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TRANSFORMATIONAL LEADERSHIP

M. R. Balakrishnan

Life Insurance Corporation of India

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Definition 1

Transformational leadership is a leadership

style where one or more persons engage

with others in such a way that leaders andfollowers raise one another to higher levels

of motivation and morality

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Definition 2

According to Tracey and Hinkin (1998),

transformational leadership is a process that

motivates people by appealing to higher ideas

and moral values, defining and articulating a

vision of the future and forming a base of

credibility

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Intellectual Stimulation- Stimulating followers to be creative and innovative

- Challenging their own beliefs and valuing those of leader and

organization

- Supporting followers to try new approaches

develop innovative ways of dealing with organization issues

Individualized Consideration- Listening carefully to the needs of followers

- Acting as coaches to assist followers in becoming fully actualized

- Helping followers grow through personal challenges

The 4 Is In Being Transformational

Alliance for Children and Families

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Four Key Elements of Transformational

LeadershipThe Four Is:

Idealized influence

Inspirational motivation

Intellectual stimulation

Individualized consideration (Joanne Ciulla)

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Process - TL is a process that changes and transforms individuals

Influence - TL involves an exceptional form of influence that moves

followers to accomplish more than what is usually expected

Core elements- TL is concerned with emotions, values, ethics, standards, and

long-term goals

Encompassing approachTL describes a wide range of leadership influence

where followers and leaders are bound together in the transformation process

Transformational Leadership (TL)

Description

Alliance for Children and Families

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Types of Leadership Defined

TRANSACTIONAL

Focuses on the

exchanges

that occur

between leaders

and their

followers

TRANSFORMATIONAL

Process of

engaging with others

to create a

connection thatincreases

motivation and

morality in both the

leader and thefollower

Focuses on

the

leaders

own interests

rather than the

interests of

their followers

PSEUDOTRANSFORMATIONAL

Alliance for Children and Families

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Fact Of the Case

The Tanjore Division of LIC, South Zone wasbiggest in the Zone in geographical area and interms of number of branches.

Strong and militant trade union who had astrong hold over the staff

Inter-group rivalries in many branches

between a caste based association andmajority staff union affecting the customerservice area also

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Viewpoint: Shri B.K, Senior Divisional Manager

of Tanjore Division of LIC

Straight forward and uncompromising on

issues

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Action Taken

The new software platform was implemented in theproblem branch also without the consent of the majoritytrade union.

Meetings inputs were given to BMs to build their

confidence. In consultation with the DOs union the annual gala meetingof all DOs with momentoes was stopped and a training forskill development was arranged using the same budget

Regular Trainning session arranged

Division achieved highest rank in new business premiumgrowth in the Zone and 2nd highest All India

Notices were distributed exposing the nefarious designs ofthe DOs in maligning their own companys product.( ULIP)

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Disciplinary action was initiated against DOs in 24cases for malpractices in new business resultingin early claim, disobedience, non-performance

and indiscipline. By August 2005 more than 30 agents were also

terminated for new business malpractices or foractivities detrimental to the organizational

interest. By September 2005 four more showcause notices were issued to DOs for removalfrom service., New ZM was softer

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Whether the Division would have reached the

number of policies target and if so how ?

It was clear from the profile of Shri B.K. that he would not buckleunder pressure and he was willing to take up the challenges of theposition despite his health problem. In fact BK started a whirlwindtour of the Division addressing three to five meetings each day with

agents, DOs and staff starting from 8.00 am to 8 pm and hopingfrom branch to branch. He explained to them the opportunityavailable in the form of the Golden Jubilee product and the hugemarket potential and how they would lose if they did not encashthe opportunity. He also narrated why he started the whirlwindtour when he should have actually taken rest. This gesture moved a

large part of the audience and became a morale booster. He alsokept the disciplinary proceedings in abeyance for strategic reason.

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When results were compiled at the end of the year it was a great surpriseto all including BKs colleagues themselves and particularly the ZM asnever in the history of the Division there was 38% achievement in numberof policies March alone. Not only that the premium target was achievedseparately for linked and non linked, single and non single separately andon composite basis but also crossed the number of policies target. This

was a rare achievement for any Division.

Apart from new business, on all other key result areas also the Divisionperformed well achieving total premium targets, nil outstanding ratio inclaims, submitting quality final accounts in time etc. The most remarkableachievement of the three year period was that the early claim ratio had

fallen from 23% in 2002-03 to 18% in 2005-06. The new business premiumincreased from Rs. 56 crores to Rs. 240 crores during the same period.Disciplinary action was also completed after the closing.

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Whether the strategies and actions of Shri B.K., the SDM were correct

and how the situation could have been handled differently.

Depending on the individuals personality

traits and values different methods can be

adopted to reach similar result. Training,

counseling, and helpful attitude is one such

method.

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Whether role of the Zonal Manager was appropriate in this case and if

so why ? If not what he should have actually done.

Role of the Zonal Manager should have been

better if the SDM was supported wherever he

was legally and morally correct and any

agitation should have been firmly handled.

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Why the Marketing Manager behaved the way he did and how the

SDM would have handled the situation to minimize the negative

impact.

Marketing Manager would have nursed a

grouse against the SDM as his ego would not

have been satisfied or SDM would have

checkmated his wilful designs earlier. Now in

SDMs absence he got the opportunity. As the

target was reached despite the backstabbing

by the Marketing Manager and even afterignoring the MM, the message was loud and

clear for one and all.