The aim of this paper is to critique regarding the two theories and how they can be applied to organisational practices, for this purpose transformational and expectancy theory is chosen. literature review is done in order to analyse the how these two theories can be applied to an organisational context. The findings of the research indicates that it is essential to meet the employee needs and value their inputs, whereas management of the company should utilize the reward system which can be closely related to the employee performance and the awards can be based on intrinsic and extrinsic motivations as through empowering the employees one can apply transformational leadership skills within the organisation. Hence it is recommended to the organisations that they must try to adapt to the transformation and expectancy theory in order change the way in which things took place within the organisation. As the intrinsic and extrinsic motivation are necessary to motivate the employee it is essential for the organisation to provide the employee with both form of motivation depending on which they seems to give their best outcomes.
Organisational Behaviour Theories
The two of the most noteworthy organisation theories which can be effectively applied to organisational practices and considered as the core of leadership and motivational theories are transformational leadership theory and expectancy theory. Transformation leadership theory has many benefits but it also comes along with some critical issues for the organisation which can relate to the attitude, culture and behaviour within the organisation as these issues are rooted in the core depth and sometimes it becomes hard to pinpoint them without having a deep analysis on it. whereas Expectancy theory is one of the most influential motivational theories mainly due to the fact that it treats internal as well as situational forces by assuming that every individual is capable and rational .The aim of this paper is to critique regarding the two theories and how they can be applied to organisational practices.
Transformational Leadership Theory
Critically analysing the transformational leadership theory, it can be termed as one of the most noteworthy management styles as it has the added potential to empower the organisational workforce so that they can perform more of what is expected of them (Lussier, and Achua, 2015). Looking at the things from an organisational perspective, in order to be a successful leader or a manager one needs to have a sound understanding of project management, employee management, monitoring performances and organisational skills, but it is not always necessary that those who have a sound grip on all these skills are necessary to become a transformational leader. As all these skills are considered as the base through which the transformational leader can become effective (Paarlberg and Lavigna, 2010).
Moving forward, leadership skills are something that is inherent in an individual and they are born with it whereas some people need to develop leadership skills. As there are many examples of charismatic leaders who motivate the people and have their own ways of doing it, they inspire people and instil felling in them regarding the accountability and if either one fails it will be a failure of all (Morrison, 2014). From the past, it can be seen that all the great leaders bring positive change for the organisation as well as for the employees they are working with, the energy which the leaders had influenced the employees and thus it fuels unity among the team member which enable them to work as a force (Birasnav, Rangnekar and Dalpati, 2011).
The concept of transformational leadership was created by James Burns in the year 1978, as he was considered as a leadership expert and his main focus was towards the improvement of principles and procedures related to management (Berkovich, 2016). Burn quoted “One needs to have a solid understanding of the organisational goals so those goals can be implemented properly. Furthermore, transformational leader needs to be equipped with the appropriate methods which help them to achieve those goals (Burns, 1998).
Generally, transformational leaders are supposed to be charismatic, optimistic, visionary, enthusiastic and passionate which give them the ability to bring change within the organisation. If all these traits spread among the workers, they can bring a drastic change which enables the process of transformation to be fast and effective (Burns, 2004).
For a person to be transformative they must need to have diversifying thoughts furthermore they need to make sure the stakeholders of the company are taken into confidence before making any critical decision instead of indulging in the team members just (Aga, Noorderhaven and Vallejo, 2016).
A transformational leader needs to take into consideration the views of peers as well as the views of stakeholders in order to make sure that their needs are adequately met. A transformational leader needs to find those people who have a different perspective and can contribute in the betterment of any organisation, as people with a different opinion can give new ideas furthermore a leader is one who constantly looks for experts in achieving goals (Turnnidge and Côté, 2018). To go deep into the things as assessing it from different perspective while critically analysing the transformational leadership and its impact on the organisational practice one can easily say that a transformational leader needs to be strategic from the perspective of setting organisational objective and planning as a leader should be the one who can be seen as a strong communicator to which people can trust and follow blindly (Masa’deh, Obeidat and Tarhini, 2016).
A transformational leader is considered as one who can instantly able to change things radically which of course cannot always be possible, whereas for others transformational leadership is considered as a mentor which coach the workforce through motivation and empowerment, a transformational leader can be a role model and it can only be done through understanding the people at individual level (Song, Kolb, Lee and Kim, 2012).
