The Theory of Authentic Leadership, Research Paper Example

Introduction

Corporate success relies on the kind of governance an organization adopts. Successful corporations have recognized leadership as an important part of the process. Good corporate leadership is a central determiner of defining strategic direction and achieving success in the corporate world. Many theories have been developed to explore the concept of leadership. Transformational and transactional theories are good examples that hypothesize the values of a good leader. While studies have recommended such theories, the Theory of authentic leadership has been regarded as a normative framework and a reaction against the “pseudo-transformation leaders” and other approaches that leaders have adopted and ended up committing unethical corporate practices.

Review of Literature and Theoretical Framing

Previous studies have provided diverse conceptualization concerning the Theory of authentic leadership. By large, leadership is a model that has undergone a paradigm shift from the classical approaches to the modern models that feature “transformational leaders” who “inspire” subordinates (Bryman et al.,2011). It entails working with people “to achieve personal and organizational goals” (Bryman et al.,2011). The authentic leadership model stems from such an understanding of which Jones & Grant (n.d) view as leaders developing self-awareness and communicating with their people. Gill et al. (2018) observe authentic leaders stem from authenticity, which refers to the alignment between external behaviors and the mental well-being of an individual. According to Gill et al. (2018) study, authentic leaders are “true to themselves.” Their study finds out that authentic leaders tend to be more aware of themselves and others. They are transparent with their subordinates which is key to corporate governance. They are guided by internal moral values and enhance balance processing. Such an understanding provides a foundation for understanding the authentic leadership theory.

Consequently, Chaudhary and Panda (2018) undertake research that examines whether and how the use of authentic leadership enhances employee creativity via safety, work engagement, and psychological meaningfulness. According to the findings, authentic leadership is central in building employee creativity via work engagement and psychological meaningfulness. Chaudhary & Panda (2018) understand an authentic leader as an individual with a behavioral leadership pattern that promotes positive psychological capacities and a moral climate to trigger relational transparency, balanced information processing, a higher  self-awareness, and internalized moral to enhance development (Chaudhary & Panda,2018).  The approach relates to transformational leaders that entails a leader working with subordinates to identify the required change, create a vision that inspires and motivates teams, and integrate changes with the teams that form the heart of corporate governance (Lai et al.,2020). Because of their interrelatedness, transformational leadership tenets are a fundamental model of understanding the Theory of authentic leadership.

Analysis

Theory Explained

Authentic leadership entails a leader being true to oneself. It stems from the term “authenticity,” which implies the idea of being real to oneself. It is a concept that requires one to have self-awareness and show the ability to act per one’s ideal true self. According to Johnson (2019), authentic leadership has a significant impact on the positive workforce indicators such as work performance, staff retention, and collaboration. The Theory applies humanistic and authentic principles with the conviction that being genuine results to more positive impacts that aids in achieving the corporate goals. The Theory cement that leaders have the independence to grow their leadership approaches as long as they maintain their personalities, and virtues (Johson,2019; Gardner et al.,2011). Towler (2019), argues that the theory emphasizes how leaders can obtain legitimacy and create trust by developing honesty and integrity with their followers. The Theory centers on the moral dimensions of the connection between the leader and their subordinates and relates such practices that result in a trusting relationship (Nichols & Erakovich,2013). Authentic leaders have “a positive outlook” towards life (Towler,2019). They are truthful and transparent with others and have developed the skill of building trust with their followers and generating great enthusiasm that leads to greater team performance (Bryman et al.,2011). Towler (2019) documents that the authentic leadership theory’s elements include relational transparency, a great moral awareness, balanced processing, and an “internalized ethical perspective.” Through the four models, organizations prioritize legitimacy and positive mental capacities, which results in success.

The Theory underpins what is commonly regarded as authentic leaders. The latter have values and work by aligning to those values without compromise. The values manifest themselves in the leader’s behavior with the self and with others (Northouse,2016). They value relationships with their subordinates and build connections to enable sharing of experiences to enhance performance. Also, they have a great level of self-discipline, which is showcased via their commitment to a great work ethic and achieving corporate goals. Having self-awareness enables them to understand themselves better and understand their impact subordinates, thus maintaining self-discipline for the goodness of the corporation (Northouse,2016). Their commitment parallels their sensitivity, compassion, and heart for the organization. They care about the well-being of their staff and incorporate them in key decisions. It is a form of servant leadership which they embody in corporate governance. They are kind, confident, respectful, hopeful, and work towards a cause that enables them to transform their followers into becoming authentic (Bryman et al.,2011). It explains why they share and celebrate success with the subordinates.

