Lately, fundamental transformations in organizational and resource

strategies have greatly influenced economic activities. Firms today employ

more intellectuals that can accomplish more intellectual tasks. In the
21stcentury leaders face the challenge of being effective in a global
knowledge environment. Leaders must play the key role in helping
organizations cope with the challenges they face from expanding
knowledge and knowledge systems.

Knowledge is action,

focused

innovation, pooled expertise, special relationships and alliances.

Great advances in technology have brought a dramatic increase in
e-learning. As a result, education has become more techno-centric, but in
the leadership class there must always be a realization that the
technology is secondary to the human interaction. As knowledge acquires
importance in organizations, employees must manage it as a source of
value creation and competitiveness
With the shift to team-based knowledge work, Leaders must inspire
their organization to meet the requirements. It is not the members'
knowledge in itself that is strategically vital, but the presence of good
leadership to enable the organization to integrate, share and use this
knowledge innovatively. The leader's characteristics and leadership style
are

key

determinants

of

innovative

conduct

in

organizations.

Transformational leadership emphasizes the importance of developing the

abilities of the organization's members and exploiting the tacit knowledge
in all employees. Transformational leaders are better suited to handle even
the most technical aspects of the modern workplace than are transactional
or laissez-faire leaders. The primary reason for technological change
failure was fear. The role of transformational leaders was to reform fear
into motivation .
As an idea, transformational leadership was first mentioned in 1973,
in the sociological study conducted by the author Downton, J. V., "Rebel
Leadership: Commitment and Charisma in the revolutionary process,
after which many researchers elaborate on this concept. At the core of
transformational leadership is the concept of transformation, or change of
the organization. Burns (1978) defined transformational leadership as a
process in which "leaders and followers raise one another to higher levels
of morality and motivation". According to Burns, a leader that is focused
on needs will be more responsible towards his members.

The Transformational Leadership Model:

1. Inspirational: The foundation of transformational leadership is the
promotion of consistent vision, mission, and a set of values to the
members.

Transformational

Leaders

guide

their

followers

through

challenges and a sense of meaning.

2. Intellectual: Transformational leaders encourage their followers to be
more innovative and creative. They advocate new ideas and dont publicly
scold a follower. Transformational leaders focus on solving a problem
rather than blaming the person who caused it.
3. Idealized Influence. Transformational leaders believe that inspiring their
followers can only be possible by practicing what they preach. These
leaders act like role models that their followers would imitate. They will
typically also put the followers needs above their personal needs.
4. Individualized Consideration. Leaders act as mentors to their followers
and reward them for creativity and innovation. Each follower is treated
differently according to their talents and knowledge. They are empowered
to make decisions and are always provided with the needed support to
implement their decisions
Leaders are crucial to the process of creating cultures, systems and
structures that foster the absorption, assimilation and application of
knowledge.. Transformational leadership can make organizations more
effective by stimulating absorptive capacity. Transformational leaders
stimulate transfers of explicit and tacit knowledge in individuals and in the
organization. They are instrumental in creating a climate that stimulates
the disciplines of organizational learning and their interaction.
This style of education allows the company to learn through
experimentation, communication, dialogic individual mastery. It also
fosters the creation of organizational knowledge. In that sense, leaders are
the catalyst, mentor, facilitator and trainer for organizational learning. It is
done through the motivational empowerment of employees. They provide
information, responsibilities, skills and competences to the workers in
order

to

run

the

company

smoothly

through

improved

internal

communication. Transformational leadership inspires the creation and

sharing of knowledge among workers. Finally, transformational leadership
affects innovative behavior positively, which is why it is very important for

the leaders to have a consistent view of the organization's innovative

culture.
CONCLUSION
Organizations have realized that the competitive advantages of
technology are temporary and the only competitive advantages that are
durable are their employees. The main forces of change that include
globalization, higher degree of complexity, modern technology, increasing
competition have make it inevitable that managers have to focus more on
management knowledge.
In todays stiff competition, organization must have appropriate
capacity for perseverance, development; organizing and productivity from
the merits of their employees. Transformational Leaders have great
potential to affect their employees perceptions of human resources
benefits. Transformational Leaders also have huge potential in these
benefits through involving them in the knowledge management process,
establishing organizational culture, and encouraging communication
among employees. In sum, qualities of transformational leadership is
essential to transformational management. It is also crucial for the
successful management of organizational knowledge and changes
LESSON LEARNED
By being familiar with transformational leadership, organizations
gain a benefit in the form of insight; that is to not think too highly of
technology as a source of competitive advantage and to realize that it is
far more important to maximize the potentials of the employees. Its
because the fact that employees, if managed correctly, are a corporations
biggest asset. In addition to that, I have also learned that leaders play a
great role in the performance of their subordinates, so in order to grow, a
company needs a leader with transformational traits.