Critically evaluate and discuss two leadership models then apply those models to two known public leaders that work in organisations.

This answer will explore the nature of organisational behaviour, which describes the structure and management of organisations, their environments and interactions between members (Heath & Sitkin, 2001). In order to critically evaluate the leadership models, leadership will be defined as “the process of influencing the activities of an organised group in its efforts toward goal-setting and goal achievement” (Huczynski & Buchanan, 2013). Transformational leadership, introduced by Burns (1978), has links with charismatic leadership (Mullins, 2005). The theory is based upon the ‘Four I’s’: idealized influence, inspirational motivation, intellectual stimulation and individualised consideration. A leader of this style is often viewed as a role model, with aims to inspire and motivate their followers to identify with the organisation. The transformational approach focuses on the leader encouraging individuals to take ownership of projects in order to get them to believe in their own personal effectiveness. This, in turn, leads to the whole team being motivated towards a ‘vision’, which can increase morale, performance and consequently, output. As indicated by the title of the model, the aim of such leaders is to ‘transform’, rather than just manage, the organisation. One flaw in the theory is that the ‘Four I’s’ are not sufficiently distinctive to separate this theory from others. Furthermore, the theory has been criticised for being elitist, whilst also overemphasising ‘heroic’ aspects of leadership (Northouse, 2007). To conclude the critique, transformation leadership theory has successfully synthesised aspects of other theories and has provided a modernised approach to explaining complex organisational behaviours (Huczynski & Buchanan, 2013).In contrast, the transformation model of leadership can be applied to Anne Mulcahy, former CEO of Xerox. Although Mulcahy also holds some traits of a transactional leader, driving the business forward by eliminating 28,000 jobs (US News, 2008); she stayed true to her values throughout the business turn-around, stating “employees are a company’s greatest asset – they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company’s mission” (Derivan, 2003). When Anne Mulcahy faced a financial crisis she took consideration of her team’s decisions in order to, as she states, “challenge ideas…with new perspectives” and made an effective choice to resolve a complex problem (Taking Stock, 2013). Moreover, Mulcahy went to the top one hundred executives and personally discussed the situation before coming to a decision and by doing so maintained the commitment of 98 of the executives (Mattone, 2013). Mulcahy emphasises the importance of ideas from employees with a “diversity of experiences” and states “if you spend as much time listening as talking, that’s time well spent” (US News, 2008). This suggests the whole team were involved in her ‘vision’ to transform the business from near bankruptcy to a success. It may have been the involvement in these crucial business plans that led to the success of the company, as employees felt they had part-ownership of the plans, in turn increasing motivation and commitment to the turn-around. A true transformational leader; Mulcahy states "companies disappear because they can't reinvent themselves" (US News, 2008).