Leadership Assignment: Transformational Management &Leadership of Bill Gates & Elon Musk

Question

Task: Leadership Assignment Task: Project: The Leadership Styles Uses by Elon Reeve Musk & Bill Gates. Analyse these profiles based on the charismatic and a transformational leadership approach in the Digital Age.

Describe the main difference between a charismatic and a transformational leader. Analyse each profile of Elon Reeve Musk & Bill Gates in the Digital Age.

Develop the following elements:
• Charismatic Leadership approach
• Transformational Leadership
• The 4 Is of the Transformational leader
• How these styles are changing in the Digital Age

The 4 I’s of the transformational Leader
• Idealized influence
• Inspirational motivation
• Intellectual stimulation
• Individualized consideration

Answer

Introduction
The current report on leadership assignment revolves around the concept of Leadership which is a very unique ability that very few people have. It is more than being authoritative. It is the genius of an individual to have their influence over others and help others become better versions of themselves. Throughout centuries there have been many most outstanding leaders, and each has shown their strengths and capability. There are different leadership that has been developed through the ages, like autocratic- where the leader believes that they are the most competent person and their employees would do what they say. There is a democracy where the employee's opinions are taken into consideration before coming to a decision, and so on. In this report, however, we will discuss the charismatic leadership approach and the transformational approach. To explain the points in a better way, the discussion will draw examples from the leadership styles used by Bill Gates and Elon Musk. Further, the report will shed light on the four I's of transformational leadership and explain how they are evolving in the age of digitalization.

Charismatic Leadership
Charisma is a rare quality to help you get ahead at work or in your career. Elon Musk, for example, is a master of using this valuable trait to his advantage. He has proven that charisma is one of the most valuable qualities a person can have if they want to be a leader and change the world. Deeply passionate about his vision, Musk clarifies that working towards his vision of sustainable energy is the motivation behind all of his business endeavours. His ideas of innovation are changing the outlook of the world and the general perspective that we have.

While a good leader is someone who can get people to do what they want them to do, a great leader will only become an exceptional leader through the process of growing the individual giving him or her opportunities to accept the responsibility, which builds confidence and exposes him/her to new learning experiences. For example, Bill Gates has been recognized as an innovator and a charismatic leader by many generations. He is the co-founder and Chief engineer of Microsoft software, the world's leading personal computer software company (Shah and Mulla, 2013). A self-made billionaire, he became a household name with his influence in shaping today's modern world. Bill Gates has had the most impact on our world through invention or innovation. Gates was always determined to be the first in his field in innovating products and bringing change.

Gates created the Windows system that has dominated the software industry for years. Even today, he continues to bring in innovative changes (Corte, 2020). The influence that he has over the world speaks volumes about his ability as a leader and decision-maker. Elon Musk on the other hand has a charisma that is larger than life. This helps him influence people around him towards a better future. He has founded multiple companies shaping the future of transportation, energy, and space exploration. He is ambitious and a naturally charismatic leader, with a positive outlook and optimism for the future (Vance, 2015).

Transformational Leadership
The contemporary business environment is characterized by dynamic, fast-paced organizational cultures that are prone to constant changes. The competitive nature of the modern business world necessitates organizations to be proactive rather than reactive in their leadership approach. Organizations need transformational leaders who possess outstanding skills in various leadership areas (Seijts and Gandz, 2018).

Microsoft believes in promoting the welfare of its employees (Raffo and Williams, 2018). Bill Gates was constantly training his employees on how they could better themselves while at work. Furthermore, to keep up with the technological changes in the industry, Gates sent some of his best brains to different parts of the world to look into technologies that can improve software development before he rolled out new programs for Microsoft. Gates built an outstanding reputation as a leader that knows how to offer a motivating and rewarding working environment. His portrayal of personal traits such as determination and pursuit of excellence gave birth to Microsoft's success. Gates proved to be a successful businessman and inspired people to work together and make contributions, which enabled the company to go up in miles (Raffo and Williams, 2018). Transformational leaders exercise their influence when they show that the goals, they set are attainable. They exercise influence by inspiring trust among members of their organizations and motivating these people to act in ways that elevate the interests of the business, even at the expense of personal gain. Bill Gates had foresight about the future of technology, more so than others. He demonstrated the vision through his software development company, Microsoft Corp., which transformed into a global leader in developing application software for personal computers. He was a transformational leader because he influenced his followers to be goal-oriented and share organizational goals and objectives.

