Effective leadership entails setting clear direction, creating alignment, and commitment to positive and productive work in an organization. The current business environment requires organizations to undergo change consistently in order to remain competitive. Thus, each business should be responsive to factors such as ever rising technology and globalization of markets in order to survive. Change can either be minor or major depending on the strategic focus of the organization. It may be promoted by the challenges in the organization or transformational leaders, who seek to exploit new capabilities or circumstances in the organization. Transformational leaders inspire people to change perceptions, expectations and motivations towards the next level of performance and success. Transformational leadership, therefore, involves building teamwork and collaborating with the employees to achieve greater success. However, changes should be aligned to the strategic goals of the organization. Strategic goals are initiated after detailed analysis of the organization to determine the current position and what it wants to achieve in the near future. This paper utilizes both literature and case examples to demonstrate that understanding an organization entails understanding the organizational change.

Literature Review 

According to Bass (2006) an organization can only experience positive change if it responds to the demands of the changing business environment. He adds that upcoming trends such as technology and e-commerce should be considered as part of growth in an organization. Effective management and a friendly internal business environment play a significant role in boosting a firm’s competitive advantage.  Cooper notes, “Transformational leadership involves the act of intentional introduction of change in an organizational with the aim of increasing efficiency and cutting down operational costs.” Organizational change can be easily achieved through a cohesive collaboration and sharing of ideas among the stakeholders in a firm. It mainly involves the participation of charismatic leaders in building and sustaining a positive business environment in their organizations. Goal oriented-leaders maintain their focus on progress and ultimately make a positive change in their organization. They ensure that they play the largest part in problem-solving and provide a way out in times of crisis.

 Dionne (2004) adds that transformational leadership values a friendly participation of employees with the guidance of their senior officials. Action oriented leadership calls for leaders in an organization to take the lead in identifying and recommending for change in an organization. As Gill Tinny notes “Change is not a single day process, rather it is a complete journey that ends with the achievement of the desired state.” A successful turn of events aimed at inducing positive change can only be realized with patience and constant focus on an organization’s goals. Transformational leadership entails a multi-track approach that pulls various forces of management together with a common goal of creating positive change in leadership. To attain a meaningful organizational change, certain sections of organizational structure can be altered. The intended turn of events and management practices may face external forces that make significant change towards improving the performance of the organization. It is the responsibility of leadership to identify and bring change in an organization. Evaluating the needs and changing trends in the business world enables the leaders evaluate their organizations and identify areas that require change in their organizations.

Intellectual approach towards organizational process creates a room for positive adjustments and welcome for change. Leaders should be flexible in terms of thinking and acting in order to create room for change that an organization needs for growth. Chenhall and Euske (2007) add that sustained change comes with effective leaders, who are focused in transforming their organizations and attain a high competitive advantage. Leaders who focus on constant change can attain a regular progress that secures their competitive advantage. Regular and timely changes in an organization play a significant role of taking lead in upcoming trends such as technology and human resource skills (Jung, 2003). Competitiveness can only be attained by remaining unique, and this comes with making unpredictable changes especially in leadership practices.

Leaders in an organization promote cooperation and harmony that ensures a joint push towards the goals. Employees remain consistent in their operations guided by the motivation from their transformative leaders (Fernandez, 2006). Some firms even allow their employees to make choices on modes of operations with a condition that they remain within the set rules of the organization. Creating some freedom and involving the employees in the day to day decision-making process creates an environment of trust and responsibility (Tull, 2006). Employees feel motivated, and this makes them produce timely and good results thereby boosting the performance of the organization. Transformative leaders also make use of persuasive appeals that do not interfere with the attitude of the workers.

