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The General Review of How Different Leadership Styles Cause the Transformational

Change Efforts to Be Successful

Teoh Kae Nging1

Center for Southern New Hampshire University (SNHU) Programs, HELP College of Art and Technology, Kuala Lumpur, Malaysia

Rashad Yazdanifard Center for Southern New Hampshire University (SNHU) Programs, HELP

College of Art and Technology, Kuala Lumpur, Malaysia

Abstract

Organizational change refers to the transformation of an organization from its current state to its desired future state. Organizational change helps to maintain a competitive position as well as the companies’ sustainability in a competitive market. There are different kinds of leadership styles that have strong relationships with the growth of change. This research reviews the different leadership styles, including commanding, supportive, inspirational, logical, transformational, transactional and servant. Different leadership styles take up different kinds of roles and use different actions when implementing organizational change. In conclusion, this research concludes that different changing processes require different leadership styles.

Keywords: Leadership, Culture, Motivating, Organizational change.

Cite this article: Nging, T. K., & Yazdanifard, R. (2015). The General Review of How Different Leadership Styles Cause the Transformational Change Efforts to Be Successful. International Journal of Management, Accounting and Economics, 2(9), 1130-1140.

Introduction

Organizational change arises when an organization transforms from its current state to the desired future state (Gilley, 2005). “Change is a normal part of business” (Graetz, Rimmer, Smith & Lawrence). Nowadays, the business environment forces companies to undergo change in order to enhance their competitive position and their sustainability in

1Corresponding author’s email: [email protected]

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a competitive market. According to Halkos, organizational change is the timely and continuing adaption of ideas by companies to rapid changes in the market, through the turnabout of structures, behaviours and processes which target the development and advancement of the organization. Factors that drive the organization change are the globalization of markets and evolving technology (Gilley, 2005). Hence, in order to survive in that cut-throat environment, successful implementation of organizational must be considered an important management task.

Employees are the human capital and the most important units in an organization. The success of carrying out organizational change is highly dependent on the employees’ acceptance and support (Graetz & Smith, 2010). In other words, to successfully implement changes, requires the employees’ to have a’ -positive attitude towards it and to show supportive behaviour (Fedor et al., 2006). Many employees, however, resist change when the change involved affects their daily working habits (Kare, 2015). According to Quast (2012), there are five main reasons the employees resist change. They are -the fear of uncertainty, mistrust, and loss of job control, bad timing and an individual’s predisposition toward change. Employees often live in the fear of uncertainty when people are not given adequate warning and not given help in the process of understanding. Mistrust happens when the relationship the change. Between the manager and the employees are not strong enough to motivate the employees to agree to change. For example, when the manager is new and the trust has not yet been earned, it will cause the employees to resist change. Furthermore, employees resist to change because they worry that they will lose their jobs or be allocated into another area without their consent. Timing is also an important factor. As the saying goes, “Timing is everything”. Change has to be implemented at the right time or with the right level of sensitivity and empathy. However, the resistance to change also depends on the individual’s predisposition toward change. For instance, some people enjoy change because it provides them with a chance to pick up new things and to develop personally and professionally; while some people will prefer the certainty of routine. Normally the individual who prefer the same set of routine more are likely to stay unchanged since they are suspicious of changing (Quast, 2012).

Based on Halkos and Bousinakis’s research, they have found that organizational change will lead to increased stress. Yet, when the necessity and utility of change is understood, it will lead to increasing productivity. In other words, once change is proclaimed, there will be some undesirable effects on productivity and job satisfaction but once the change begins to work, productivity will increase and the stress will be reduced. The good relationship between the leader and the employees will provide significant advantages as well as a feeling of security (Halkos, 2012). The fear of uncertainty and mistrust will be reduces as soon as the sense of security increases and thereby reduces the resistance to change. As a result, managers or team leaders play an important role for the implementation of change. For instance, Chou’s research claims that the transformational leadership style will directly affect employees’ behaviour support for change (Hill et al., 2012).

“Leadership is the capacity to translate vision into reality.” (Bennis, 1985). Leadership is a critical element in organizational change and is the key to success. People with different personalities will adopt different leadership models. Regardless of which style

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they utilize, the possession of leadership qualities are very essential for organizational change in order to handle the resistance, confusion, exploration and commitment of management (Imran & Wasim, 2010). Grudan claims that different authors come to the conclusion that leadership competences are strongly associated with successful organizational change (Imran & Wasim, 2010). Specialists agree that successful leaders are flexible and capable of adapting to new conditions, are open to alternatives and are willing to take risks. (Kotter, 1990). There are different kinds of leadership styles that have strong relationship with the growth of change such as the commanding leadership style, logical leadership style and supportive leadership style (Bennis, 1995).

