Transformational Leadership and Trait Theory

Subject: Leadership Styles
Pages: 1
Words: 327
Reading time:
2 min
Study level: Master

Transformational leadership has become an essential element of all successful businesses, especially in the banking industry, and trait-based leadership can enhance it even more.

In my commercial bank, transformational leadership is the primary style used by managers and is directly linked to the trait theory. Transformational leadership involves influencing employees and inspiring them to improve their individual performance (Ghasabeh, Soosay, and Reaiche, 2015). Such an approach entails the necessity for managers to possess certain traits which can help them motivate their teams. The trait-based theory postulates that personal characteristics such as vigor and drive, which are inherent, ultimately determine an individual’s ability to lead (Scandura, 2020). Thus, both theories rely on traits as the primary source of leadership potential (Prochazka et al., 2018). In my organization, managers grant more freedom to employees in their work and allow them to experiment, demonstrating their self-confidence and willingness to take risks. Additionally, the managers are extremely intelligent and they provide information on new trends in the industry, motivating workers to adopt them. Finally, transformational leadership in my bank is linked to the trait theory through managers’ excellent interpersonal communication, which rests on trust and integrity (Northouse, 2016). Thus, the two approaches in my organization are linked together since they ultimately allow the company to achieve better results.

Yet, the organization can benefit from a stronger fusion of the two approaches. The company needs to create a more supportive environment since such factors stimulate relationship-oriented leaders to become transformational (Phaneuf et al., 2016). Moreover, transformational leadership which is based on the trait theory, can ensure improved knowledge sharing in the organization (Lin, Hsieh, and Lian, 2018). Nevertheless, transformational leaders with exaggerated proactive personality traits can negatively impact employees’ job satisfaction (Lia and Yuan, 2017). Yet, leaders who demonstrate more warmth tend to develop behavior that is more transformational, which may potentially cause the bank employees to be more responsive (Prochazka, Vaculik, and Smutny, 2015). Thus, the combination can benefit the bank.

Reference List

Ghasabeh, M., Soosay, C., and Reaiche, C. (2015) ‘The emerging role of transformational leadership, The Journal of Developing Areas, 49(6), pp. 459–467.

Lia, J. and Yuan, B. (2017) ‘Both angel and devil: The suppressing effect of transformational leadership on proactive employee’s career satisfaction, International Journal of Hospitality Management, 65, pp. 59–70.

Lin, K., Hsieh, Y., and Lian, W. (2018) ‘Knowledge sharing and personality traits moderated by transformational leadership’, Human Systems Management, 37(1), pp. 67–80.

Northouse, P.G. (2016) Leadership theory & practice. 8th edn. London: Sage.

Phaneuf, J. et al. (2016) ‘Personality and transformational leadership: The moderating effect of organizational context’, Personality and Individual Differences, 102, pp. 30–35.

Prochazka, J. et al. (2018) ‘Leader traits, transformational leadership and leader effectiveness: A mediation study from the Czech Republic, JEEMS Journal of East European Management Studies, 23(3), pp. 474–501.

Prochazka, J., Vaculik, M., and Smutny, P. (2015) ‘Leader’s warmth, transformational leadership and effectiveness, Journal of Advanced Management Science, 3(2), pp. 93–102.

Scandura, T. (2020) Essentials of organizational behavior: an evidence-based approach. London: SAGE Publications.