Transformational Leadership & The Legendary CEO; Jack welch

Transformational leadership is first introduced by James MacGregor Burns (1978), however it refers to the leadership approach which brings change both in social systems and also in individuals. It generally plays a major role in creating highly valuable, as well as positive change among the followers, something that is mainly aimed at the development of the followers to become leaders.

It play a major role in improving the morale, the motivation as well as improving the followers’ performance via numerous mechanisms, some of which include linking the sense of identity of the followers to organizational missions (Luthans & Avolio, 2009).

According to Eagly, Mary, Johannesen, Marloes and Van (2003), transformational leadership generally draws on assorted approaches and capabilities to leadership bringing about various kinds of distinct advantages to organizations. The leaders who adopt this kind of leadership are people of great integrity, and besides, they always strive to make sure that good examples are set to the followers besides ensuring that there are very clear communications of goals to the followers (Daft, 2005).

Application of Transformational Leadership

Speaking about transformational charismatic leader who had tangible results, Jack welch can come at the top in which after he has been appointed as the chairman and CEO at GE for 20 Years he managed to grew the value to an outstandingly where in 1980 year before Welch became CEO, GE recorded revenues of roughly $26.8 billion. In 2000, the year before he left, the revenues stood at $130 billion (Rediff News, 2008).

Although he was known as Neutron Jack in his early years at GE by selling off unprofitable businesses and shedding bureaucracy, which resulted in the loss of about 100,000 jobs, But he managed to grow the profit. It has been noted that jack was the first to speak about the bill cure and implemented, where company is consisted of 20% high performers, 70% average and 10% lowest in which he advised to be terminated at any year. Such can reflect that fact that although this methodology sound logic and effective but implementing such consistently would reach a point that no matter how good your bottom 10% is, they still need to be fired (Reeb, 2014)..

It is acceptable fact that Jack Welch generally had highly incredible influence over the followers, on the other hand, the tactics that he used in order to gain influence and power is the major thing setting him apart. Under Welch’s leadership, there was change in followers at GE together with the entire organization, it is evidenced by the major change attempts he had as. When he at GE, he mainly strived to develop the followers in order to make them to be leaders and before he retired as the CEO, he made sure that the individuals who were supposed to lead the firm forward were fully prepared.

Jack was also known to provide the followers with various kinds of lavish rewards as they are performing their tasks well. He also pointed to the followers that he was capable of doling out various kinds of rewards, an indication that he made use of the reward power for influencing the followers. The followers of Jack generally had positive feelings about him; his charisma, as well as his genuine care for the followers gave him referent power. The followers generally like his persona (Lawrence & Robinson, 2007).

He showered the best performers through increasing their compensation, as well as gifts through training, praise, as well as stock options. Jack noted that all individuals require different things for them to be motivated (Lawrence, & Robinson, 2007). However, the major motivation concept that he applied was empowerment of the followers. Besides empowerment, he appears to have employed path-goal theory for motivation.

From the General Electric’s success during the tenure of Jack Welch, it is highly evident that his moral leadership level is highly effective for the firm to attain its goals (David & Donald, 2008). He did not concentrate on the management of the employees but rather, he majored on empowering the workers more thereby making the followers to be self-responsible, something that generally made him to be a steward leader. He did not control the followers, rather he defined meaning, as well as purpose for the followers to make them have the capacity to get to very high success levels.

It is important to note that there was some indication about the motivation of Jack welch which is not necessary authentic. It has been argued that jack when the bureaucratic nature of a large corporation like GE began to grate on Welch, particularly the standardized raises for all first-year employees, he tried to quit. However, Gutoff convinced him to stay on by offering him a larger raise and promised management positions in the future (Beattie, n.d).