Commanding Leadership Style

Commanding leadership is focused on performance and goal achievement (Reardon, Readon & Rowe, 1998). Commanding and control is founded on creating and preserving power over, and control of, people and organizational processes (Anderson, 2015). This type of leader is highly productive and result oriented. They highlight their own success and failure more than the input of others (Reardon, Readon & Rowe, 1998). Commanders can be very effective when their primary focus is the achievement of goal. Commanding leadership styles might be the most appropriate when tough budget decision have to be made or when personnel problems call for quick action (Reardon, Readon & Rowe, 1998). Commanding leaders are very goal-oriented and have a very good concept of the ways that they want to reach the goal; however, they are not necessarily bullies forcing their ideas upon others (Reardon, Readon & Rowe, 1998). Result-oriented approaches can be beneficial when the leader has worked together with follower input to define the direction of change after the planning and enabling stages of changes has been effectively conducted. The leaders do not request the completely closed down avenues of input, but they do request for focus on moving along the defined path (Reardon, Readon & Rowe, 1998). They undoubtedly do not want their follower’s behaviour or steps to get out of control in the process of change (Anderson, 2015). To combat that, it has been found that providing realistic job previews has can reduce the problem of unmet expectations for the commanders (Coye, 1985).

Logical Leadership Style

Logical leaders put emphasis on innovation and they communicate that vision to their employees by explaining it (Imran & Wasim, 2010). Kotter declared that leaders who communicate their vision are very important. Leaders with an innovative approach are defined by the ability of a leader to think, decide and act in a new or unique way (Imran & Wasim, 2010). Employees often resist change because leaders do not explicitly link it to the organization’s mission and culture and they do not understand the change (Brubn, 2004). Leaders are more likely to explain the reasons for the change to the employees when spearheading the change. Employees are more likely to accept, support, trust and help in facilitating their leader’s statements about its positive and negative effects if they understand the rationale for change (Brubn, 2004). Furthermore, the logical leader encourages and nurtures an innovative culture within the organization by motivating the employees to bring new ideas and by providing proper infrastructure in order to convert these ideas into reality (Imran & Wasim, 2010). This type of leadership can better

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formulate an organizational strategy for a desirable future and lead the company towards a sustainable success (Imran & Wasim, 2010).

Supportive Leadership Style

Supportive leadership is the most important leadership role in managing and developing culture according to Appelbaum. Organizational culture plays an important role in the development of changes in any organization, for it is the leaders who bring new approaches for developing or managing culture (Imran & Wasim, 2010). Culture is the personification of the values of the organization; an organization’s culture is the one that makes the organization unique (Brubn, 2004). Organizational culture consists of its beliefs and values, the evolution of which may lead the organization from being conventional to being innovative ((Imran & Wasim, 2010). The culture includes unwritten rules, disciplines, and external orientation. The culture and mission of the organization provide the sense of stability and security to the employees who want reassurance that the original purpose and values of the organization have not changed (Brubn, 2004). Besides, the culture and mission are the north stars of an organization (Brubn, 2004). Moreover, it is essential for the leaders to understand the culture because culture could affect the change management effort such as the secrecy culture, the individualism culture and silence culture (Brookfield, 1995).

Inspirational Leadership Style

Inspirational leadership style is characterized by the leader who is able to develop meaningful visions of the future by focusing on radically new ideas where they learn by experimentation (Reardon, Reardon & Rowe, 1998). These leaders show a high level of concern for confirming cohesiveness of members of the organization and encouraging the others to follow the vision. They are inquisitive, curious and satisfied by finding radically new solutions. Inspirational leaders are focused on creativity, gathering important information, identifying problems, considering alternatives and selecting the best alternatives. The inspirational leader encourages open discussion in order to facilitate the process of frame development. Also, the inspirational leader encourages followers to expand energy and invest time in the change effort (Reardon, Reardon & Rowe, 1998). For instance, during the planning phase, leaders offer creative inputs and then they empower and involve the followers in the enabling phase. During the enabling phase, the leader inspires and energizes them to adopt the change after it has been launched and to maintain it despite obstacles (Reardon, Reardon & Rowe, 1998).

