Transformational leadership in its leadership style has effectively built trust between employees and management and this usually lead to a smooth and pleasant working relationship that does not give room to suspicion in case of any change in policy or organisational change. Employees trust the leadership and they in turn are committed and loyal to the organisation. The employee is in a perfect emotional state of mind, since there is no fear of unknown or any need to panic. However, the trust sometimes could lead to exploitation since leadership knows that employees so rely on every of their judgement this but its been argued that the integrity of the transformational is to ensure the individual development of the employees. This leadership cares and is concerned about the employees and also inputs the company’s value in the mind’s of employee and constantly reminds them of the vision and goal to the realization of a high performance.
The leadership that gives attention to individual consideration is able to identify each individual strength and weakness and of course will be able to train and develop them without compares’ but handle them based on each person’s capacity (the leadership give some employees more encouragement, some are more empowered, some more firm standards, and others possible more task structure according to their capability and needs). This leadership style improves the employee well-being psychologically since the employee is treated uniquely and not measured by the others standard or ability, it gives an employee sense of acceptance and is uniquely assessed and assisted where necessary. Employee is psychologically, emotionally and intellectually motivated to perform without fear of others is better, here employees are treated as ends and not just means. The more capable that leadership is able to recognize the personal interests and concerns of individual employee, the very likely leadership will be able to create a team where employee well-being is an integral part of getting the job done.
In a scenario where an employee under performs an emotional intelligent leadership like the transformational leadership is quick to observe that something could be wrong instead of criticizing, that leadership initiate a good relationship by communicating with the employee to know what the problem is. By so doing the employee is mentally, socially and psychologically restored, and of course performance will improve, resulting to organisational profitability. Thus, it is of necessity to reiterate that the well-being of employee goes a great way in affecting performance and in turn the organisation’s as a whole.
The effect of intellectual stimulation on employee well-being cannot be overly emphasized. Employee is allowed to think independently, given room to be creative and allowed to do things in their own unique way which improves employee mental state of well-being. Generally speaking when there are strong relationships like that of a transformational leadership, between employees and line managers to the top managers and management as a whole, levels of well-being are enhanced. The level of performance will also be immeasurably excellent and the organisational goal is realised.
One major effect of transformational leadership style is that it perfectly erodes power distance via the leadership style of delegation which gives employee a measure of autonomy to take decisions on the task delegated to be implemented. The leadership style encourages low power distance and create room for accountability and in over all gives opportunity for employees to be self efficient and of course an avenue to learn. Employees are to an extent empowered under this leadership and of course will feel valued and important, this feeling improve employees’ intellectual and psychological state, a feeling of empowerment and importance is essential for a positive psychological well-being. The leadership foster team work allowing every employee to participate and enhancing good relationship to the realization of self efficacy and high performance.