The transformational leader involves different ways of being, thinking, and acting. The qualities such as righteousness, discipline, expertise, political skill, and consistency are usually associated with successful leaders.
However, words such as sincerity, empathy, benevolence, integrity, resilience, and humility are appearing in the vocabulary to describe this new leadership style and are more likely to have a strong and lasting impact on employees and the organisation. The transformational style moves management towards a truer and more personal model of self-awareness and authenticity. There are six effects on employees and the company from this style of leadership.
Strengthens professional commitment
The recent movements that have shaken the post-COVID world of work have significantly affected employee engagement. Although the challenge of rekindling this commitment is daunting, transformational leaders do so through a more people-centred management of their team. On the one hand, they are keen to build trust with everyone and to act with sincerity and transparency. By creating strong links with employees, they are more inclined to invest time and effort into their tasks. On the other hand, this more people-centred management requires expressions of recognition, which are fundamental to appreciating its value, to foster a sense of wanting to commit to excelling further.
Develop employee accountability
The transformational leader transforms hierarchical relationships by focusing on the fact that everyone, in their own way, participates in discussions, takes part in decisions, and contributes to the progress of the organisation. This empowering leadership promotes autonomy, encourages self-development, and gives an active role to employees through this virtuous concept of empowerment.
Gives meaning to work
Compared to the transactional leader, whose short-term vision of objectives struggles to give meaning to work, the transformational leader is more involved in this search for purpose and generates more satisfaction. They know how to stand back and offer everyone the visibility they need to participate in common objectives. These objectives are also stimulating and give employees the opportunity to contribute according to their potential.
Promotes creativity and innovation
With this management style, where the leader is perceived as omniscient and someone who has the answers to things, the transactional style does not favour employee initiative. On the other hand, the punishment-reward system limits innovation and keeps the employee's attention on the tasks assigned to him. The transformational style, being more focused on intellectual stimulation, strongly encourages the questioning of the usual ways of thinking and acting and encourages everyone to be creative and innovative.
Boosts team spirit
The transactional style can create an atmosphere of competition rather than cooperation by focusing on individual interests via the punishment-reward system. The transformational style is rather part of a unifying dynamic that engages team spirit. They lead the group to think in terms of “everything” towards collective objectives. Believing in everyone's potential, they are able to bring out everyone's strengths and bring them together towards a common goal, where each employee has a role to play.
Contributes to good organisational health
This style of leadership has demonstrated positive benefits for organisations, particularly regarding the psychological well-being of employees, managers, and leaders. Their way of leading teams, in a more people-centred, empowering, and stimulating way impacts performance, not only on the achievement of objectives but also exceeding them. Finally, the satisfaction felt and the meaning that everyone finds in their work from this facilitates the retention of employees, and this commitment affects the general image of the organisation.
Besides the individual development that allows the transformational leader to develop, the organisational context also influences the style of leadership. Thus, to assert their full potential, the transformational leader would find more latitude in environments that value change and are oriented towards trust and consideration. An innovative and well-being corporate culture will have the power to propel the values of the transformational leader since it will foster innovation and initiative-taking, and prioritise the well-being and growth of individuals.
