Transformational and Ethical Leadership - Literature review Example

Introduction For more than two decades, globalisation has created a volatile and turbulent economic environment. As a result, organisations that were once considered permanent, static and traditional have given way to innovative, flexible, and adaptive organisations that are more suited for transformation in a new world of change (Doody, & Doody, 2012). However, organisations need to transform and revitalise in order to meet the challenges ahead of them. Most importantly, the quality of leadership is essential as it will present a valuable source of competitive advantage and organisational improvement (Parry & Sinha 2005). Transformational leadership According to Sandhu and Kaur (2012), transformational leadership has been the most prominent style of leadership attributed to organisational improvement and competitive advantage. This is based on its qualitative different approach in regard to motivating followers. Through transformation leadership the followers have been motivated to achieve organisational performance beyond expectations not by simply gaining compliance, but by transforming the beliefs, values and attitudes of followers. In addition, transformational leadership is based on four characteristics; inspirational motivation, intellectual stimulation, idealised influence, and individualised consideration. Transformational leadership develop thinking of followers about situations, supports individuals, and provides motivation, inspiration and respect. These leaders are also comfortable with challenging the status quo, taking risk, and demonstrating high internal locus control (Heifetz, 2006). Armstrong and Muenjohn (2008) add that transformational leadership incorporates the action of the leaders and that of followers in regard to satisfaction of both their needs, and the support of development of continuous path that lead to highest standards in on basis moral responsibility. This includes motivation of followers in order to ensure that they go beyond their own self-interests for the benefit of the organisation, team and community. To be more specific, when we refer to the aspect or dimension of individualised consideration, it may concentrate on changing the motives of followers by moving them in order to make considerations that are more than self-interests but more importantly the ethical and moral implications of their goals and actions. Based on the ethical component, transformational leadership enhances empowerment, adaptation of change, high levels of commitment and motivation, as well as achievement of potentials. As a result, the followers are encouraged to their maximum potential and to exceed the expectations of performance by appropriate and ethical behaviours of expressing management which lead to engendering commitment and trust. Transformational leaders communicate a vision of organisational future, provide a model consistent to the vision, and promote the acceptance of common goals, provide intellectual stimulation and individual support, and holding high performance expectations. By doing this, these leaders get extraordinary things done in organisations (Schermerhorn et al, 2011). Although transformational leadership has created a significant impact in regard to leadership for some time, there are other approaches that have been proposed in order to address leadership, in particular, the ethical issues in organisations. This article discusses how ethical leadership, authentic leadership, and behavioural integrity are similar or different from transformational leadership. It also proposes the approach that offers the best way in regard to addressing of ethical issues in organisations. Transformational leadership and Ethical leadership Ethical leadership is based on acting, making ethical decisions, and leading ethically in regard to the way people are treated, their attitudes and the direction in which an organisation is steered. The visible part of ethical leadership is the behaviour of the leader in relation to individual actions and other people. The invisible aspect is the character of leaders in regard to the process of making decision, in setting values and principles and the ability to make ethical decisions in challenging situations (Darcy, 2010). Similarities Ethical leadership and transformational leadership usually overlap in regard to their focus on personal characteristics. Transformational and ethical leaders usually act in consistent with their moral principles (integrity), care about other people, consider ethical consequences associated with their decisions, and act as ethical role models for other people (Brown, & Trevino, 2006). According to Plinio (2009), ethical leadership is associated with transformational leadership. In regard to transformational leadership, it becomes moral based on the idea that it raises the level of the conduct of human and ethical inspiration for the follower and the leader. As a result, it transforms both. In ethical leadership, influencing others to do the right thing, following the law and obeying regulations are components of ethical leadership. The complex part in ethical leadership is the grey areas in regard to who is responsible in case a problem arises. However, the primary responsibility of the leaders in ethical leadership is to service the followers, deal with conflicts and instruct them in the right way. Thus, transformational leaders represent the outward display of ethical leadership. Though the definitions may are different in a way, there is a common agreement that the two leaderships are commonly focused on influencing followers to do what is right. Souba (2011) add that being of leadership is a process of re-examining and questioning deeply held convictions and beliefs. The connection between transformational leadership and ethical leadership in regard to this is that transforming process requires change and also, ethical leaders must also be transforming constantly. Differences According to Brown and Trevino, (2006), transformational leadership and ethical leadership have distinct constructs. In regard to ethical leadership, it is significantly correlated with the idealised aspect of transformational leadership. It is important to note that this aspect has a clear ethical content. This may be attributed to the moral management dimension of ethical leadership because it is more consistent with transactional leadership style and then transformational style