Assessment Of The Transformational Leadership Theories Commerce Essay

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Bennis and Nanus, Tichy and Devanna, Kouzes and Posner forced emphasis on leaders who are involved in various changes taking place in a organisation and are operating from highest position within the organisation.

Fashion to go is one of the most successful businesses in UK. It has many success stories from the day it was started. Its leaders are a visionary leader who lead the company to many organisational changes and main focus was on the making a company as more customer focused company and developing the company's workforce.

Mark, Joe, Laizen are of view that success of a leader depends on making a reliable on which you can trust and effective who can influence others and happy and cooperative workforce.

They points Four key facts, that a leader should provide workers which will satisfy them, making them follow you and motivating them to take actions these are:-

A job in which he or she is interested


A chance

A supportive boss, either being a problem


The five pillars was introduced by French and raven which are considered as 'basis of power'.

French Raven's model mainly answers the quest: what is a key attribute that organisation, group or individual have to influence others (Shannon, 1996).

Coercive : Power can be used in a way that create afraidness

Reward : ability to manage and control rewards

Expert : special knowledge or expertise

Legitimate: Power of being a leader, his position that provide him power or right to use other powers

Referent: Power that implies with followers and subordinates, in order to influence them by rewards

Among the three powers, there are two powers that are behind the success of Fashion to go leadership.

Legitimate Power

A person in an individual position inside the organisation has right to know, demand and complaint against and hears that from his/her subordinates. It is a formal power and authority given to Position Holder.

Mark, Joe, and Raizzen used this power fully. They use their ideas and made people to follow them by influencing them, discussing the facts with their followers. They are able to lead the company in very effective manner.

Expert Power

It includes Influence of communication, interpersonal skill and style, scientific knowledge .expertise when is specified to a particular task is considered as valuable. Fashion to go is established by fashion journalists although having low business know how but they know very well about changing fashion trends.


This model is comprised of three Interlocking Activities

(Thomas 2005)

This model has two main powers

: Timeless

: Not culture or situation dependent

: It is quite helpful for a leader to identify which part of the company or which member from the team needs to be strengthened in order to achieve its objectives.

This model mainly emphasis on hierarchical structure of the organisation and providing same type of innovation.

It is seen that Fashion to go mainly has adopted hierarchical structure in ware house and back office functions .there are less indifferences in ideas .culture is fully formalized and defined and have a lot of effect on the employees and management's leadership style.

Management team discusses the situation with each other and take decisions.

Workers and employees under the provided instructions.

Mangers are capable enough to handle 250 employees.

Its annual growth is 12% that is quite marginal.



The traits, behavioural tendencies, and characteristic methods of a person in a leadership position are a leadership style of a person. Rosen (1989) thinks leadership style is a typical style of a leader that he uses in decision making and while using his authority.

IMITATION OF COMPANY HEADS IDEAS BY OTHER LEADERS WITHIN ORGANISATION:-the other leaders within the organization also imitate the leadership style of CEO. That has changed the structure and shape of the organization. However working and leadership style of London subsidiary is quite different from that of Milton Keys that gave rise to clashes and indifferences of ideas .and that is also resulting in slow growth rate.

Including man's wear and children's wear


1. More expertise

2. Knowing trends

Which canbe easly done by fashinalities of company

ADAPTION OF HIERARCHIAL STRUCTURE IN ORGANISATION: - organic structure uses formalized rules and regulations, it is decentralized in nature, shared type of decision making in which every person is involved and is able to share idea, widely defined job duties and hierarchy also prevails side by side at lower level. The innovation is in wide manner and is able to cop with changing external environmental changes. So it is very flexible. Company's structure is compatible enough to change according to its objectives that is


Working overseas and working online


1. Knowing different cultures

2. Adopting new culture

3. Technology knowledge leader and

Company can provide scientific leadership skills and knowledge to leaders and management as well


SLOW DEVELOPMENT: - with the reason to some indifference the view of the city and its financiers is that is a reason why company is not growing in fast manner and will not be able to compete with the aggressive competitors.

