while using authoritative techniques when immediate compliance and control are essential.
Outside of crisis and regulation adherence, authoritative leadership can have drawbacks, especially within established organizations and through the dynamic nature of growth. The style can lead to low employee morale and job satisfaction, as team members may feel undervalued and disempowered. It can also stifle creativity and innovation, limiting an organization's ability to adapt to changing environments. High levels of control and rigidity can also result in increased turnover, as employees seek more supportive and empowering work environments.
Ultimately, the most effective leaders can adapt their leadership style to a situation's needs and their team, balancing the inspirational and visionary aspects of transformational leadership with the directive elements of authoritative leadership.
In an ever-evolving organizational landscape, a leader's ability to inspire, motivate, and adapt is crucial. By understanding the differences between transformational and authoritative leadership, leaders can make informed decisions how to lead their teams and achieve organizational growth goals.
Authored by—Keith Verner, Founding Partner
Suggested reading for this article
Insight: The Surprising Truth About How Others See Us, How We See Ourselves, and Why the Answers Matter More Than We Think
by Tasha Eurich | released June 5, 2018
Find it on Amazon (We receive no compensation for our suggested readings. The link is provided as a convenience.)