Introduction- Understanding of leadership
Under this part we are going to explain the importance of transformational leadership in the context of driving creativity and innovation in the workplace. Transformation leaders are those who constantly aspire to develop their leadership skills and often inspire their followers to show outstanding performance.(McCall, 1985). People who are motivated do better when opposed to people guided by power. These leaders empower their supporters to a large degree and get the best out of them ("Leadership (Book, 1978) [WorldCat.org]", 2020). The relationship between transformational leadership and the creativity of workers by mediation of employee understanding of supporting innovation, positive and negative affectivity, an essential incentive("Employee Learning Orientation, Transformational Leadership, and Employee Creativity: The Mediating Role of Employee Creative Self-Efficacy | Academy of Management Journal", 2009).Transformational leadership varies from conventional models, which have a significant effect on growing organizational creativity.In addition, the aim of transformational leadership is constructive and important as it extends the principle of imagination to identifying current challenges and to pooling resources and traditional solutions to develop innovative approaches to problem-solving. The objective of transformational leadership is to tackle the underpinnings of innovation, which may be a successful way of promoting imaginative thought.
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Importance of leadership in the innovation process-
Organizations having weak leadership continue to be less successful and are vulnerable to various consolidation and downsizing in order to fix their issues. On the other side, organizations having innovative and successful management are striving to eliminate the need for significant change and downsizing. More than 70% of the people have their opinion that innovation counts to be one of the top three pillars of growth for their respective organization in the next upcoming three to five years. In a separate study of 600 global business owners, managers, and professionals, respondents described leadership as the strongest indicator of innovation success.("Leadership and innovation", 2008).Those who identified their own company as more creative than other organizations in their sector classified their leadership skills as "strong" or "very strong." ("Leadership and innovation", 2008). We can design innovation networks; Networked employees can know their innovation and help them caught up more easily (FungInstitute,2020). Since new ideas tend to inspire more new ideas, networks are generating a process of creativity. Efficient networks allow people with various kinds of experience and forms of solving issues to cross-fertilize ideas. Therefore, by concentrating on getting the best of the innovative networks, leaders can extract more benefit from current capital while implementing a large-scale change management program. We can go for the following practical steps to advance innovation-
- Define the type of innovation that drives development and helps to achieve strategic objectives
- Connect innovation to the structured agenda at regular executive meetings.
- Set performance indicators and investment goals
Leaders will consider two forms of metrics: financial (such as the proportion of gross sales from new products) and behavioral.
Transformational leadership stimulates the productivity of workers by psychological encouragement. At the organizational stage, it has been studied that transformational leadership is strongly related to corporate success, calculated against a market-oriented metric built, especially for emerging countries and evolving modern industries. Transformational leadership has an essential effect on creativity at both individual and organizational levels (Gumusluoglu&Ilsev, 2007). Transformational leadership can actively and implicitly affect corporate creativity and innovation. Leadership has been proposed as a significant aspect of influencing creativity. Several surveys have found that transformational leadership has a significant effect on organizational innovation. Organizational innovation was described as the organization's ability to produce new or better goods or services and its performance in getting such products or services into the market. Transformational leadership was believed to have a significant effect on organizational innovation. Transformational leadership is a significant determinant of organizational innovation and encourages executives to participate in transformational leadership to promote organizational culture. In line with this, transformational leadership, which is widely proposed as a focus of management preparation and growth in developing countries, moreover several studies come up with this fact that this leadership has a positive impact on the organization's innovation (Gumusluoğlu&Ilsev, 2009)
Transactional Leadership-Transactional leadership is described as emphasizing the contract or the exchange of interest that the leader owns or manages that the employee needs in return for his / her services. In simple words, this type of leadership is focused on the premise that people are influenced by a combination of incentives and punishment. These types of leaders operate within the existing culture of the organization to maintain the status quo. Such leaders make sure that employees get the job done and follow the rules of the organization. Thus they are likely to contribute towards innovative processes and activities by what performance standard is required (OKE, MUNSHI & WALUMBWA, 2009)
Conclusion- Leadership plays a critical function in fostering productivity results in organizations. However, a 'one size fits all' solution to leadership may not be accepted due to the various mechanisms and practices involved in innovation efforts. While transformational and transactional leadership are distinct types of leadership, they can be treated as complementary rather than opposites. In reality, both are important for organizational success, and the best leaders are both transformational and transactional. Owing to the diverse nature of the organizations and the world in which they work, all types of leadership can be needed for triumphant organizational success. However, these function in radically different forms to inspire workers and are not substitutable. The transformational leadership style would be better geared to promoting an innovative growth cycle than a transactional leadership style. On the other side, we suggest that the transactional leadership style would be more suitable for the execution step of the innovation cycle than for the transformational leadership style.
(2020). Retrieved 2 April 2020, from https://funginstitute.berkeley.edu/wp-content/uploads/2012/10/Managing-Creativity-in-Small-Worlds.pdf
Employee Learning Orientation, Transformational Leadership, and Employee Creativity: The Mediating Role of Employee Creative Self-Efficacy | Academy of Management Journal. Journals.aom.org. (2009). Retrieved 3 April 2020, from https://journals.aom.org/doi/abs/10.5465/amj.2009.43670890.
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