As per the understanding from the different perspective of people on the transformational leadership, it can be said that transformational leadership helps in mobilizing the individuals in order to achieve a common organisational goal (Dvir, Eden, Avolio and Shamir, 2015).As it is very essential for the leader to be able to create such a place where the individuals can converse and raise their idea; furthermore, it can also be said that ethics, integrity, and morality are a significant factor behind transformational leadership as in order to build a trust a transformational leader needs time and it can only be achieved in the long term (McCleskey, 2014).
Analysing further it can be critically reviewed that transformational leaders are the one who challenges status quo at every step through asking questions as they develop such an environment where it is safe to converse, raise voices and show creativity without the sense of failure thus a place is created where the entire team can feel valuable (Northouse, 2018). Managers who have an appropriate command-and-control style of leadership can accomplish success in the short term but cannot be able to maintain it in the long run, a better leadership approach could be to guide the team in difficult paths but let them alone solve the problems. It is one of the golden rules that a leader needs to treat people in the way in which they want to be treated instead of treating them in a way how a leader wants themselves to be treated, as each individual is different from each other what motivates them is their ability through one can distinguish them from others employees, hence a leader needs to adapt to such style which helps them in accommodating the skills (Birasnav, 2014).
One might not always be needed to be a boss in order to become a transformational leader anyone can be a transformational leader thus it’s all driven by the scale and is all contextual (Miner, 2015).
A practical example of Transformational Leadership Theory
In 1962 an electric data system was launched by H. Ross Perot which aims to repair and build the computer system, previously he was associated with IBM instead of taking forward the experience and what he learnt from IBM as a salesperson he chooses to do thing in a different manner through empowering employees so that they can EDS’s satisfy the clients without having to take the prior approval from the supervisor. Perot very early realises the fact that customer can only be pleased if the authority is given to rank and file employees to make smart decision them self without any delay which arises due to the pending approval from the middle-level management. The top-down strategic planning was the main hurdle in making a decision in a prompt and quick manner.
Vroom’s Expectancy theory
Expectancy theory is one of the most influential motivational theories mainly due to the fact that it treats internal as well as situational forces by assuming that every individual is capable and rational (Yeheyis et al., 2016). Further, behaviours are the result of a combination of forces which the people make decisions independently for subjective reasons and such differences can be studied. Hence decision-making process of an individual is based on their perception of reward that is likely to be given to them (Chiang and Jang, 2008).
Critically evaluating the expectancy theory shows that it has three major concepts. Firstly, it is the performance which gives the outcomes and indicates to the belief that behaviour will likely to lead the outcomes, secondly its the valence which indicates the subjective worth and thirdly it is the effort performance expectancy which is one’s beliefs that effort level will lead to outcomes (Renko, Kroeck and Bullough, 2012).
Expectancy theory can be explained from an example: A manager of sales force who was working for the last 12 years and is responsible for monitoring sales growth. He managed to maintain sales goals as his region has won national awards. Third party vendor is the one which has created the stretch goals with the utilisation of complex algorithm which sales representatives cannot modify by any mean hence now they cannot control their performance outcomes (Hall, Frink and Buckley, 2017).Often the sales goals are set to 130% or above as compared to the previous year’s which results in demotivation among them, as the sales representatives hope for an increase in sales goals in the third quarter so that the team can improve their standings before the year-end. As described by the effort-performance aspect of expectancy theory, some of the sales representatives cannot exert enough of an effort in order to yield the desired sales outcome (Baciu, 2018).
Any value can be assumed through expectancy theory and when it is multiplied by zero will result in zero motivation and unfortunately, it was true for many years for many of those sales representatives. Possibly the sales representatives needed to adopt expectancy theory in their management tactics (Parijat and Bagga, 2014). Expectancy theory drives values for managers due to its predictive validity and respects of subjective difference of the direct reports could easily be applied to the SMART goals in order to have performance outcomes and previous which can directly be linked to the reward system and hence is simple to adopt especially when in case the manager ask its employee regarding the things which motivate them (Chen, Gupta and Hoshower, 2006).
Critically evaluating the value of the expectancy theory that it gives to the organisation, it can be seen that it has noteworthy value mainly due to the fact that performance outcomes are tied to the compensation and reward system as its acknowledged group influence with several membership needs (Miner, 2015). Expectancy theory operates on the basis that every individual employee put an effort in order to perform well and to earn a reward from the organisation; hence, if the management wants its employee to put a certain amount of efforts, they clearly need to set up an appropriate reward structure where the goals are clearly defined along with a certain evaluation structure. The employee should always take exact measures they need to take in order to reach a required level of performance. The effort that is required to reach the goals can be challenging but quite possible (Miner, 2015).
