Introduction
The
twenty-first century has placed considerable emphasis on the need for effective
and dynamic leadership, given the role it plays in the success of
organizations. As a result, a majority of establishments tend to seek powerful
leaders due to the role that significant leadership attributes play in
ascertaining that responsibilities are undertaken in a manner that satisfies
the set standards. At the same time, the formation, as well as the development
of high functioning teams across organizations, does not often take place
overnight but requires the strength to overcome the challenges that are likely
to arise. It is further critical to note that the stages of team development
require routine guidance from leaders (Bai et al., 2019). The assertion hinges
on the fact that over the course of the establishment of teams, personalities
often intertwine because of various motivations and proficiencies. In as much
as all the teams are likely to experience the stages of team development, some
of the groups do not register organic progress. This results in failure and
their inability to realize their objectives routinely because they are not
often moulded into units that are high functioning. Consequently, it can be
argued that the failure of teams to realize their objectives can be hinged on
either the inability of the members to synchronize their input and lack of
adequate leadership.
Transformational
leadership denotes a leadership style where the leaders often inspire and
motivate their employees to innovate and bring about change that is critical in
the success of establishments. Transformational leadership is an essential
approach, given that it tends to motivate and inspire employees without any
form of micromanagement. The employees are often accorded the chance to be
creative and evaluate the future to the trust that they have earned and the
extent to which they have been empowered. The leaders who exhibit
transformational leadership attributes tend to often encourage positive
development and motivation among their followers while demonstrating the
projected moral standards (Hashmi et al., 2018). Similarly, the leaders who
demonstrate transformational leadership often contribute to the development of
an ethical environment where there are values and priorities. To stress the
need for authenticity, it is critical for transformational leaders to provide
mentoring and coaching services to their employees, thereby making sure that
they develop the competencies that are required for success in the industry.
In
Malaysia, as in other parts of the world, the financial industry has been
facing several challenges. The digitization of the financial sector, for
instance, was intended to solve problems. Nonetheless, it has brought about
several new challenges. For starters, data breaches in the financial sector
have risen by 480% from 2017 to 2019 (Bai et al., 2019). Given that each of the
attacks normally costs the financial institutions millions, it is critical for
innovative strategies to be employed to manage the rise in cybercrime. At the
same time, effective leadership is needed to make sure that employees are
competent enough to navigate the regulatory policies that are increasing in the
financial sector. The previous studies that have been undertaken on successful
teams have established that they are significantly different from the ones that
are less successful in terms of their behaviour and approach to issues.
Transformational leadership has been determined to significantly raise the
awareness of followers; thereby ascertaining that the expected outcomes are
achieved. The paper explores the impact of transformational leadership on team
dynamics in a financial institution in Malaysia. The paper submits that
transformational leadership often positively influences the motivation level of
employees of the financial institution, thereby enhancing team dynamics due to
their improved commitment to the objectives of the firm.
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