Conflict Conceptualization: Pseudo-Transformational Leaders

Authentic leadership theory has been conceptualized as a reaction against the “pseudo-transformational leaders. It becomes evident that there is an inherent conflict between the two types of leaders, hence the juxtaposition. According to Christie et al. (2011), Pseudo-transformational leaders embody behaviors that lack a connection and strong relationship with the employees. While they are inspiring, they are self-serving and unwilling to encourage autonomy and independent thought among employees. They have little or no caring for the employees and fail to show any emotional appeal to their employees. While authentic leaders are self-aware of how their leadership behavior can affect the employee’s motivation and performance, the pseudo-transformational do not care about the feelings of the other. Christie et al. (2011) explain that such assumptions of valuing corporate hierarchy over reason features in Pseudo-transformational leaders explain why they fail to value and include employees in decision-making. They often compromise corporate ethics. The assertion, therefore, establishes a conflict between the two forms of leadership, foregrounding their relationship as binary opposites. It justifies the rationale for examining the authentic Theory of leadership.

Case of Recent Scandals

Elizabeth Holmes scandal is one of the recent that reflects why authentic leadership theory deconstructs the “pseudo-transformational leaders.” She was a CEO of Theranos, a firm that had claimed to have the ability to diagnose illnesses using a drop of blood. Later, it was observed that the technology was not working, but that had not stopped Holmes from fleecing funds from consumers and investors. She engaged in corruption and fraudulent activities that made her one of the youngest female billionaires. A Wall Street Journal report opened people’s eyes in 2015, making them question the company’s technology and methods used to diagnose and treat patients. Flatly, Holmes lied to the media and the investors about the functioning of her organization because her lies had continued to pour billions of dollars into the firm. Eventually, SEC observed and agreed that Holmes lied to investors and misled her partners by using a modified third-party equipment instead of its machinery to process the patient’s tests. The company was charged with a massive fraud of over $700 million. In 2018, Holmes agreed to give up the firm’s financial control and return shares amounting to $18.9 million to Theranos stock (Watt,2019). Such a scandal compromises the principles of authentic leaders. The leaders are expected to be ethical and trustworthy. They should be “genuine” with good intentions (Bryman et al.,2011). Holmes showed a lack of the tenets of authentic leadership theory. Her behavior was more of the traditional and pseudo-transformational practices that leaders tend to use and make corporate mistakes. The example, is therefore, a justification of the relevancy of the authentic theory of leadership.

The Background of the Theory’s Emergence

The Theory stems from the term “authenticity,” which traces to Ancient Greece. Philosophers emphasized authenticity as an essential segment that entails being in control of oneself and knowing oneself. In the early 1960s, the Theory emerged as a framework that enables an organization to reflect itself authentically via good leadership during its evolution. It emerged as a trigger that could make the public judge the morality and genuineness of organizations via their leaders. Bill George, however, used the previous arguments to clarify and provide the principles of the Theory.  In 2003, there emerged a “strong WorldCom and Enron Scandals” the triggered a wish for trustworthy leaders (Scouller and Chapman,2018). George became the first individual to use “authentic leadership” as a term in reaction to the scandals, thus becoming the father of the Theory. In the Harvard Business Review, Bill formulated elements that define the Theory. According to George, being an Authentic leader begins by understanding one’s life story. The story provides the context of one’s experiences. George argued that developed self-awareness is central to becoming authentic. Also, he noted that practicing leadership principles and values sets the pace for authentic leadership. Stabilizing intrinsic and extrinsic motivation becomes central to leadership (George,2015). To succeed as a leader, George argues that it would require building a support team in the form of subordinates. It would require becoming confident, transparent, and empowering. George’s arguments have become the central principles of the Theory, thus justifying why he is regarded as the father of the Authentic Leadership Theory.