An organization's culture is undoubtedly influenced by the leader within. The leader's personality, skills, working style, and personality play a vital role in determining the nature of the organization's culture. The effect of an organization's culture on its efficiency and productivity can be gauged by looking at measures such as absenteeism, labour turnover, employee engagement levels, and customer satisfaction (Reid, 2020). For example, the style of the leadership style of Elon Musk directly affects Tesla. Elon Musk is a strong leader who instils confidence in employees, producing at peak performance and completing corporate objectives. Elon Musk is a man with a mission. He's dedicated to improving the world we live in, and his Tesla Motors is almost single-handedly bringing change to an industry that has been stagnant for years (Reid, 2020). Musk's leadership behaviours follow the four strategies that are associated with a transformational leader. First, he motivated the spread of the electric vehicle concept by advocating for its benefits in various media interviews and on Twitter. He also allowed celebrities that support environmental causes to test drive the Tesla vehicle and then speak on its behalf. Second, Tesla has developed a team of sales representatives and financial advisors, and it even offers buyers a test drive before they decide to buy. Third, Musk simplified the car-buying process with its easily accessible system. Elon Musk believes that the success of a company depends on the acknowledgment of feedbacks. His willingness to accept feedback means he has the potential of becoming the kind of transformational leader organizations need to compete successfully in today’s global economy (Meador and Skerratt, 2020). Musk's efforts have helped him achieve great results. He supports people he works with, so they can achieve the best possible results. His optimistic outlook links progress to learning from failures. Elon Musk runs his companies is very similar to how he runs his life- in a constant quest for improvement.

Difference Between Transformational and Charismatic Leadership
Transformational leadership is a style of leadership that helps a person or a team fully embrace an organization's vision and values. It includes several steps, including taking action, leading change, focusing on the future instead of the present, motivating people, tapping into creativity, communicating effectively, recognizing individuals after they've made contributions, handling conflicts well - and much more (Hamdani, 2018). For example, during his time as the CEO of Microsoft, Bill Gates emphasized the importance of ethics and the worth of an individual employee to his company. To facilitate a healthy working relationship between employees, he arranged for them to work in teams. It reduced barriers between workers of varying levels and allowed them to unite more closely. This shows how good he is as a transformational leader. Charismatic leaders on the other hand are able to select the right people for the job, encouraging them to develop their skills. They can persuade others to take ownership of their jobs and improve performance, often working behind the scenes to bolster productivity and keep operations on track. They also tend to be great storytellers—finding ways to inspire through anecdotes, historical references, even jokes—and are thus able to build trust with their audiences. Elon Musk's passion for his vision- to make the world sustainable by transitioning the world to sustainable energy—is an integral part of making him a charismatic leader. His ability to communicate this vision to the world is well-recognized, not only in the business community but all around the globe (Maamoun, 2021).

Other Leadership styles and Transformational Leadership. Transformational leaders are successful leaders who inspire positive change, build teams of employees that strive to do their best, and create organizations whose mission is supported by all. Becoming a transformational leader requires a change in perspective and a purposeful and passionate leadership style (Khan, 2020). There is a common notion that alludes to the similarity between visionary leadership and transformational leadership. A visionary leader is more likely to be charismatic and is more likely to inspire change in his or her organization. A transformational leader is more interested in their follower's and subordinates' personal growth and development but can also be very charismatic. While they are almost similar, transactional leadership and transformational leadership are opposites. In a transactional leadership situation, the employees know what is expected to be rewarded and how they can benefit from a well-performed job (Tedlow, 2021). A transactional leadership style focuses on the individual and the individual worker to decide what would benefit them in a given situation. Benefits in a transformational leadership situation include motivation, unity, and direction.

The Four I’s of Transformational Leadership
The characteristics of transformational leadership are deeply rooted in the original ideas of James MacGregor Burns and Bernard M. Bass. They developed a theory that proposed the idea of the four I's of transformational leadership, which become its most definitive components.

The first is intellectual stimulation. Leaders at all levels must continuously evolve, adopt new behaviours, and challenge existing ones. Even the most innovative leaders often fall back on outdated mindsets and processes, despite their desire to innovate. They need help. Transformational leaders question the accepted norms and regulations which need to be changed (Sainger, 2021). They encourage their employees too to have the same kind of mindset. It leads them to open up to new ideas and experience new opportunities. A good example is Elon Musk. As an avid environmentalist and electric vehicle supporter, Musk took the initiative to convince others of the benefits of electric vehicles. Although he was criticized for this decision, it gained Tesla a larger consumer base and encouraged other companies to develop all-electric cars (Tedlow, 2021). A transformational leader does not set predetermined goals for individuals but bolsters their desire to make a difference with opportunities to grow and learn, encouraging employees to push harder and do better. This approach empowers individuals to put forth their best effort every time a goal is met because they see that hard work will result in more responsibility. Employees are empowered to find opportunities within the problems they encounter. They approach their work with a sense of excitement and enthusiasm (Sainger, 2021).

