Advantages of the Transformational Leadership Style in Startups

Sep 11, 2023
What Is Transformational Leadership Style?

A company, including a startup, requires a leader skilled in conflict resolution. Leaders must possess the qualities of transformational leadership to propel all aspects of the company, including its employees, forward. So, what is the transformational leadership style? Here is the explanation.

Also read: 7 Roles and Responsibility of a CEO in a Company

What Is the Transformational Leadership Style?

What Is Transformational Leadership Style?

What Is Transformational Leadership Style?

Transformational leadership is a method for a leader to motivate and empower the team or individuals under their charge to collaborate in realizing the company’s vision and mission. In contrast to leaders who merely assign tasks to their employees, leaders employing transformational leadership provide their employees with more opportunities for growth. Employees feel they have more time and space to refine their skills, which will prove valuable in their future roles. This benefit can enhance employees’ creativity at work. Creative employees contribute innovative solutions to the company’s challenges.

Generally, subordinates of leaders who embrace a transformational leadership style naturally demonstrate a high level of commitment to the company. With all these advantages, a transformational leadership style can foster a healthy work environment and efficient work patterns for addressing daily issues.

Also read: Chief Executive Officer: Definition and Roles

Characteristics of the Transformational Leadership Style

After comprehending the aforementioned definition, it is time to delve into the characteristics of the transformational leadership style. Essentially, four main elements define this leadership style. The following is a list with explanations.

  • Inspirational Motivation

One key characteristic of the transformational leadership style is the presence of inspirational motivation. Leaders with this trait can provide clear communication to their subordinates. Effective communication can align employees’ perspectives, making the realization of the mission and vision more tangible. Leaders assume the role of mentors, motivating their employees and boosting their enthusiasm and optimism.

Also read: 7 Ways on How to Improve Employees Quality of Work

  • Individual Consideration

Leaders displaying this characteristic genuinely embrace the transformational leadership style. They recognize the unique qualities of each employee and maintain open lines of communication. These leaders are attentive listeners, valuing employee suggestions and criticisms, and responding with constructive solutions or feedback. Even small forms of support can significantly impact employee performance. By acknowledging each individual’s distinct personality, leaders can provide the necessary personalized attention during interactions.

Also read: 8 Ways to Increase Startup Employee Productivity

  • Idealization of Influence

Leaders employing the transformational leadership style focus on building a cohesive workforce dedicated to achieving the company’s vision. They are viewed as role models by their employees. Therefore, upholding strong moral standards is essential to ensure a shared perspective among team members. In this characteristic, leaders often mentor and train employees to uphold the leader’s work ethics and values.

Also read: 7 Ways to Retain Potential Employees for Companies

  • Intellectual Stimulation

Leaders practicing the transformational leadership style continually provide opportunities for their employees to learn. This approach prevents the work environment from stagnating. As thoughts, techniques, and targets evolve over time, efficient achievement of substantial results becomes possible. Leaders must proactively encourage team members to seek innovative solutions to the company’s challenges.

Also read: What is Startup Founder, Definition and Roles

Advantages of the Transformational Leadership Style

Leaders adopting the transformational leadership style enjoy various benefits. One notable advantage is the leader’s role as a mentor. A mentor continually provides motivation and training to their employees. Beyond training, a mentor’s approach allows them to tailor their guidance to meet each employee’s unique needs. Properly trained employees can experience rapid development, ultimately becoming the company’s future leaders.

Disadvantages of the Transformational Leadership Style

Having understood the theory of transformational leadership explained above, it is crucial to recognize its drawbacks. Although effective, the transformational leadership style may not be suitable for unstructured companies, especially young startups. Such companies often grapple with various uncertainties and need a structured approach to identify and address issues. Additionally, bureaucratic work environments are generally incompatible with this leadership style.

Also read: What is Co-Founder? The Definition and The Responsibilities

Is the Transformational Leadership Style Suitable for Startups?

What Is Transformational Leadership Style?

What Is Transformational Leadership Style?

Despite the aforementioned disadvantages, the transformational leadership style remains a suitable choice for startup companies. This is because startups usually already have a defined structure and adapt quickly due to their ambitious visions. Companies operating in dynamic high-tech industries are particularly well-suited for this leadership style. Transformational leadership strengthens the company’s resilience, enabling it to thrive in today’s disruptive era.

Also read: Founder VS Owner VS CEO of A Startup, Here are The Differences

Tips for Adopting the Transformational Leadership Style

Adopting the transformational leadership style in a company requires careful consideration. Several factors should be taken into account to successfully motivate employees to perform at their best. Here are some tips for implementing the transformational leadership style in companies:

  1. Assess whether change is genuinely necessary and explore opportunities for improvement while considering the team’s current condition.
  2. Embrace experimentation and avoid complacency, even in the face of success in one area.
  3. Encourage and listen to employees who offer innovative ideas, valuing their contributions and implementing effective suggestions.
  4. Take full responsibility for the choices made, recognizing and addressing potential risks while taking accountability for the team’s accomplishments.

In conclusion, transformational leadership is a style capable of driving positive changes in the corporate environment, leading it towards greater development. Understand the transformational leadership theories mentioned above and select the most suitable individual to lead the company, while also considering the appropriate leadership style based on the company’s existing work patterns and structure.