CASE STUDY: THE BANKING COMPANY (Please note that the case study is not a real
company situation.) Martin Sithole was promoted after 10 years of service in various
leadership positions to an executive position at ABC Bank. His promotion was, amongst
other factors, due to his strong confidence...
, Question 1
1.1
Martin Sithole applied the transformational leadership theory. This leadership theory
is focused on inspiring and motivating subordinates to exceed expectations through the
leader's vision and passion. Transformational leaders work to change and improve the
organization by encouraging innovation and creativity. They focus on developing and
empowering their team members, instilling a sense of purpose, and aiming for long-term
success.
In the case study, Martin's confidence, success in mergers, and his ability to drive his
subordinates to exceed targets show characteristics of transformational leadership. His
focus on setting a strong vision for the merger, albeit from a self-interest perspective, is
also aligned with the visionary component of transformational leadership.
1.2
Ethical Characteristics of Transformational Leadership:
1. Empowerment of Subordinates: Ethical transformational leaders encourage their
employees to grow and develop. In the case study, Martin trained his subordinates in
the standard operating procedures for mergers, which reflects an attempt to equip
them with relevant knowledge.
2. Inspirational Motivation: Ethical leaders inspire confidence, commitment, and
enthusiasm. Martin's strong confidence and his past success in mergers are
examples of how he inspired his team to exceed targets. Inspirational motivation
drives employees to contribute more effectively to organizational goals.
Unethical Characteristics of Transformational Leadership:
1. Self-Interest: Unethical transformational leaders may prioritize their own goals over
the needs of their employees. In this case, Martin dictated his vision for the merger
from a self-interest perspective without considering input from his subordinates. This
shows that he placed his personal objectives above the team’s or organization’s
collective interests.
2. Lack of Inclusivity: Martin failed to incorporate his team’s ideas in the planning
process, which points to a disregard for diversity in thought and contribution. The
complaints about the lack of value given to female subordinates’ input reflect a
failure to foster an inclusive environment.
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