Transactional leadership

Transactional and Transformational leadership are the two leadership dimensions that manage the technology. Transactional leadership is more focused on technological changes and technical changes yet less focused on problem solving and the aspect of human relations (Imran & Wasim, 2010). Transactional leadership is a process of exchange of a certain quality of work for an adequate price, however, the relationship between the leader and the followers are reduced (Simic, 1998). For instance, Bass claims that the transactional leader determines their follower’s’ tasks in order to realize their personal and organizational aims; and then the leaders classify these aims by helping the

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followers to be more self-confident so that they may accomplish their goals with minimal effort (Simic, 1998).

Transformational Leadership

Transformational leadership respites on the basis of transactional leadership (Simic, 1998). It focuses on technological changes and the human relation aspects (Imran & Wasim, 2010). According to James McGregor Burns, the new style of transformational leadership is the leadership is that needed today, not the old style of transactional leadership (Simic, 1998). Transformational leadership is a complex process; the realization requires more visionary and inspiring figures (Simic, 1998). The organization’s culture recognizes the transformational leader as having a high level of competence, identity, and experience in their area of expertise (Lowder, 2009). The leader motivates the employees to do more than their expectations, increases their sense of importance and value of the tasks, inspires them to go beyond their own individual interests and direct themselves to the interests of the team, organization or the community for raising the level of change to a higher level (Simic, 1998). Transformational leaders achieve a high level of legitimate power through their strong commitment to high levels of integrity, character and ethics, which is instilled in the cultured through a shared vision (Lowder, 2009).

The components of transformational leadership has been classified into four dimensions- idealized influence, inspirational motivation, intellectual stimulation and individualized consideration (Avolio & Yammarinno, 2002). Idealized influence is the ability to build confidence in the leader, and the followers appreciate the works of the leader which form the foundation of accepting the radical change in the organization (Simic, 1998). This confidence is important in the leader because a lack of confidence may cause great resistance towards organizational change. Inspirational motivation is the ability of the leader that qualifies them as a figure who inspires and motivates the employees to appropriate behaviour. For example, leaders need to take on the task of clear and continuous motivation of others to follow their ideas when they conduct change in an organization (Simic, 1998). Intellectual stimulation is when leaders stimulate the efforts of their followers in regards to innovativeness and creativity, stimulate permanent re- examination of the existent assumptions and the way of thinking about problems. Hence, it may help their followers develop new and creative problem solving ideas. Individualized consideration is the thoughtfulness of the leader towards the abilities of their followers through the process of individual analysis. For illustration, adding the followers into the transformation process of an organization involves the need to make a diagnosis of their wishes, needs, value and abilities in the right way, such as through being non-judgemental and listening intently (Simic, 1998).

The transformational leader has the role of a path finder, and communicates his vision with the employees by exercising skills (Imran & Wasim, 2010). This type of leader provides the necessary resources that inspires followers to share a vision and that empowers them to attain that vision in order to develop their full personal potential (Avolio & Bass, 1993). According to Appelbaum, this type of leadership is more effective for organizations who want to develop change and bring innovation. Transformational leaders will develop different strategies to motivate employees, with one of the best ways

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to motivate employees being the reward system (Imran & Wasim, 2010). Reward system is the organization’s ability to motivate individuals toward superior levels of performance through the provision of rewards for excellence (Appelbaum, 1998). Hence, leader should offer different types of rewards and training for the strategic organizational change (Appelbaum, 1998).

Servant Leadership

Servant leadership puts an emphasis on greater mutual power and influence, with a servant leader being a leader that promotes collective and collaborative follower participation, hinging on high levels of organization learning and significant follower empowerment (Lowder, 2009). Effective servant leaders will focus on overcoming the fear of change, caused by factors such as the number of choices and the uncertainty involved in making choices through creating shared meaning through the organization (Lowder, 2009). The servant leader’s key to overcoming the conflict in the organizational change process is by stimulating each person to become self-sufficient through tapping into their intelligence, spirit, creativity, commitment and uniqueness. This is because according to Banutu-Gomez (2004), “people need structure, order, and predictability to avoid a feeling of powerless in the organizational setting”. In addition, servant leaders request that followers confront their fear of conflict with others to avoid the development of hostility.

During the changing process, servant leader will foresee the future, take initiative, clarify goals, facilitate a shared vision, while sharing and releasing power, as well as sharing status and promoting others (Smith & Wheatly, 2004). This type of leader creates a culture that can add value to groups and members by permitting the followers to focus on goals, take initiatives and to be whom they are in group situations (Gomez, 2004). In addition, the leader makes every effort to create a comfortable workplace environment for the followers. The servant leader has to instil direction and support towards developing an environment where the follower’s motivation is self-evident. However, servant leaders need to focus on developing a learning organization in which followers are allowed to learn new skills, grow intellectually and develop additional expertise when developing follower skills (Gomez, 2004).

