Natia Surmanidze

PhD in Economics

The University of Georgia

Research Fellow, Associate Professor

Tbilisi, Georgia

ORCID: https://orcid.org/0000-0003-2116-6571

n.surmanidze@ug.edu.ge

The Role and Challenges of Transformational Leadership in Key Organizational Disciplines in the 21st Century Working Environment

Abstract

The working environment of the 21st century has changed significantly compared to the 20th century. Constant change has already become characteristic of the modern workspace, which can be related to technological development, political and economic realities around the country, the number of competitors and their daily moves, the creation of new products and services, or the improvement of existing ones, changes in consumer behavior, and so on.

In order to deal with complex situations caused by unplanned and often uncontrollable changes, business representatives need employees who can adapt to challenging environmental conditions in a short time. On the other hand, the latter includes evaluating and analyzing the problematic issue from different sides, developing effective alternatives to overcome the difficulty, and their timely implementation. As a rule, the mentioned adjustment cycles in business entities involve teams whose members share responsibilities and work together to maintain and improve the successful course of the business.

 

In order for an employee to fully handle the daily activities of the business, first of all, he should be well aware of the values and long-term vision of the employing company. On the other hand, the employee should have an increased sense of self-motivation and self-confidence to realize his work experience and skills at a critical time and help team members as much as possible in fulfilling the company's common goals.

In today's highly competitive work environment, where changes are constantly taking place, companies need to increase employees' motivation to perform their work and maximize their work potential to succeed. To achieve this goal, employees must have a good understanding and grasp of the business entity's long-term perspectives and strategic vision, and they must strive daily to reach the future target point.

Transformational leadership, a crucial element in the 21st-century working environment, ensures the alignment of the company's strategic goals and the career aspirations of employees. With outstanding personal qualities, teamwork, and work experience, a transformational leader inspires followers that with joint efforts they can achieve more in the workplace than the satisfaction of personal interests.

The constant rotation of the four main directions of transformational leadership significantly increases employees' work motivation. These dimensions are idealized influence, inspirational motivation, intellectual stimulation, and individual consideration.

The benefits of transformational leadership are far-reaching, extending beyond encouraging employee motivation. This type of leader has significant positive effects on various organizational disciplines, fostering organizational learning, team reflexivity, organizational change, job satisfaction, and empowerment.

The primary aim of this paper is to provide a comprehensive study and analysis of the role and challenges of transformational leadership in key organizational disciplines: organizational learning, team reflexivity, organizational change, job satisfaction, and empowerment.

The paper uses qualitative research in the form of an in-depth interview. The respondents are one of the leading companies operating in the modern Georgian market in the production and retail trade sectors.

Keywords: Transformational leadership; Human Capital; Organizational dynamics.