of leadership. For instance, an ethical leader tries to influence the ethical conduct of the followers by setting clear standards then holding them accountable to the standard by using discipline and rewards. In this case, the definition of ethical leadership involves the process of transactional influence which differentiates it from transformational leadership. More importantly, the construct of ethical leadership does not include references to intellectually stimulating or visionary leadership. These aspects are very consistent in transformational leadership but they lack in ethical leadership. The two styles of leadership tend to concentrate more in specific but different attributes even if all the attributes are present in both. For instance, the degree of honesty is more profound in ethical leadership than transformational leadership. Ethical leaders insist that they must be ethical, principled and truthful and are admired by standing on such important principles. On the other hand, transformational leaders insist on inspiration where they are more enthusiastic, energetic and positive about the future. They also ensure that positive emotions are resonating throughout the organisation and help in making extraordinary things happen (Schermerhorn et al, 2011). Authentic leadership and transformational leadership Authentic leaders are attributed to being deeply aware of how they behave and think. Other people perceive them of being aware of the value or moral perspectives, strengths and knowledge of their own and others. Authentic leadership in organisation is described by a process that constitutes highly developed organisational context and positive psychological capacities that result to greater self-regulated positive behaviours and self-awareness on leaders and associates, promoting positive self-development (Souba, 2011). In accompanying the meaning of authentic leadership, there is the perception that the promoted values or beliefs of leaders and their actions are aligned across varying situational challenges over time. Associates learn what the leaders identify with and the benefit of giving specific ways of interacting which could contribute to their development. For instance, the confidence, optimism and hope of authentic leaders come from their strong beliefs and making clear about what they need the associates to do in order to achieve sustainable performance at team, individual and organisational levels. Such leaders recognise their weakness and they work on them in order to accommodate the weaknesses with capable followers and build an engaged and include positive context of organisation. These contexts are important in supporting followers in performance and contributing to individual development on leaders (Avolio, & Gardner, 2005). Similarities Authentic leaders are deeply aware of their behaviour, thinking and how others perceive them, they are confident, optimistic and high on moral character. As a result they may be viewed as a root construct which can incorporate transformational and integrity leadership. Self-awareness, consistency, transparency, and openness are core to authentic leadership and being motivated by positive values and concern for others are essential. They overlap with transformational leadership especially in regard to individual characteristics. Transformational leaders are described as hopeful, optimistic, of moral high character and development oriented which are also manifestations of authentic leadership. They share a social motivation and consider ethical consequences in making their decisions. Authentic leaders are facilitated by their deep sense of self and they are clear in regard to where they stand on important issues, beliefs and values. Based on this, they stay their course and also communicating to others through actions. On the other hand, transformational leaders also posses this deep sense of transforming others through an intellectually stimulating idea, powerful, positive vision, and attention in upgrading the needs of followers and by possessing a clear sense of purpose (Avolio, & Gardner, 2005). In addition, authentic transformational leaders demonstrate personal character and ethical behaviour based on the four dimensions in accomplishment of the most impressive challenges in leadership (Bass, & Steidlmeier, 1999). Differences Authentic leadership is based on in-depth focus on self-awareness of the followers, positive psychological capital and moderating role in positive organisational environment. Although transformational leadership referred to these concepts, the goal of authentic leadership is to make them clear and also show how they contribute to understanding of genuine development of leadership. By definition, transformational leader necessitates that a leader must be authentic and to be authentic leaders does not necessarily mean being a transformational leader. For instance, may be actively or proactively focused on developing followers in order to become leaders, even though they positively impact them through role modelling (Avolio, & Gardner, 2005). In regard to followers, a central premise of authentic leadership is that the relationship between the leader and follower become more authentic over time. This is because followers internalise beliefs and values promoted by the leaders and their possible and actual selves change and develop over time. With time, the followers will realise who they are and as a result, they will be more transparent with the leader. This will benefit the development of the leader. This differs from transformational leadership where the leader actively set to transform the follower into a leader unlike authentic where development process is not active but more relational. Authentic leaders may also incorporate transformational leadership but authentic leadership may not be charismatic. Authentic leaders work hard, build enduring relationships and lead with meaning purpose and value but they are not necessarily described by others as charismatic. In contrast, charismatic is the core aspect of transformational leadership. Behavioural integrity and transformational leadership Behavioural integrity involves alignment between the deeds and words of an actor as perceived by another person with special focus to keeping promise, and enacted and espoused values. It represents the degree of consistence or adherence of the course of action with set of ethical principles that are morally justifiable (Rangapriya, & Barbara, 