Table of Contents

Q1. What is transformational leadership? How is it different from transactional and charismatic leadership? 2
Q2 How can organizations select and develop effective leaders? 2
Q3 Describe the factors that create and sustain an organisation's culture. 3
Q4. How is culture transmitted to employees? 4
Case Incident 1. 5
1. Would you rate Maurice Lèvy as a charismatic or transformational leader? 5
2. Which parts of the interview give us insights into defining his leadership. 5
3. Do you think Lèvy has developed the trust of his employees? How? 5
4. Do you think Lèvy would be as successful in another industry? In another country? 5
Case Incident 2 6
1. What were Google and P&G trying to achieve by swapping employees? 6
2. What did they learn from each other? 6
3. Do you think this method would be effective in changing a company’s culture? Why or why not? 6
4. What risks could there be with this approach? 7
5. Do you think Google employees would want to work at P&G? Would P&G employees want to work at Google? Explain your answer. 7
References: 8

Q1. What is transformational leadership? How is it different from transactional and charismatic leadership?

The goal of a transformational leader is to change the people and organization to better adjust into a new situation through implementing fresh concepts and broadening knowledge on wanted factors. Transformational leadership thus transforms organizational culture to ensure effectiveness in order to create growth and benefit the corporation (Homrig M, 2001). Simply put transformational leader identifies the company’s need to “transform”, creates a vision which then gets formed to a strategy and implemented with commitment. A transformational leader must have charisma, self-confidence, vision and intuition to reach the employees on emotional level and create an urgency to change the organization. Therefore a transformational leader must be able to take risk and combine tough decisions with strong internal values on the decided path to fulfill the mission statement. In implementation of anything new the leader must enjoy great trust from the organization to be able to push through even the hardest decisions and still unite the people to give their best in work. Transformational leadership differs from transactional in emphasis on subordinates. Transactional leaders motivate their employees to achieve certain goals by giving rewards or punishments in accordance with their performance, whereas transactional leader looks to create creativity and job satisfaction throughout the organization. Transactional leadership can thus be more useful in environments where low creativity but diligence in actions is needed, whereas managers with for example marketing tasks have to be innovative and therefore would greatly benefit from transactional leadership. Charismatic leaders on the other hand have vision and are willing to go after even great risks to achieve their goal, much like transformational leaders but whereas transformational leaders encourage their subordinates to look beyond self-interest charismatic leaders often pursue after their own vision which is not always in the best interest of the organization. A charismatic leader resembles the transformational leader in their will to inspire through enthusiasm their employees and energize to move forward, thus creating an enormous benefit to the organization. Charismatic leadership though carries more responsibility than transformational since it has a greater influence to charm people and needs a long-term commitment from the manager
Q2 How can organizations select and develop effective leaders?

Effectiveness is defined as the degree to which something is successful in producing a desired result; success. This in mind a leader doesn’t have to be highly educated to be effective. Certain job positions require less background knowledge as others but still their leaders have the ability to