The second is individual consideration. People who follow their passion and apply their skills to a business that fits into a larger cultural picture often find themselves in the best position to lead. It takes a leader to unite these factors under one theme and direct it toward a common goal. Transformational leadership has an important role to play in motivating staff. It is also essential in helping employees recognize what makes them succeed personally and professionally (Khan, 2020). Bill Gates is a perfect example of this. He loved computer programming from a young age and focused on building his business around that passion. Transformational leadership is a style of leadership that primarily focuses on enabling the people who are led to maximize their full potential, challenging the status quo, providing opportunities for advancement, and supporting staff development. Gates was the chief initiator of what came to be known as the "Silicon Valley revolution", which brought significant gains in the computer industry. He quickly became the leader of the software world - his company, Microsoft, created an extremely popular operating system, advanced innumerable technologies and added tremendous value to the global economy. Transformational leaders work to develop positive relationships with their employees. They mentor and support their people, keep lines of communication open and attend to the needs of each individual (Khan, 2020).

The third is inspirational motivation. Leaders help employees see the connection between the unit's overall purpose and each individual's role in achieving that purpose. Leaders also challenge employees to go beyond their comfort zone and capitalize on innovative opportunities by thinking outside the box. Transformational leaders empower others to succeed by providing the tools and resources necessary to do their work. For example, Elon Musk and Bill Gates, both are dedicated to creating an environment that encourages sharing, listening, and openness to new ideas. Like transformational leaders they allow followers to take risks because they have defined success criteria, provide feedback when appropriate, and recognize the contribution of individuals and teams (Larson and DeChurch 2020). Transformational leaders transform an organization by creating a learning environment that enlightens and equips others to improve performance and reach goals. Transformational leaders help people learn, unlearn and relearn behaviours that support and enhance their ability to successfully navigate change and face new demands (Larson and DeChurch 2020).

The fourth is idealized influence. A transformational leader leads by example, walks the talk, and connects with their employees. This type of leader also helps employees reach their full potential by encouraging them to be innovative and think outside the box. Transformational leaders are enthusiastic about their company's goals. They stay connected to what is happening in the company and build positive relationships with clients and stakeholders. Idealized influence is a one-person leadership style that is positive, influential, and visionary (Reid, 2020). Leaders who have developed idealized influence can achieve their plan, even in the face of resistance or ambiguity. They are inspirational because they are forward-looking, are role models by the positive behaviours they model, have a constructive approach to solving problems, communicate effectively with all levels, and use vision as their primary tool for leadership. These leaders ask good questions, listen carefully to the responses, clarify the meaning of what is said, and show empathy.

Leadership in Digital Age
As the world is going through a significant economic change in this digital age, leaders' approach is also evolving. The digital economy is changing the way organizations are designed, built, and run. How organizations operate is radically different today than even just a few years ago. The most successful companies are moving beyond traditional rigid hierarchies toward more responsive perimeter architectures. With a radical shift from scarcity to abundance affecting global economies, businesses and leaders need to adopt a new leadership approach (Sun and Henderson, 2017). That is how inspiration leads to innovation. A world where every individual has a voice, a platform, and a community is just one of the many possibilities created by new technologies. Those with an open mind, willing to embrace change and create opportunities for others will thrive when technology advances. In the digital age, the idea to market is measured in minutes, not months (Geier, 2016).

Gates and Musk were the pioneers of the digital age. The software and technologies they created paved the way for the digitisation of the world. However, the world is changing and each of them has taken a different approach for the future. Gates is focusing on launching services that can help people develop programs and software whose application would not be limited to only one platform. This approach is the same one Gates took to build Microsoft. He was not wedded to any single hardware or operating system but instead worked to make software that could run on most computers (Sun and Henderson, 2017). Musk on the other is more ambitious and thinking of a much greater future ahead. Musk is at the vanguard of inventors who are striving to make science fiction real. The technology coming out of Musk's companies could be part of humanity's leap toward a radically better future. SpaceX, the rocket company he started in 2002, led by Musk's ambition to send humans to Mars; Tesla, which developed the batteries that power homes and businesses; and Neuralink, a neurotechnology start-up that aims to hook human brains onto computers are all part of this transformation (Tedlow, 2021).

It's a leader's job to help the team keep up with the pace of change and to push for better results. Skilled digital professionals will define their future and be part of the next generation of workers, who'll increasingly deal with human-machine interactions. It is what leadership ideas should aim at in this digital era, helping tomorrow's leaders embrace this change and prepare themselves to face challenges in the long run.

Conclusion
Concluding Points
Elon Musk is a unique talent of a man to influence others and help people be better versions of themselves. Elon Musk has been making history for over a decade with his companies, Tesla Motors and SpaceX. As an influential leader to his employees, he is able to help humanity be better versions of themselves. Analysing the report, it can be said that the leadership approach that Musk takes is a combination of charismatic, visionary and transformative leadership.

A great leader is always willing to be an active listener. An exceptional leader like Bill Gates can motivate others to do what they don't necessarily want to do or like to do. He harbours an intense desire to contribute that benefits their organization and the people within it. It can be concluded that Bill is a visionary and a transformative leader.

Reference
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