Professional paper
https://doi.org/https://doi.org/10.46672/aet.10.2.7
ECONOMIC IMPACT OF TRANSFORMATIONAL LEADERSHIP IN DYNAMIC MARKET CONDITIONS
Meri Đula Ercegović
; Veleučilište Aspira
Abstract
This professional paper was created within the home university in order to provide practical help to students, many of them being founders of small companies in Croatia, in raising awareness of the importance of management methods, i.e. the connection of management methods and companies’ performance. In the modern society, which is characterized by political upheaval, economic crises and rapid change, leadership is key to the success of companies. Market changes, such as globalization and technological advances, require organizations to adapt and leadership styles to change. Traditional leadership styles, focused on hierarchy and goals, are becoming insufficient. Instead, transformational leadership, which emphasizes charisma, vision, and inspiration, proves to be more effective. Bass’ theory of transformational leadership emphasizes the difference between transactional and transformational leadership. Transactional leadership is based on the exchange and satisfaction of personal interests, while transformational leaders inspire followers through motivation and common goals. Transformational leaders raise awareness of important outcomes, drive long-term goals,
and develop employees’ needs. In this professional paper, a total of over 80 scientific papers, books and professional journals have been reviewed in order to collect relevant information on the research subject. The final analysis includes about 30 scientific papers and professional journals that best correspond to the inclusion criteria, in the sense that they used MLQ questionnaires of transformational leadership in the research. The research results confirm that transformational leadership has a positive impact on success, motivation, innovation and employees’ satisfaction in an organization. The theory of transformational leadership is applied in different organizations and cultures, with special emphasis on strengthening personal identity, creativity and adaptability of employees. Despite the evidence, there are criticisms
of this theory, including questionable factor structure and too strong emphasis on individual
interactions rather than group processes.
Keywords
transformational leadership, market changes, work efficiency, small businesses, followers
Hrčak ID:
324879
URI
Publication date:
23.12.2024.
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