A leader who embraces change creates a positive working environment. Transformational leadership, therefore, calls for a leader to observe and induce change in an organization with respect to the demands of the current business trends. Change should not be exaggerated to an extent of harming the already existing management structures. A research done by Bosmen Tull (2006) articulates that change is a supplement of the already existing achievements aimed at improving and inspiring progress in an organization.  The success of transformational leadership boosts the competitive advantage of an organization by making it ready for any changes in the business environment. A leader who wants to transform an organization makes a brave move of venturing into a new world of change through evaluation of the possible outcomes. Without the participation and collaboration of all stakeholders and the leadership, it would be difficult to induce change in an organization.


To understand an organization, one would need to understand the various changes undergone by the organization and its fundamental management structures. Big organizations make gradual changes in order to fit in the competitive business environment. Transformational leadership offers an avenue of change in an organization that translates into progress and increased competitive advantage. It is through an effective transformational leadership that organizations meet their goals and make tremendous progress. Transformative leaders envision the concept of participation among all players in the firm. They include all stakeholders in the joint journey of success by harnessing all ideas and energy from the employees. The leaders should take a lead in inducing reforms that spark new strategies that assist the firm meet its goals. Significant transformations occur when leaders can accommodate suggestions from other stakeholders. Various changes that may occur in an organization may take long time to merge with the existing management operations. Leaders ought to induce creative ideas that create change or entire transformation of the organization. In some extreme cases of management crisis, transformative leaders may recommend complete change of operations. Such extensive transformation enables a firm to assume a new look and management, which ignites tremendous progress in the organization.

Transformational leadership acts as a motivational and guidance element that brings various ideas and talents together. A motivated and inspired team figures out and perceives their daily work as success. Leaders who transform their organization start by creating a suitable working environment for their employees. Such suitable environment includes motivation, guidance and corrections in areas of shortcomings. Good relations between the leaders and their employees are the most significant part of a transformation process. Leaders need to note that the transformations and changes made in a firm will only come to effect if they are attractive to the employees. Rigid and unfriendly changes may scare away the workers making them develop negative attitude towards change.

A friendly transformation is, therefore, achieved if all stakeholders are involved and consulted on their feelings about the intended change in the organization. Abrupt change that encompasses major parts of operations in an organization may create a tense and unexpected working environment. It is wise for a firm to identify areas of weakness and make positive transformation. Positive transformation is directed towards meeting the set goals through maintaining a meaningful focus that relates to the projected change in an organization. Efficiency and good output can be found by creating change that entails collaboration between organization leaders and their employees. One major role played by transformative leaders at this stage is to direct various abilities of their employees to specific tasks. Through transformation leadership, leaders can evaluate their employees and allocate tasks according to each employee’s abilities. They also make a follow-up to ensure that each employee remains productive in the area of operation.

An example of an organizational transformation is the Nokia’s focus to remain profitable during the Finnish recession during the 1990s. The multinational company transformed into a diverse business with its core goal of being a leading manufacturer of mobile phones. Leadership in Nokia facilitated this enviable change driven by the need to remain unique in the communications sector. Transformation also provides leaders a chance to align their current agendas with the goals and objectives of the organization. A firm may take a complete turn in both modes of production and management structures. Transformational leadership may dictate a overall change in the flow of operations and management in a firm. Such huge changes are necessary in creating a new look of the organization as well as creating room for future changes. Most multinational companies with complex management structures often find themselves in a situation that demands a huge transformation especially inn their management structures. Leaders in such organizations ought to consider and take the best approach in bringing changes that suit their organizations.


Transformational leadership acts as a motivation element of change that inspires other workers. Transformation is any kind of change in the positive direction that leaders may take to add value to their area of operation. A timely and less complex transformation helps shape the mind of the workers towards meeting the goals by guiding and controlling the performance of the employees. Transformational leaders act as identify and take lead in bringing change in areas that need improvement in their organizations. Effective leaders articulate the possible outcomes from any change of operation before engaging in any kin d of managerial action. Employee commitment and guidance of their leaders make the day to day flow of operations possible thereby enabling an organization meet its goals.


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