BENIGN DESPOTISM MIXED MANAGERIAL STYLE: - company have 3 managing directors in 10 years. it is centralized control in fashion to go .rules are strict and law and order is always maintained



Current Requirements     

Every business wants to successful and remains successful but the environment is too competitive. Most of companies are giving focus towards strategies regarding how to get more and more potential from human resources

1. To increase productivity

2. Better decision making

3. Improve job satisfaction

4. Commitment among employees

5. Adaptable nature of employees

6. Effective communicationPeople as a source to competitive advantage: every business pays most of the attention towards competitive advantage over others. So nowadays only because of this reason companies include in their strategies list:-


Employees are seen as main pillar to big business. Organizations prefer to give them power and responsibilities to their staff and employees.

Developing Participative management skills in leaders;- some skills are needed by employees in fashion to go to exhibit and exercise participative leadership properly. They must have skills like ability to resolve conflict, Negotiation, flexible nature.

Emotional intelligence:-very fewer leaders have capability to possess the full control over emotional intelligence. It is a tool that is quite effective in providing developing leader a competitive edge. It is to recognize our personality. To evaluate and find out strengths and weaknesses.

It includes:-

Self awareness: - according to many researches today leadership performance requires a most of the level of emotional intelligence. And self awareness is necessary part for this.

This can help in decision making more effective

Helps in getting more potential from suppliers ,customers and peers

Communication become more effective

Motivation: - leadership and motivation are to unseparatable parts. This not only beneficial for management level only but also among employees.

This gives ability to lead

Capability to influence group or team



Task orientation30%

Company is now making plans for expansion in to the overseas markets .and for the purpose company require a good leadership style. That need to co-ordinate work across continents and to adapt and respond to contrasting working and customer cultures. So task focus is needed in great manner. And that will come with the help of organized control .as fashion to go ,have many emerging and established competitors the focus of competitive advantage is vital necessity.

People participation70%

People are key to success .records clearly show that as benign despotism mixed with occasional pandemonium leadership style is adapted by company. company have hierarchical structure but as most of the companies are realizing that hierarchical structure are no more profitable structure so companies are adopting flatter structures ,in which participative approach is fully exercised. So, in future company must have to realize the fact that hierarchical structure

Present style Proposed Future style

The warehouse and back office functions



MANAGING DIRECTOR AND WAREHOUSE MANAGERS (can communicate with each others, can communicate with Heads


(Have right to communicate with heads)


(Leads employees AND Supervisors)


(Have right to say in decision making, can communicate with managing director and warehouse managers)


(Lead employees)

EMPLOYEES (only work according to Supervisors

Company is not growing at fast rate only because of its hierarchical style, and as the competition is raising .competitors like Luxury fashion and goods makers are entering into on-line fashion retailing they are more aggressive and have more organized structure. Virtual organizations are emerging and they will have good success in future. In order to respond dynamic changing environments in future more and more companies are making 'virtual teams'.

As Fashion-to go is thinking of expanding its business overseas establishing virtual teams will be needed and it will no more support traditional leadership theories and models

So shape of organisation will look like

SUBSIDARY 1(Overseas)

Working according to legitimate powers given by MANAGEMENT TEAM but also will have its own managerial team the will work according to provided directions Communicating through


(LONDON) Internet

SUBSIDARY 2(Overseas)


However this will require quite active control and more ever it will require:-

Transformational leadership style


Self awareness

Knowledge and expertise

Good communication

Resolving conflict ability



Developing Emotional Intelligence among Leaders

It is need to give focus on area that is emotional intelligence. Leaders in fashion to go have quite less business knowledge .however through their innovative and visionary leadership style are able enough to grow their business. But not for so long they can be able to stick with these traditional ideas they have to transform their leadership style with changing external environments. For a leader to be successful in future need is to learn skills that how he could be able to influence people.


Dubrin et al (2006) gave some traits emotional intelligence. These are:

Self-awareness - leader of must be aware of his emotions, his skills.

Self-regulation -future leader should be capable of controlling his behaviour, should be patient and capable of reacting according to the situation.

Motivation - future leader should be capable of motivate and satisfy others

Empathy -he should be able to read mind of others

Social skills - social skills are always important .no business can be isolated from external environment. Leaders must possess strength of bringing good relations with others

Developing leaders

To develop future leaders and evaluate them Fashion to go needs to make a list of required competencies .As Company is planning to move in to man's wear and children's wear. Organisation requires gaining knowledge about the market trends for that business. for this management need to develop their leaders and also employees as well by motivating them providing them needed material and expertise.

