Absence Of Transformational Leadership In Greek Enterprises Results In The Inability Of Forming Learning Organizations

Abstract

Transactional leadersemploy transactions in which they use their legitimate reward and coercivepowers to give commands and exchange rewards for services rendered. Transformationalleadership makes subordinates aware of the importance of their jobs andperformance to the organization as well as to their own needs for personalgrowth which precipitates motivation for them to work for the good of theorganization. Learning organizations are characterized by total employeeinvolvement in a process that is collaboratively conducted and collectively accountablewithin a planned and meaningful change that is directed toward shared values orprinciples. Traditional organizations exist within stable environments, havevertical structures, and have a strategy that is formulated at the top. Additionally,they have a centralized decision-making process; tasks are rigidly defined andspecialized; the organizational culture is rigid and resistant to change; andthey have formal systems of filtered communication pivoting around the verticalhierarchy. Learning organizations cannot be formed in the Greek privatebusiness sector because the leadership of said sector is not transformational.Greece failed to develop an advanced industrial complex because of the largenumber of small enterprises in the form of proprietorships and partnershipsthat have dominated the economy. Additionally, Greek industry experienced the profound absence of thecorporate form of business that necessitates medium and large businessenterprises for the attainment of effective and efficient factors of productionand economies of scale that precipitate transformational leadership and learningorganizations.