Examples of Authentic Leaders

Andy Stuart

Stuart is a former head of the Norwegian Cruise Line. He is currently the head of Global Ports Holding and perfectly qualifies as an authentic leader. He is the sole reason for transforming NCL and enabling it to create freestyle cruising, a tradition that has developed and changed the cruise industry. However, his credibility as an authentic leader lies in his leadership framework that nurtured valuing employees. According to Towler (2019), a genuine leader is passionate and leads with heart and great zeal. The leader focuses on the long-term goals and understands that patience and excellent work ethic are central to success. Stuart is that kind of a leader. He has thirty years of experience and has never backed down from his goal. When he stepped down as the CEO of NCL, he did not relax. Instead, he began serving immediately as a senior advisor to Global Ports Holding as he awaited a smooth transition to take over leadership. Besides, he values working with the people and building relationships that govern success. While at NCL, he was focused on getting the best out of everyone regardless of hierarchy (Kalosh,2019).  He developed NCL partnerships with other famous air travel agencies that created professional networks which gave opportunities for his staff. Suh charisma and work ethic for his followers make him authentic. (McCarthy,2020). As such, his mark and impact are felt at NCL. His capacity to build relationships, work ethic and awareness of his influence on the organization justify why he is an authentic leader.

Jacob Schram

Schram is also an authentic leader. In 2019, he was appointed as the new CEO of Norwegian Air, a move that was seen as strategic to transform the Air industry. However, transformation does not base on corporate operations. Instead, it would be based on his leadership skills that theorize Authentic leadership. What makes him an authentic leader is his philosophy and belief in talent development. He believes that to attract good talent, employers must create a corporate culture of enthusiasm and individual development. He disposes of people and technology comparisons and emphasizes that employees are still the forces behind strategic success, making them valuable assets (Schram,2017). His philosophy is that good employees create a good customer experience. He has created a myriad of training programs at Norwegian Air that focus on the talent development of employees. For example, through his leadership, the organization has a robust relationship with SAP Litmos LMS (Klevan,2021), a training institution that trains subordinates on developing their talents. Such a move reveals a leader’s commitment to be selfless in service for the people. He has prioritized the subordinates over his ambitions. He has openly shared his feelings and emotions about seeing the growth of his employees and remains transparent in handling corporate issues that concern the subordinates. Such instances, thus, justify why he is an authentic leader.

Elon Musk

Musk is an influential leader and CEO who maps the tenets of authentic leadership theory. He is obsessed and passionate about getting something done by focusing on the tiniest of the detail. He strives for excellence and sets himself apart from others via his unique work ethic. The result of passion is loyalty, trust, and adoration from his subordinates. His primary strength is focusing on the long-term goals and the bigger picture. He is frequently seeking feedback from his employees and undertaking self-evaluations to underpin his weaknesses and improve. It is the self-awareness component that parallels the principles of the authentic leadership theory. Musk is true to his identity and spends 100 hours working every week (Youney,2018). He is willing to get his hands dirty and has created a sense of atmosphere that gives his employees autonomy, including interacting with him. He has become a role model to his employees that offers them ambition and motivation via his work ethic, moral conduct, and social interactions. Musk has become a great authentic leader through his internalized ethical perspective, relational transparency, “balanced processing,” and self-awareness.

Conclusion

Authentic leadership theory becomes an approach that rejects the pseudo-transformational leadership that features unethical practices. Proposed by Bill George, the Theory features charismatic leaders. The leaders are self-aware with relational transparency, internalized ethical perspective, and a “balanced processing.” They are kind, respectful, highly ethical, and value their employees. Transparency and trustworthiness are the heart of the Theory, which consumers view as a framework for trusting organizations. Emerging during ancient Greek times, the Theory started gaining prominence in the 1960s. However, until 2003, when scandals and corruption erupted in the corrupt world, Bill George developed the Theory to react against pseudo-transformational leadership. Today, global leaders such as Elon Musk, Jacob Schram, and Andy Stuart are good examples of authentic leaders who have embraced the Theory’s tenets, resulting in immense corporate success.

References

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