Leadership towards Organizational Change Process

In our society, leaders are considered as role models who keep their eye on the organizations’ mission while adapting their products and services to meet the market’s needs and as well as maintaining a forward momentum. Leaders need to have the ability to lead change, manage its effects in adding to anticipating, and planning for the opportunities and constraints of new waves of change (Brubn, 2004). Hence, the leaders are responsible for the organization’s plan of change and then nurturing and guiding its implementation, whilst skilful delegating the details to the employees. The key to implementing a complete change plan to all the employees of the organization is trust between the leader and the employees, with trust being developed by the leader who is open, honest, and a model of the behaviours they expect of others. Besides, a clear explanation of the new tasks, combined with a substantial adjustment period allows the employees to relax and to have less resistance to change (Imran & Wasim, 2010). Leaders

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can build trust by encouraging mistakes and celebrating dissention, so that the leader may also understand the reason behind the resistance. Leaders must affirm that they are willing to accept the occasional blunder because they recognize that with the process of change comes a period of confusion (Bacharach, 2015). Leaders should also encourage the employees who have doubts participate in the changing process, such as through challenging, and refining the problems areas or potential risk because the people who are sceptical may the ones who will identify and correct problems that the change advocates fail to see (Hall, 2008). Sometimes, mastery and achievement are the result of many mistakes so, leaders should create a safe learning environment because great leaders believe that blunder can be a great teacher (Bacharach, 2015).

Moreover, leaders targeting positive change implement strategies that touch people’s values. They encourage all the organization’s members participate in planning changes with acceptable outcomes since the values of members are as important as the values of the leaders (Brubn, 2004). The core idea of successful change leadership is to link the value fulfilment of all members of the organization to the desired goal (Brubn, 2004). In addition, communication is an essential part of organizational change. Leaders should communicate their vision and the proposed change in order to build and manage teams or action committees within the organization. In the situation of the individual who has a negative predisposition towards change, leaders have to implement the change incrementally. Leaders need to implement the change agenda slowly in order to give time for the employees to understand and accept the new ideas. Besides, leaders can ask the employees to review the change, for example, through identifying what they like and what they don’t. This action also helps to reduce the fear of uncertainty. (Bacharach, 2015).

Last but not least, the leader play a very important role in unfreezing since organizational change requires a well-structured way of implementing the change by managing the behaviour and attitudes of people working together. There are eight stages for implementing organizational change powerfully and successfully which is to undergo the unfreezing, change and freeze stage. The first step is to establish a sense of urgency around the need for change. This will be helped in sparking the initial motivation to get things moving. After that, leaders need to create a guiding coalition which takes strong leadership in addition to visible support from key people within the organization. Leaders have to create a vision and communicate that vision to reduce the fear of uncertainty of the employees. However, there are obstacles in the changing process, leader need to remove the obstacles in order to empower their employees to execute the vision and move the change forward. Real change runs deep. During the change process, leaders need to keep looking for improvement and lastly the leader must anchor the changes in corporate culture (Thompson, 2015).

Discussion

It is crucial to maintain change in modern enterprises due to the rapidly changing environment. Organizations need to adapt new ideas of behaviour in order to survive and grow in the competitive environment. Competition, technology, government regulations and the desire for growth are the list of factors that drive the organization to develop. Innovation in technology boosts the business to change alongside the pace of the changing environment. For instance, the introduction of online booking services in airlines has

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resulted in increased efficiency and better services while meeting little customer resistance. Besides, organizations undergoing change may need to improve their method of operation to guarantee growth. As an illustration, Subway Sandwich started the business under a different name and struggled through its first several years. In 1974, the company changed its name to Subway and change their business model thus they began to sell franchises. In 2009, there were 22,525 Subway franchise units in the United State, gamering increased profits for the company.

To successfully implement organizational changes, it is important that employees are in possession of a positive attitude and display supportive behaviour. However, there are five reasons that may cause employees to lack these attributes. These five reasons consists of the fear of uncertainty, the mistrust of the leaders, loss of job control, bad timing and the individual’s predisposition towards change. Employees do not understand the change that is soon to occur or, are not given sufficient warning about the ensuing change, will become uncertain of the positive effects of such change and may fear that it will bring detriment to them. Mistrust of the leader, on the other hand happens when the trust between the leader and the followers has not been established and when said leaders fail to communicate or explain the change to the employees. Loss of job control is when employees worry about losing their jobs when the organization implements changes. It also occurs when employees are used the same set of routines and are worried that they will no longer be able to do their job well. Hence, it is generally agreed that to resolve the resistance towards the change, leaders need to resolve the inconsistencies between their behaviour and their attitude, since employees desire to balance their interactions with the environment and have an intolerance towards ambiguity especially when they are moving from the known towards the unknown.