2012). Its construct is based on credibility, trust, and psychological contracts. Development of trust by the follower is based on the similarity between what a leader says and does. Trust is essential as a key aspect of the follower relationship. Credibility is based on the level of trust that is present between individuals. Thus, leaders and followers must possess a certain level of credibility in order to be believed by others. Given that the perceptions of an individual describe trust and credibility, the adoption of credible leaders in an organisation requires a certain level of consistency and believability (Davis, & Rothstein, 2006). Similarities The similarity between transformational theory and behavioural integrity is that integrity forms the basis for any leadership theory. Transformational leadership theory has set of behaviours which are defined as idealised influence. Leaders who display these behaviours are consistent are a considered to be doing the right thing, demonstrating high standards of moral and ethical conduct. It is important to note that the consistent behaviour in regard to idealised influence is also consistent with the core of the integrity of a leader. Individuals who display transformational leadership usually have stronger internal values and ideals. Such leaders are effective in motivating followers in order to act in a way that will promote the greater good instead of own interests. Such calibre of leaders set expectations that are challenging and achieve high performance. Transformational leaders significantly demonstrate behavioural integrity (Davis, & Rothstein, 2006). In addition, transformational leadership is built upon trust where trust is the basic underpinning of the relationships between the leaders and follower. Transformational leaders gain the trust of followers by maintaining their dedication and integrity, by showing fairness in treatment of their followers, as well as demonstrating faith in followers through empowerment. Thus, transformational leaders recognise the importance of followers in regard to maintaining and changing behavioural integrity in the eyes of the followers who are undergoing necessary adaptation (Moorman & Grover, 2009). Conclusion Ethical leadership is proposed to be best placed in addressing ethical issues in an organisation because if the incomes it influences. Followers emulate the behaviour of ethical leaders because the leaders act as credible models who normatively model appropriate behaviour. Ethical leaders communicate why ethical standards are important and as well use performance management system in order to hold the employee accountable in regard to their conduct. Through this leadership, followers do not need to learn about discipline and rewards directly, but they can learn by observing the outcomes of others based on social learning theory. As a result ethical leaders will influence a conduct that is ethics-related such as decision-making of employee and counterproductive and pro-social behaviours mainly through vicarious learning process and modelling. In regard to ethical decision-making, ethical leaders can influence the ethical quality of the decision of followers especially during physical absence of the leader. First, ethical leaders will be a crucial source of guidance as attractive role models for their followers. As ethical leaders set ethical standards and also communicate to the followers, followers will then have an opportunity to observe and learn decision-making that is ethically appropriate. These opportunities are will be important in challenge the thinking of follower, and encourage and support their own ethical decision making. Second, the followers will realise that they are held accountable by the leaders in regard to their decisions and will use discipline and rewards to do so. As a result, followers will focus on ethical implications of their decision, hence making more ethical decisions. In regard to follower work attitudes, the follower attitude is expected to be positive based on the trustworthiness, honesty, care and concern of ethical leader for the followers and their principled and fair decision making. As a result, ethical leadership will be related to leader’s satisfaction as well as job dedication. In regard to the counterproductive behaviour of the follower, various terms have been common in describing the negative behaviour of the follower that is negative to other followers or organisation. Focus on influence of leaders in regard to such behaviour will reduce counterproductive behaviour of the followers. As a result, ethical leadership will be effective in reduction of such behaviour since followers focus on ethical leaders as their models. This will lead to emulation of ethical behaviour. Based on pro-social behaviour of the follower, ethical leadership will influence pro-social behaviour through social learning where followers will identify with these leaders and copy their behaviour. Authentic leaders can judge ambiguous ethical issues by aligning decision with their own moral values. However, this may lead to positive and negative leadership due to qualities such as defensiveness and manipulation which are also present in transformational leadership. As a result, such qualities can lead to unethical behaviour. Behavioural integrity is more focused on the perceptions of the followers but not on the perception of the leaders of what he or she does. Perception of the followers may easily encourage dishonesty and as a result, lead to unethical behaviour. References Armstrong, A, & Muenjohn, N 2008, “An ethical dimension in transformational leadership”, Journal of Business systems Governance and Ethics, vol. 3, No. 3, pp. 21-36 Avolio, BJ, & Gardner WL 2005, “Authentic leadership development: Getting to the root of positive forms of leadership”, The Leadership Quarterly, Vol. 16, pp. 315–338  Bass, BM & Steidlmeier, P 1999, “Ethics, character, and authentic transformational leadership behaviour”, Leadership Quarterly, vol. 10, No. 2, pp. 181-217. Brown, ME, & Trevino, LK 2006, Ethical leadership: A review and future directions, The Leadership Quarterly, Vol. 17, pp. 595–616 Darcy, KT 2010, “Ethical Leadership: The past, present and future”, International Journal of Disclosure & Governance, vol. 7, No. 3, pp. 198-212. 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Souba, WW 2011, “The being of leadership”, Philosophy, Ethics & Humanities in Medicine, vol. 6, no. 1, pp. 5-15 Read More