Conscious Capitalism Response
Conscious Capitalism Response essay assignment
Conscious Capitalism Response essay assignment
Please respond to the following discussion post as a peer making a comment. Transformational leadership theory occurs when leaders perform their roles so effectively that they gain the trust, respect, appreciation, and loyalty of the people who follow them. This, in turn, changes (transforms) people’s behaviors. Typically, the leader motivates people to work harder by offering rewards (promotions, bonuses, paid vacation) for good behavior, and punishments (demotions, improvement programs) for poor behavior. Some common strengths of transformational leadership theory include the following:
1) It keeps the organization open, honest, and ethical because everyone is united in a common cause.
2) It reduces turnover costs. Transformational leadership seeks to lower staff turnover by making people feel more engaged and included in the organization.
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3) It encourages change. This style of leadership focuses on the positive impact of the change “for the greater good” and tells people how they can contribute to it.
Some common weaknesses of transformation leadership theory include the following:
1) There is too much focus on the bigger picture and some employees need task focus to guide them.
2) It can be risky and disruptive. The problem with change is that it becomes disruptive if it happens too frequently, and detrimental if the leader takes excessive or unnecessary risks.
3) It can lead to increased pressure and employee burnout. While some will feel inspired by a transformational leader, others feel their presence as a constant pressure (Thompson, 2019).
Leader-Member Exchange Theory (LMS) is based on an exchange of outputs between the leader and their followers. LMX is a process that explores how leaders and members develop relationships that can either contribute to growth or hinder personal development. This theory involves a three-step process: 1) Role Taking 2) Role Making 3) Routinization. This theory further suggests that there is an exchange between a leader and each follower, and therefore influences the follower’s decision-making and performance. Some common strengths for LMX include the following:
1) LMX theory makes the relationship between leaders and followers the centerpiece of the leadership process. While other theories tend to focus on leaders or followers alone, LMX theory emphasizes that effective leadership is contingent on an effective leader and member exchanges.
2) LMX theory displays the importance of communication in leadership. Effective communication can cause high-quality exchanges between leaders and followers.
3) LMX theory provides an alert for leaders. It makes leaders aware of in-groups and out-groups so that the leader may be aware and avoid biases in the workplace.
Some common weaknesses of LMX theory include the following:
1) LMX theory supports the development of privileged groups in the workplace, even though it was not meant to. This can cause discrimination in the workplace, consciously or unconsciously.
2) LMX theory is made up of ideas that are not fully developed. It does not explain how relationships are formed or how these exchanges between leader and follower are created.
3) LMX theory lacks a perfect measure of leader-member exchanges (Northouse, 2018).
As a result, both leadership theories can make me become a better leader if I apply them correctly. LMX theory suggests that leaders and followers develop unique relationships based on their social exchanges, and the quality of these exchanges within an organization can influence employee outcomes. Therefore, the way I treat and interact with my followers will influence how the organization achieves its goals. To improve the organization’s performance, I would integrate both theories. I would use the transformational leadership theory to effectively gain trust and to promote change, all while using the LMX theory by maintaining positive relationships and keeping all exchanges with my followers to be positive and uplifting which can motivate them to achieve higher organizational outcomes.
References:
Northouse, P. G. (2018). Leadership: Theory and Practice (8th ed.) [E-book]. SAGE Publications, Inc.
Thompson, J. (2019, August 8). Advantages and Disadvantages of Transformational Leadership. Small Business – Chron. Com. Retrieved May 30, 2022, from https://smallbusiness.chron.com/advantages-disadvantages-transformational-leadership-20979.html