TECHNICAL KNOW HOW: - technical know how will be the major concern with the management and leaders of the company in future.

As company is planning for growing its business online and in overseas market. Technology will make work no doubt easier as building a virtual team will be a good option but for working in such a dynamic environment will not be a simple task. Management and leaders must have to exhibit certain leadership qualities

Leadership qualities


Emotional intelligence

To influence others


To test and review projects

Technical knowledge

To work in web based business

LEADERSHIP SPONSORSHIP:-Senior Executives in Fashion to go can sponsor and participate in leader development programs. They can provide panel discussions.



Leadership development programs are easy medium to increase the effectiveness of leadership in the management as well as employees inside the organisation

TRAINING AND COACHING: - Training and coaching workshops and courses are quite helpful in increasing competencies, listing up values with true and real values. It is quite needed in fashion to go, because growth is slow. Two main subsidiaries are having clashes and the reason is that they lack intellectual communication and sense of cooperative leadership.

Courses: courses may include technological knowledge, motivation courses, and self awareness programs.

Corporate Universities: it is necessary to understand that people are key to success and ideas that are present in the mind of employees. Company strategy is easily learned and stated with the company's strategies with the help of corporate universities

MENTORING: - being a mentor is not easy. But it is quite helpful in building an effective team.

It maintains and improves leadership and communication skills.

Learning and teaching new perspectives.

Good medium of communication between management and group, team and employees.

Fashion To Go, required this development programme and also have to include E-Learning-Commerce Training Programs

ACTION LEARNING:- people learn through actions most efficiently then learning theoretically .here person can apply what they are learning. According to Mike Pedler(1991),action learning uses tasks as medium for learning. It has three main parts:-

People who are responsible, to solve issue and take actions.

Colleagues who support

And task that people set themselves

So, it is a quite useful approach to learn and develop people.

E- LEARNING: - company is thinking of expanding itself as inline business thus company requires giving its employees but also management also require learning basics of E commerce.

Thus with the help of scientific leadership it can be easily done

E learning require

: Patience skill in leader

:how to react in quick manner

:Influence people of different cultures

:How to develop web based meetings in effective manner

:doing transaction online in secure manner

;developing a company's security policy in sense to convince customers online



Leadership development initiatives today provide:-

Ability to check performance and support performance checking.

Answering how skills can be exercised in real world.

Motive behind the leadership development is to involve action rather than of knowledge. People learn more by working practically rather of theoretically, opportunities are provided to them in leadership development programs.

Development programmes are only beneficial when they are according to the goal and objectives of a business. So that they will result in great impact, however some organizations give more value to events than systematic approach. I.e. giving more importance to situation rather then planned development .this is having quite better effects when changes to made frequently as a result of external changing trends. So no long scenarios work in that type of condition decisions is to be made in quick manner

However, fashion industry changes with seasons. That results in change in outlook of leaders. More and more innovation and motivation programmes are required.


Need for fashion to go:-

Traditional organisation structure will not go long and need to provide leadership education through which they can develop their skills, identify where they lack where to improve.

Encouraging people to provide their best potential is needed because when the business will be expanded their is will be

Indifferences in ideas

Rise in clashes and conflicts

So need will to encourage commitment and self awareness in them.

Work as medium of communication .when their will be workshops and seminar programs everyone will have a platform to give their idea. From that many leaders will develop.

Technological knowledge will be provided inside organisation so that will be according to the task.


It a need of time trends are changing a t fast rate and fashion industry is that kind of field where leaders have to make changes in their working style, Behaviour and trends as according to the changing demand.

Most of the people prefer to busy online as it is less time consuming, realizing this is is wonderful thinking of a company to work online. Working online and web base business is not an easy task. it requires many kinds of behavioural outputs and leadership skills;-

Business knows how that needs techniqulities of E commerce like:-

Web site designing

Server basing

Expertise knowledge

Describing products online

Ability to convince people of different culture

Product delivery policies

Transaction currency policies

Making privacy statements

So these types of technicalities can be easily taught to leaders and employees.

Working overseas requires Changing according to different cultures and done in timely development programmes can do this in easy manner.


No doubt for so long leadership style of Fashion to go has remained same from ten years despite of its changing Managing Directors. It is because of good demand and supply control that company was made able to grow quickly. However some conflicts are hampering its growth and that can be overcome by good leadership development.