JLB Enterprises is a computer manufacturer that has experienced a decline in employee morale, productivity, and profits for the past three years. According to a 2011 employee survey, employee satisfaction and morale has decreased approximately 20 percent. Despite maintaining the same number of employees, the efficiency of the company has declined approximately 15 percent. Because of this decrease in efficiency, company costs have increased and profits have decreased.
According to Jones (2006), “… there is no relationship between motivation and productivity.” Jones states that companies can have highly motivated employees, but still have poor performance. Jones also states that companies with poor morale can have exceptional productivity. As a result, the author believes that linking morale and performance is not substantiated (Jones, 2006).
BT.Novations states that companies who focus more on improving productivity achieve the desired results and in turn have happier employees (Enterprise, 2000). This human resources consulting firm supports Jones’ theory according to a research they conducted over a four years period. BT.Novations found that the company that devoted efforts to improving processes to increase productivity had measurable positive results in productivity. In turn, this company had happier employees than another company they studied that devoted efforts mostly to improve employee morale. BT.Novations states that this is because leaders and employees alike wish to have company problems identified and solved. This helps restore faith in the company. BT.Novations identified that employees are actually unhappy as a result of problems that effect productivity (Enterprise, 2000). Based on information from Jones and BT.Novations, it is important to identify the cause of the poor performance instead. According to Lowe and Galen (1996), transformational leadership has shown to be the most effective type of leadership.
Transformational Leadership Defined
According to Bass (as cited in Homrig, 2001), transformational leadership has four components.
1. Idealized influence. This means that trust is built with ethical and moral foundations between the leaders and followers.
2. Inspirational motivation. This means that leaders appeal to the followers’ needs to do what is right and inspire them to achieve it.
3. Intellectual stimulation. Leaders help followers see and understand the big picture and enable them to find unique and creative solutions to problems.
4. Individual consideration. This means that although leaders want followers to see the big picture of the company as a whole, they still remember that followers are individuals. Therefore, leaders will help followers grow and attain self-worth by coaching and mentoring them.
Transformational Leadership Applied
Using the four components stated above, JLB Enterprises can apply transformational...