Many organizations agree that leadership is very important when implementing organizational change. There are various leadership styles that have a strong relationship with positive growth caused by change such as the commanding leadership style, logical leadership style, supportive leadership style, inspirational leadership style, transformational and servant leadership style. Commanding leadership is based on performance and goal achievement. These leaders have a very good idea on how to accomplish their goals. Howell Rainesis is, a well-known figure that utilize commanding leadership which can be implemented successfully in a highly-demanding industry. The regular pressure associated with publishing one of the highest quality newspapers in the world is extreme, thus they mainly request that employees move along defined path and avoid out-of-control behaviour. However, this style might invoke fear among employees, instead of respect. It may end up causing a lack of innovative ideas which can decrease the overall performance of the group. Commanding leadership style is the most suitable leadership style for making tough budget decision or deciding personnel problems that call for quick action.

Logical leaders focus on innovation and communicating their vision with the employees by explaining it. Followers will be more likely to accept, support, trust and help in facilitating their leader’s statements about its positive and negative effects when they understand the rationale for change. The ability of the leader to think, decide and act in a new or unique way is well-defined as a leader with an innovative approach. The logical leader also promotes the innovative culture within the organization by motivating

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employees to bring new ideas and to provide proper infrastructure in order to convert the ideas into reality. Supportive leadership is the leader brings new approaches towards developing or managing culture. The culture and mission of a company provides the stability and the security to the employees who want assurance that the original values and beliefs of the organization are still intact. Culture is very important to the organization; it could change the management effort for better or for worse. Servant leadership stresses on greater mutual power and influence, it promotes collective and collaborative follower participation, a learning organization and follower empowerment.

Servant leaders create shared meaning through the organization to reduce the fear of uncertainty. They create a comfortable workplace environment for their followers and also develop a learning organization in which employees are allowed to learn new skills, grow intellectually and develop additional expertise.

Finally, we have the transformational leader and inspirational leaders, who are almost playing the same role. However, transformational leaders are more focused on organizational development through emphasizing on enhancing employee innovation and creativity. Transformational leaders are more willing to take risk to attain their goals. Risk taking is an essential component of leadership and in the transformational lender it has a greater significance than in the servant leader. On the other hand, inspirational leadership style is where the leader develops a meaningful vision of the future by focusing on radically new ideas where they learn by experimentation. In order to facilitate the process of frame development, the inspirational leader encourages open discussion. The classic inspirational leadership style is exemplified by Google CEO, Larry Page. Larry needs his employees to believe in crazy ideas and to accept all ideas because he believes those ideas could change the world. As a result, he is more likely to hear and include other people’s creative ideas.

Conclusion

In a nutshell, creating change is about overcoming the resistance of people. People are the heart of the organization, therefore, the treatment of employees critical when addressing any change in the organization. Leaders should build a rapport with the employees in order to solve organizational problems through the building of a trust culture in management. To achieve success in today’s environment of radical change, leaders should understand their own strengths and weakness. They have to recognize the extent to which their leadership styles are suited for the demands of the changing phase and the type of people that they need at their side to complement their styles. Leaders might need to take on one or more approaches in order to handle its organizational changes. For instance, different phases of the changing process require different leadership styles because different leadership styles have different roles in the process. For example, during the planning phase, the preferable leadership styles are the inspirational or logical style. During the enabling phase, the leadership styles that are preferred are the logical, inspirational or supportive style. The launching phase requires the logical or commanding leadership style, while catalysing phase involves inspirational or supportive style. In contrast, the maintaining phase requires the logical, inspirational or supportive leadership style, but the transformational leadership style is the essential leadership style to intensify the implementation of successful change. Besides that, the employees’ personal attitudes

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and emotions have been shown to be the most vital contribution to organizational change. There are many companies that fail to implement changes as these companies neglected the importance of transformational leadership and the employees’ responses. Leaders and managers too often only address technical dimensions, however they fail to consider what actions should be carried out at each phase for the best effect. Hence, leaders should know which leadership style is the most effective to be used to run the company.

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