JLB Enterprises has issues with falling productivity. After investigating the productivity decrease it was discovered that the only factors that changed over the period of reduced productivity were employee morale, motivation, and satisfaction. Transformational Leadership Theory proposes that employee attitude directly impacts employee productivity. Applying tenets of Transformational Leadership Theory may be the key to raising JLB's production.
According to Colorado State University - Global Campus (2013) research, JLB Enterprises' production efficiency has declined 15 percent over the past two years. All other measured physical factors (employee count, production processes, etc.) have remained constant over the same period. To measure intangible factors, JLB has surveyed their employees annually to measure satisfaction and morale. Over the past three years, both of these factors have decreased by 20 percent. Additional surveys show that employees don't feel very motivated.
Since no employee changes have been made and all processes and materials have remained the same, this decrease in production is affecting JLB's revenue significantly (Colorado State Universtiy-Global Campus, 2013). To attempt to raise production levels back up, this paper suggests that Transformational Leadership Theory may be part of the solution. Transformational Leadership is an inspirational style focused around employee motivation; leaders "use their energies to engage followers toward goal attainment"(Choudhary, Akhtar, & Zaheer, 2013).
Grant (2012) writes in his study "Leading With Meaning" that transformational leadership directly impacts business productivity. Productivity is influenced by motivating followers. Motivated followers will do a few things that can boost productivity according to the level of their motivation. They may be motivated to produce a better product at work, or to continue to work and be productive even when they don't want to, or when continuing to work may be against their best interests. They put the good of the company or the customer above their own.
One transformational technique that Grant (2012) studied shows positive correlation between its use and employee motivation. This technique is to increase contact between the producer and the product end user. He showed that when an employee had more contact with the end user, the impact the product has on the end user is more evident. This impact can influence a follower to put forth a higher effort, have more persistence, and better overall job performance. If...