Further evaluating the recruitment and selection process of a company as recruitment and selection is considered as the initial stage in the employment relationship. The human resources managers should develop such a strategy which can attract the potential applicants having right expertise and qualification which can interest the firm needs. Corporate leadership along with the human resource managers should adopt such approaches so that they can recruit the qualified pool of applicants (Hsu, Shinnar and Powell, 2014). As a result, that recruiter who builds in-house job postings to do in a manner which can generate interest among the existing workforce. It is one of an example of expectancy theory mainly due to the fact that promoting an employee from within is considered as a policy which can help in supporting the retention efforts of employees (Kiatkawsin and Han,2017).It is the responsibility of the recruiters to select such candidates that are qualified and likely to maintain a long-term relationship with the company. Hence the primary goal is to meet the corporate leadership and human resource expectation as the success is entirely based on the ability of the recruiter to find well qualified and appropriate candidate which can be promoted from the existing group of employees (Lloyd and Mertens, 2018).
Interviewees study about the company and further show their skills level in an attempt to impress the hiring managers on the other hand interviewers prepare different questions in order to determine the candidate capabilities and how they will respond to different conditions at the workplace. Hence the question is based on the response type they want in order to extract the best candidate which as a result makes the hiring process rational (Lazaroiu, 2015).
Employees generally based their work quality in an anticipation to get a positive response from the employers. This can be in form of positive performance appraisal or it can be a better work assignment (Barba-Sánchez and Atienza-Sahuquillo, 2017). For instance, an IT expert who makes improvement in the company software expects that the company in return will reward him in form of a bonus, as the quality of work is directly related to the response level which the employee expects in return of the efforts that have been put by him into a specific task (Guest, 2011).
Many Scholars linked expectancy theory with extrinsic motivation mainly due to the fact that in both cases, the reason for the employee engagement in any action related to the company is mainly due to getting the desired outcomes (Ballard et al., 2016). Contrasting between the two concepts extrinsic motivations is considered as an underlying reason for the employee to perform the job whereas expectancy theory is not the only reason for the employee to do the job; rather it is considered as a basis due to which employee perform a particular job. For example, the extrinsic motivation behind coming to office and completing the assigned task is to get a regular pay whereas expectancy theory explains the reason behind employee behaviour i.e. why they are attending office regularly and producing high-quality work (Beckmann and Heckhausen, 2018).
A Practical example of Expectancy theory
In order to motivate employees and to achieve SMART goals at the workplace, Apple Inc. utilises the expectation theory. as employees are needed to enhance their performance level in order to get rewards. This approach of Apple seems to be idealistic as most of the employees perceive that performance and rewards are highly correlated with each other.
Conclusion and Recommendations
If the organisations hire transformational leadership experts then there is every chance that the organisations might find a cost-effective strategy. Some of the situation in which an organisation can consider applying transformational leadership includes.
- The organisation in which change is encouraged.
- A group member can work autonomously.
- Group member has higher needs.
- When the organisations considered ideas as more important than the organisation process.
So, it is recommended that the organisations must try to adapt to the transformation leadership style in order to have changed in the way the things took place within the organisation. As the intrinsic and extrinsic motivation are necessary to motivate the employee it is essential for the organisation to provide the employee with both form of motivation depending on which they seems to give their best outcomes. The organisation can do so through challenging the employees in a positive way give them the ability to choose between the different work type and provide them with advancement opportunities, further more through regular feedback and training and allow them to participate in the decision making process can increase the intrinsic motivation. whereas on the other hand extrinsic motivation can be given through can be given through giving awards and recognition to the employees for their work.
Furthermore, there are many suggestions for the company to improve their employee motivation system and it can only be done through making improvement in the leadership qualities as it is the responsibility of a leader to pay attention to employees and communicate them in an effective manner, in addition to that leader is also responsible to keep employee updated regarding relevant management skills. Providing the fair promotion opportunities for the individual employees and the promotion should be based on performance rather than on personal preference. Furthermore, an employee training program should be built, which can provide opportunities to employees to develop themselves and finally leader should combine the basic and supplementary welfare together in order to attract the new and retain the current employees.
The two organisational behaviour theories that are chosen for the paper are transformational leadership theory and expectancy theory and a critical analysis is done on how both these theories can be applied in an organisation practice. Through empowering the employees one can apply transformational leadership skills within the organisation and further through pushing the team in their comfort zone, it can only be achieved through having a transparent process where everyone is accountable from top to lower level management. In the end, it is essential to meet the employee needs and value their inputs, whereas management of the company should utilize the reward system which can be closely related to the employee performance hence they need to ensure that rewards which are provided should be to the deserving candidates which are described by the expectation theory.
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