Whilst transactional responsibilities such as performance management will continue to exist for today’s leaders/managers, transformational leadership is becoming the new normal across many organisations (Forbes, 2020).
In contrast to transactional leadership, transformational leadership, described by Bass & Avolio (1990) is the theory that focuses on inspiring employees to be agile, to embrace change and to adopt a culture that is based on ownership, autonomy and accountability (White, 2018).
Storey (2016) argues that given current global macroeconomic challenges, a balance of transactional and transformational leadership should be considered, with an increase in governance, ensuring that leaders operate ethically within certain boundaries and are held accountable for their actions.
Within my organisation, ‘People & Leadership Practices’ (PLP) define leadership expectations for all people mangers; the framework aspires that all employees should be inspired by authentic leaders who engage with all employees at all levels, whilst providing freedom to act (Siemens Healthineers, 2021). The organisation places high expectations on the leadership team, expecting all people managers with leadership responsibilities to be able to operate in 4 different roles: Leader (Engaging and inspiring their people, setting the vision); Manager (Setting expectations, creating accountability, removing roadblocks); Expert (Problem-solving, sharing knowledge) and Coach (Creating autonomy, supporting self-learning and growth) (Siemens Healthineers, 2022).
People managers are expected to be able to identify which role to emulate in any given situation; in this sense, the framework reflects the need for situational leadership, echoing Hersey & Blanchard (1979) in realising that there is no single ‘best’ way to lead: effective leadership depends on the nature of the task, and the relationship between leader and the individual/group they are endeavouring to influence; the leader must therefore choose when to be supportive, collaborative, delegative or directive.
This framework clearly recognises the differences between management and leadership, yet at the same time, acknowledges that both leadership and management skills are complementary when responsible for the performance and development of others, particularly when operating in a VUCA environment (Kotter, 1990).
This transformational/transactional hybrid leadership approach is democratic in nature, given that it empowers ownership and autonomy at all levels, encouraging creative problem-solving, collaboration and inclusion across all functions (Gastil, 1994), whilst ensuring that the business meets its strategic objectives.
It also reflects the core components of transformational leadership identified by Bass & Avolio (1992), as leaders are encouraged to prioritise employees’ needs and well-being, to inspire creativity and innovative thinking, to motivate team members to step outside of their comfort zone and to act as a role model, leading by example at all times.
What leadership framework does your organisation follow?
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