Question

Evaluate in detail, with the use of practical examples, the advantages and disadvantages
of a transformational leader. Evaluate in detail, with the use of practical examples, the advantages and disadvantages
of a transformational leader.

Answer 1

A Transformational leader is one who motivates the followers and contributes greatly to their development. The transformational leader fosters ethical practices in his/her role and promotes an ethical framework with defined set of standards and values.

Advantages of transformational leadership

- Promotes ethical practices in the work environment

- Reduces attrition rate as employees are motivated

- Adapts to change and flexibility in the organization

- Increases productivity as morale is enhanced

- Increases employee engagement.

Disadvantages of transformational leadership

- They tend to miss out on the administrative work/minute details as they try to focus on the bigger picture.

- Transformational leaders are risk-taking and taking too much of risks might be detrimental to the organization as a whole.

- Distributing autonomy and responsibility across the teams creates more pressure and find it highly challenging.

A classic example of a transformational leader is Ex-CEO, Late Mr. Sergio Marchionne. Sergio Marchionne was the CEO of Fiat-Chrysler. His excellent transformational leadership has helped to save the two companies from the brink of bankruptcy. When he took up the leadership role, he first gave moral support to his employees who are frustrated and insecure that their jobs will be at stake. Then, with this reassurance, he worked with this team and selected innovative members for leading and managing the teams. Marchionne went to the extreme of forsaking his luxurious cabin to work with his team in a regular working environment. Marchionne’s strategic leadership has moved the two companies from being bankrupt to profit-making.

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